The worries around economic growth, inflation and the Delta COVID variant spread continued, as data points have been mixed. Growth data points indicate a slight slowdown, while inflation numbers continue to be hotter than expected.
Video gaming stocks were ice cold during the summer, driven by tough YoY comps especially in engagement and the negative political climate in China against gaming. On top of this, IDFA hit some of the names, which had a large part of its platform on iOS. However, underlying demand has been better than expected for games across the board. The number of new game releases for the second half is record high, which should most likely drive demand but also lead to tough competition.
Software has in general had a strong quarter, with most major names beating expectations and indicating a strong second half of the year for demand. Growth has accelerated despite tough comps and margins have improved further. We increased our positions in Salesforce and Adobe during the summer.
The demand for Esports events continues to increase, which should be positive when live events kick off again.
We increased our position in Zynga in August.
The Esports fund ended the month up 3.14% and is now up 14.85% YTD.