5 Best Low-Risk Stocks to Buy Right Now

2. Activision Blizzard Inc. (NASDAQ:ATVI)

No of HFs: 93

Total Value of HF Holdings: $4.22 Billion

ATVI lost 12.3% in March 2020. The top hedge fund holder of this stock is Ken Griffin’s Citadel Investment Group which had $625 million invested in the stock at the end of September. An insider recently purchased 1,000 shares at around $80 in August 2020. The stock is up 15% since then.  Giverny Capital mentioned ATVI in its Q2 2020 investor letter:

“Activision is a leading maker of complex, highly interactive video games, including World of Warcraft and Call of Duty. We’ve followed the company for years (and owned it personally) and believe it is well positioned to win increasing hours of consumer attention. But Activision has struggled to come up with hit games in recent years. It relies heavily on new iterations of Call of Duty, plus the mobile game Candy Crush. A highly interactive multi-player game can cost upwards of $100 million to create. We’re not sure work-from-home is conducive to this kind of large-scale engineering and animation work.

Activision clearly benefits from the pandemic as people stay at home, but this won’t last forever. As Activision caught a tailwind this spring, we opted to exit the business. At best, we were premature. The stock has risen about 20% since we sold it as the stay-at-home theme strengthens.”

Pixabay/Public Domain