Ariel Investments, an investment management firm, published its “Ariel International & Ariel Global Fund” third-quarter 2021 investor letter – a copy of which can be downloaded here. Ariel International Fund returned -4.55% in the third quarter, trailing the MSCI EAFE Net Index which lost -0.45%, and the MSCI ACWI ex-US Net Index which returned -2.99%. Meanwhile, Ariel Global Fund Investor Class returned -3.92% in the third quarter and Ariel Global Fund–Institutional Class delivered a -3.82% return, compared to the MSCI ACWI Index which lost -1.05% for the same quarter. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.
Ariel International & Ariel Global Fund, in its Q3 2021 investor letter, mentioned Nintendo Co., Ltd. (NYSE: NTDOY) and discussed its stance on the firm. Nintendo Co., Ltd. is a Kyoto, Japan-based multinational consumer electronics and video game company with a $55.1 billion market capitalization. NTDOY delivered a -27.71% return since the beginning of the year, while its 12-month returns are down by -27.99%. The stock closed at $58.21 per share on December 17, 2021.
Here is what Ariel International & Ariel Global Fund has to say about Nintendo Co., Ltd. in its Q3 2021 investor letter:
“Japanese video game developer Nintendo Co., Ltd was the other detractor within Communication Services in the quarter. As the economy recovers from the stay, work and play from home environment, investors are concerned year-over-year sale comparisons for its hybrid console Nintendo Switch, portable Switch Lite and popular game Animal Crossing: New Horizons may prove more difficult. We believe the hardware offering, whose initial model was launched in 2017, will have a longer lifecycle than previous generations. The console continues to be sold-out across most distribution channels, validating our view that demand remains strong. Furthermore, it’s large install base and vertically integrated business model of selling proprietary software titles enable higher profits. There has also been an increasing shift away from third-party distributors towards online sales via digital downloads, further enhancing margin expansion. Looking ahead, Nintendo’s partnership with Tencent in China, as well as sales across mobile platforms, offers runways for additional growth.”
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Based on our calculations, Nintendo Co., Ltd. (NYSE: NTDOY) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. NTDOY was in 1 hedge fund portfolio at the end of the third quarter of 2021, compared to 2 funds in the previous quarter. Nintendo Co., Ltd. (NYSE: NTDOY) delivered a -4.10% return in the past 3 months.
In October this year, we also shared another hedge fund’s views on NTDOY in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.
Disclosure: None. This article is originally published at Insider Monkey.
