Atai Capital, an investment management firm, recently released its first-ever quarterly investor letter. A copy of the same can be downloaded here. In the first quarter of 2023, the fund returned 4.39% net of all fees compared to a 7.50% return for the S&P500 Index and a 2.70% return for the Russell 2000 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Atai Capital highlighted stocks Activision Blizzard, Inc. (NASDAQ:ATVI) in the first quarter 2023 investor letter. Headquartered in Santa Monica, California, Activision Blizzard, Inc. (NASDAQ:ATVI) is an interactive gaming and entertainment company. On April 14, 2023, Activision Blizzard, Inc. (NASDAQ:ATVI) stock closed at $85.27 per share. One-month return of Activision Blizzard, Inc. (NASDAQ:ATVI) was 7.47%, and its shares gained 7.85% of their value over the last 52 weeks. Activision Blizzard, Inc. (NASDAQ:ATVI) has a market capitalization of $66.875 billion.
Atai Capital made the following comment about Activision Blizzard, Inc. (NASDAQ:ATVI) in its Q1 2023 investor letter:
“Those familiar with Activision Blizzard, Inc. (NASDAQ:ATVI) will quickly realize this is by no means a small-cap stock and boasts a rather large $66B market cap. While our focus is firmly on small-cap stocks, there will be occasions when I see something in large-cap land that piques my interest.
For those unfamiliar with Activision Blizzard, they are a video game developer and publisher being acquired by Microsoft at $95/share. They develop and own IPs such as Call of Duty, World of Warcraft, Diablo, Overwatch, Hearthstone, and Candy Crush. These are some of the most valuable IPs in gaming, from both a business perspective and a popularity perspective. I’ve been an avid gamer for years and am not a fan of most of their games (quite the opposite actually), but I can still appreciate how valuable these IPs are. Activision games have some of the lowest expectations in the industry but still sell millions of copies. They are currently churning out a new Call of Duty every other year with practically no differences between the titles, and yet gamers consistently buy these “new” releases, every, single, time. In fact, the most recent release (MW2) was the fastest-selling COD game ever, amassing over $1B in sales in the first ten days after release. Candy Crush has been the top-grossing game franchise in the U.S app stores for twenty- two quarters in a row, and Diablo 4 is very likely to out-sell its predecessor Diablo 3 (30M+ copies over its lifetime) while being just as monetized via in-game skins and DLC’s if not better. Throw in the gaming secular tailwind, a highly competent CEO – Bobby Kotick, and I consider Activision to be a great business (what I’ve stated here is just high level of course) …” (Please click here to read the full text)
Photo by Fábio Silva on Unsplash
Activision Blizzard, Inc. (NASDAQ:ATVI) is in 26th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 129 hedge fund portfolios held Activision Blizzard, Inc. (NASDAQ:ATVI) at the end of the fourth quarter which was 96 in the previous quarter.
We discussed Activision Blizzard, Inc. (NASDAQ:ATVI) in another article and shared the list of best Warren Buffett stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q1 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.
