What Makes Lululemon (LULU) a Long-Term Compounder?

Core Insights - Tapasya Fund achieved a net return of 23.5% in 2025, outperforming the S&P 500's return of 17.9% [1] - The fund's performance was supported by the theme of Artificial Intelligence (AI), which helped the market reach over 38 new all-time highs [1] - The fund aims to avoid sector-specific bubble bursts to mitigate portfolio risks during market downturns [1] Company Analysis: Lululemon Athletica Inc. (NASDAQ:LULU) - Lululemon's one-month return was 3.51%, but it experienced a significant decline of 46.35% over the past 52 weeks, with a market capitalization of $25.161 billion as of January 08, 2026 [2] - The investment thesis for Lululemon is based on its potential for international expansion, particularly in China, despite facing challenges from tariffs and competition [3] - Lululemon's Q3 2025 net revenue rose 7% to $2.6 billion, but it is not among the top 30 most popular stocks among hedge funds, with a decrease in hedge fund holdings from 55 to 42 [4]