Wedgewood Partners, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A return of +4.8% was reported by the fund for the Q1 of 2021, outperforming its Russell 1000 Growth benchmark that delivered a 1% return, but below both the S&P 500 and Russell 1000 Value Index that had a 6.2% and 11.3% gains in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Wedgewood Partners, in their Q1 2021 investor letter, mentioned Electronic Arts Inc. (NASDAQ: EA) and shared their insights on the company. Electronic Arts Inc. is a Redwood City, California-based video game company that currently has a $40.8 billion market capitalization. Since the beginning of the year, EA delivered a -0.57% return, while its 12-month gains are up by 25.79%. As of April 13, 2021, the stock closed at $142.11 per share.
Here is what Wedgewood Partners has to say about Electronic Arts Inc. in their Q1 2021 investor letter:
“Electronic Arts bookings grew over +18% as it benefitted from the launch of its flagship FIFA 2021, one quarter later than usual. Beyond the typical annual updates to its sports franchises, the Company did not launch any new games during its fiscal 2021 (ending March 2021). The Company (along with most large publishers) elected to add more polish to new games and generate more productivity from existing titles as the addressable market dramatically expanded during COVID-19 lockdowns. This prudent strategy should help sustain Electronic Arts double-digit gains in player count and player spend – even after the positive effects of the pandemic wane. The stock market has begun discounting the end of the Company’s pandemic “benefits” as early as last summer; however, we expect the Company to be able to sustain the growth of annual titles as well as compound growth by launching new titles (such as Battlefield) on an enlarged user base.”
Our calculations show that Electronic Arts Inc. (NASDAQ: EA) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Electronic Arts Inc. was in 50 hedge fund portfolios, compared to 62 funds in the third quarter. EA delivered a 4.82% return in the past 3 months.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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Disclosure: None. This article is originally published at Insider Monkey.
