Investing

Under Armour is in a 6-month holding period, says major shareholder Ron Baron

Key Points
  • Ron Baron says Under Armour will not be a near-term performer.
  • He says he wouldn't buy the stock at its current levels.
Ron Baron: Under Armour in 6-month holding period
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Ron Baron: Under Armour in 6-month holding period

Closely watched investor Ron Baron told CNBC on Tuesday that he sold half his stake in Under Armour before its recent troubles, and said the stock will not be a near-term performer.

"I had a painful period of time in that company," the billionaire founder of Baron Capital said on "Squawk Box."

Baron began investing in Under Armour 10 years ago. Wall Street is worried about the company's ability to grow sales amid an increasingly competitive sports retail landscape. Shares of Under Armour's Class A shares are down nearly 40 percent over the past 12 months.

Baron said he wouldn't buy he stock at its current levels, saying he has the "appropriate amounts." He wants to see how quickly it recovers and expects to make a decision in the next six months.

"This is not going to be a near-term performer, I don't think," he said. But added that CEO Kevin Plank is a "driven" and "talented" man.

Plank has said he is optimistic about the company's growth and outlined a plan to tackle footwear, saying "it always comes back to product innovation — building great, great product — and I want to detail that our [shoe] pipeline is full."