Do These Millionaires Know Something About Under Armour You Don't?

Peter Lynch said, "Bottom fishing is a popular investor pastime, but it's usually the fisherman who gets hooked." Under Armour (NYSE: UAA) (NYSE: UA) seems like a perfect example of the proverbial falling knife. But fortunately for investors -- including the dozens of hedge funds who've bought into the athleticwear maker's shares -- its turnaround story may be about to gain traction. By focusing on its own operations instead of spending millions to sponsor teams, Under Armour might become a focused performer for investors.

Just five years ago, Under Armour was in growth mode, having posted 26 straight quarters of at least 20% annual revenue growth. Unfortunately, poor inventory management, questionable acquisitions, and expansion into sports it really didn't understand derailed the growth machine.

During some of its best growth years, the company famously used the slogan "Protect this house" to excite customers about the brand. During the company's fast-growth phase, Under Armour committed to spending millions of dollars each year -- peaking at more than $1 billion in 2016 -- on sponsorships.

Source Fool.com