Atai Capital, an investment management firm, recently released its second investor letter. A copy of the same can be downloaded here. The fund returned 8.32% in the second quarter of 2023 and 13.06% year-to-date, net of all fees, compared to a 16.89% total return for the S&P 500 YTD and an 8.09% total return for the Russell 2000 YTD. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Atai Capital highlighted stocks like Activision Blizzard, Inc. (NASDAQ:ATVI) in the second quarter 2023 investor letter. Headquartered in Santa Monica, California, Activision Blizzard, Inc. (NASDAQ:ATVI) develops and publishes entertainment content and services. On July 12, 2023, Activision Blizzard, Inc. (NASDAQ:ATVI) stock closed at $90.00 per share. One-month return of Activision Blizzard, Inc. (NASDAQ:ATVI) was 10.50%, and its shares gained 18.05% of their value over the last 52 weeks. Activision Blizzard, Inc. (NASDAQ:ATVI) has a market capitalization of $70.754 billion.
Atai Capital made the following comment about Activision Blizzard, Inc. (NASDAQ:ATVI) in its second quarter 2023 investor letter:
“Just because something should happen doesn’t mean it will happen, and this was precisely the case when the CMA surprised the market (and myself) by blocking Microsoft’s potential acquisition of Activision Blizzard, Inc. (NASDAQ:ATVI). This deal shouldn’t have been blocked by any regulatory body that acts objectively and is worth its salt (In my opinion that is), but the CMA decided to overreach and block the deal on the back of Cloud Gaming of all things. Regardless, we didn’t buy Activision solely for the merger arbitrage opportunity and realized there was always a risk of the deal being blocked or shoved out a few more quarters when we initially purchased our shares. At the end of the day there are humans behind these anti-trust decisions; while they are supposed to act objectively and base their decisions on facts and evidence, they aren’t objective decisions; they are subjective decisions, and if the CMA wanted to block the deal they could, and well, they did!
To my surprise however, the stock traded down to only ~$79.00 before market open on the day the CMA released their decision not to allow the merger. At the time, I had decided it was best to lock in our gains, let the dust settle, and revisit the name once we had more regulatory clarity. A few days later, Activision traded down to ~$74, and we purchased a small position with the intention to add over the coming days/weeks. We then added on the European Commission’s approval of the acquisition and on Diablo 4’s great overall reception and sell-through…” (Click here to read the full text)
Photo by Fábio Silva on Unsplash
Activision Blizzard, Inc. (NASDAQ:ATVI) is in 10th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 128 hedge fund portfolios held Activision Blizzard, Inc. (NASDAQ:ATVI) at the end of first quarter 2023 which was 129 in the previous quarter.
We discussed Activision Blizzard, Inc. (NASDAQ:ATVI) in another article and shared the list of most owned stocks by hedge funds. In addition, please check out our hedge fund investor letters Q2 2023 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.
