Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned ‐2.99% gross of fees (‐3.05% net of fees), outperforming the Russell 1000 Value Index’s ‐3.16% return and the S&P 500 Index’s ‐3.27% return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Aristotle Capital Value Equity Strategy highlighted stocks like Activision Blizzard, Inc. (NASDAQ:ATVI) in the third quarter 2023 investor letter. Headquartered in Santa Monica, California, Activision Blizzard, Inc. (NASDAQ:ATVI) develops and publishes entertainment content and services. On October 11, 2023, Activision Blizzard, Inc. (NASDAQ:ATVI) stock closed at $94.47 per share. One-month return of Activision Blizzard, Inc. (NASDAQ:ATVI) was 2.44%, and its shares gained 29.20% of their value over the last 52 weeks. Activision Blizzard, Inc. (NASDAQ:ATVI) has a market capitalization of $74.329 billion.
Aristotle Capital Value Equity Strategy made the following comment about Activision Blizzard, Inc. (NASDAQ:ATVI) in its Q3 2023 investor letter:
“We first purchased Activision Blizzard, Inc. (NASDAQ:ATVI), one of the largest video game companies in the world, during the second quarter of 2023. We have long appreciated the critical role Activision Blizzard’s gaming franchises play for PlayStation, Xbox and the broader gaming industry. Moreover, we believe the company is on the path toward increasing its revenue from new products that rely on in‐game transactions and advertising, as well as through further leveraging its intellectual property from consoles and PCs into mobile games. At the time of purchase, there was heightened uncertainty regarding whether regulators would approve the pending acquisition of the company by Microsoft, a current Value Equity holding. This, we believe, provided an opportunity for us to own Activision Blizzard at an attractive discount to our estimates of intrinsic value should the company remain independent. Conversely, if the transaction commenced and Activision Blizzard was indeed acquired, we would still benefit through our investment in Microsoft. As such, rather than attempting to predict regulatory approval of the transaction, we instead saw the company as an optimal investment. With the uncertainties regarding regulatory approval nearly disappearing, we decided to exit our investment.”
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, 134 hedge fund portfolios held Activision Blizzard, Inc. (NASDAQ:ATVI) at the end of the second quarter, which was 128 in the previous quarter.
We discussed Activision Blizzard, Inc. (NASDAQ:ATVI) in another article and shared the list of best low risk investments in 2023. In addition, please check out our hedge fund investor letters Q3 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.
