What Makes Tapestry (TPR) an Investment Bet?

Renaissance Investment Management, an investment management company, released its Q3 2025 “Large Cap Growth Strategy” investor letter. A copy of the letter can be downloaded here. Stock prices continued to rally in the third quarter, with the S&P 500 climbing to all-time highs during September. The Russell 1000 Growth returned 10.5% and the S&P 500 returned 8.1% in the quarter. However, the strategy underperformed both the Russell 1000 Growth benchmark and the S&P 500. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Renaissance Large Cap Growth Strategy highlighted stocks such as Tapestry, Inc. (NYSE:TPR). Tapestry, Inc. (NYSE:TPR) offers lifestyle brand products that operates in Coach, Kate Spade, and Stuart Weitzman segments. The one-month return of Tapestry, Inc. (NYSE:TPR) was 1.55%, and its shares gained 134.49% of their value over the last 52 weeks. On October 27, 2025, Tapestry, Inc. (NYSE:TPR) stock closed at $114.97 per share, with a market capitalization of $23.799 billion.

Renaissance Large Cap Growth Strategy stated the following regarding Tapestry, Inc. (NYSE:TPR) in its third quarter 2025 investor letter:

"During the third quarter, we made several changes to the portfolio where we saw better opportunities for future growth. In September, we added a new position in the Consumer Discretionary sector with Tapestry, Inc. (NYSE:TPR), a luxury retailer best known for the luxury brands Coach and Kate Spade. We like how management successfully revitalized the Coach brand into a credible luxury contender by building brand connections with Gen Z and Millennials. Looking ahead, we believe the sale of Stuart Weitzman will allow Tapestry to focus on its core growth driver, Coach, and also rejuvenate a sluggish Kate Spade brand, with new leadership that will follow the Coach turnaround playbook. In addition, Coach remains under-penetrated in the Euro pean luxury market, suggesting ample room for further organic growth."

Tapestry, Inc. (NYSE:TPR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 67 hedge fund portfolios held Tapestry, Inc. (NYSE:TPR) at the end of the second quarter, compared to 73 in the previous quarter. While we acknowledge the potential of Tapestry, Inc. (NYSE:TPR) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Tapestry, Inc. (NYSE:TPR) and shared the list of best must-buy dividend stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.