Aristotle Atlantic Partners, an investment management firm, released its “Aristotle Atlantic Value Equity Fund” second quarter 2023 investor letter, a copy of which can be downloaded here. For the second quarter of 2023, Aristotle Capital’s Value Equity Composite posted a total return of 4.56% gross of fees (4.51% net of fees), outperforming the 4.07% return of the Russell 1000 Value Index and underperforming the 8.74% return of the S&P 500 Index. Spare some time to check the fund’s top 5 holdings to know more about their top bets for 2023.
In its Q2 2023 investor letter, Aristotle Value Equity mentioned Activision Blizzard, Inc. (NASDAQ:ATVI) and explained its insights for the company. 2008, Activision Blizzard, Inc. (NASDAQ:ATVI) is a Santa Monica, California-based video game holding company with a $72.4 billion market capitalization. Activision Blizzard, Inc. (NASDAQ:ATVI) delivered a 20.24% return since the beginning of the year, while its 12-month returns are up by 18.72%. The stock closed at $92.04 per share on September 01, 2023.
Here is what Aristotle Value Equity has to say about Activision Blizzard, Inc. (NASDAQ:ATVI) in its Q2 2023 investor letter:
“Headquartered in Santa Monica, California, Activision Blizzard is one of the largest video game companies in the world. The company develops and sells games that are played by nearly 400 million monthly active users across 190 countries. Activision Blizzard is a product of the 2008 merger of Activision, the console game maker, and Blizzard Entertainment, the PC game maker. In 2015, Activision Blizzard also acquired King Digital Entertainment, the developer of mobile games. The combined entities own some of the most well‐known franchises globally, including World of Warcraft, Call of Duty and Candy Crush. Together these three franchises account for roughly 80% of Activision Blizzard’s sales.
The company has successfully navigated multiple console cycles and, in recent years, has shifted its revenue mix away from physical sales toward more recurring sources. In 2013, roughly 70% of sales came from physical games, while today ~75% of sales come from subscriptions, in‐game content and advertising across mobile devices, consoles and PCs.
In early 2022, Microsoft—a current Value Equity holding—announced its intention to acquire Activision Blizzard. Our subsequent discussions with Sony, also a current holding, furthered our understanding that access to Activision Blizzard’s gaming franchises is critical for PlayStation, Xbox and the broader videogame industry. We do not attempt to predict regulatory approval of the transaction and instead view the company as an optimal investment regardless of whether the acquisition takes place…” (Click here to see the full text)
Photo by Fábio Silva on Unsplash
Our calculations show that Activision Blizzard, Inc. (NASDAQ:ATVI) ranks 12th on our list of the 30 Most Popular Stocks Among Hedge Funds. Activision Blizzard, Inc. (NASDAQ:ATVI) was in 128 hedge fund portfolios at the end of the second quarter of 2023, compared to 129 funds in the previous quarter. Activision Blizzard, Inc. (NASDAQ:ATVI) delivered a 14.34% return in the past 3 months.
We also discussed Activision Blizzard, Inc. (NASDAQ:ATVI) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q2 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
