Crossroads Capital LLC, an investment management company released its fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The Crossroads Capital Investment Partners, LP returned 3.5% net of all fees and expenses, bringing YTD net returns to 5.7%. The fund has compounded at 14.8% and 14.7% net, respectively, since inception, and over the last five years outperforming its most suitable benchmarks, as well as the S&P 500. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Crossroads Capital emphasized stocks such as Nintendo Co., Ltd. (OTC:NTDOY). Nintendo Co., Ltd. (OTC:NTDOY) develops, manufactures, and sells home entertainment products. The one-month return of Nintendo Co., Ltd. (OTC:NTDOY) was 12.61%, and its shares gained 34.74% of their value over the last 52 weeks. On February 28, 2025, Nintendo Co., Ltd. (OTC:NTDOY) stock closed at $18.58 per share with a market capitalization of $85.809 billion.
Crossroads Capital stated the following regarding Nintendo Co., Ltd. (OTC:NTDOY) in its Q4 2024 investor letter:
“Our thesis on Nintendo Co., Ltd. (OTC:NTDOY), the Godzilla of video gaming, is quite simple. Armed with its Apple-like iterative hardware model and software-based ecosystem, as well as a growing active player base and ever-increasing digital sales, the company should generate substantial earnings growth that is de-coupled from the past “boom-bust” console cycles it previously underwent.
Indeed, for the first time ever, the new Switch will slide right into an existing software ecosystem, kickstarting an upgrade cycle from a profit base of nearly $4 billion rather than starting from zero as it has with every other major console changeover in its multi-decade history in the video game space. And if that wasn’t enough, Nintendo begins the final stage of its ongoing business model transformation with an active playing base of 129 million users, the largest and most diverse integrated hardware/software ecosystem in all of gaming, over 34 million NSO subscribers, and industry-leading (historically under-monetized) IP library that continues to shine, getting new life in a rapidly expanding number of movies, theme parks, retail stores, general merchandise, and (we strongly suspect) a whole new crop of perpetual first-party live service games in the months and years ahead…” (Click here to read the full text)
A close up of a person’s hands using a home console gaming device.
Nintendo Co., Ltd. (OTC:NTDOY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 1 hedge fund portfolios held Nintendo Co., Ltd. (OTC:NTDOY) at the end of the fourth quarter compared to 1 in the third quarter. While we acknowledge the potential of Nintendo Co., Ltd. (OTC:NTDOY) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In addition, please check out our hedge fund investor letters Q4 2024 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.