July: The gaming market grew slightly during the quarter

The market and investors are now confused, is growth in the global economies about to weaken? Are we heading for new lockdowns due to the Delta version of COVID? What happens to inflation, is this one to stay? However, the companies continue to deliver and a large part of the companies that reported the Q2 results have beaten their own and the market's estimates.

When it comes to the gaming market, we have really only seen two results, Ubisoft which came in weak as they had no new titles during the quarter and Microsoft which had problems getting component deliveries for its new Xbox. However, we generally believe that the gaming market grew slightly during the quarter, which is a more positive view than companies that expected a slight decline.

On the hardware side, we have seen strong results from AMD and Logitech which show continued strong demand for games. However, we believe that the number of players and hours may be slightly weaker than last year as these key figures were very positively affected by the fact that many countries closed down their economies. Many of our holdings report in early August. We believe in good reports but are a little worried about the number of new games released during the second half of the year that could make the market very tough.

The fund returned -1.0% in July and is now up 11.3% this year with a rolling 12-month Sharpe ratio of 2.5.

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