Should You Still Consider Investing in Activision Blizzard (ATVI)?

Baron Funds, an asset management firm, published its “Baron Partners Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. An increase of 5.52% was delivered by the fund’s institutional shares for the third quarter of 2021, outperforming the Russell Midcap Growth Index which declined 0.76%  for the same period. The S&P 500 Index rose 0.58% while the Morningstar Large Growth Category (the “Peer Group”) Average declined 0.07%. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Baron Partners Fund, in its Q3 2021 investor letter, mentioned Activision Blizzard, Inc. (NASDAQ: ATVI) and discussed its stance on the firm. Activision Blizzard, Inc. is a Santa Monica, California-based video game company with a $44.6 billion market capitalization. ATVI delivered a -38.30% return since the beginning of the year, while its 12-month returns are down by -29.17%. The stock closed at $57.29 per share on December 02, 2021.

Here is what Baron Partners Fund has to say about Activision Blizzard, Inc.  in its Q3 2021 investor letter:

“Core Growth businesses were hurt by the rotation into more value and cyclical businesses. Despite the rotation, this business category still outperformed the broader Index. Activision Blizzard, Inc. were pressured by political activities. Activision faced regulatory concerns in China and investors shifted to more stable businesses.”

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Based on our calculations, Activision Blizzard, Inc. (NASDAQ: ATVI) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. ATVI was in 80 hedge fund portfolios at the end of the third quarter of 2021, compared to 78 funds in the previous quarter. Activision Blizzard, Inc. (NASDAQ: ATVI) delivered a -29.43% return in the past 3 months.

Disclosure: None. This article is originally published at Insider Monkey.