October: negative month in the wake of reduced risk appetite

Finserve Global Esports Fund lost 1.1 percent in October, which was better than the Nasdaq Composite Index, which fell 2.4 percent during the period. Since the fund's launch in June, the increase sums up to 5.2 percent. The month was somewhat turbulent in the stock market, where risk appetite declined markedly towards the end of the month, which translated into a broad case for technology-related companies. This is despite the fact that the reports presented were generally better than expected. Of the S&P companies that had reported at the end of the month, 88 percent beat expectations.

Of the Global Esports Fund's holdings, the positions in AMD, Nvidia, Activision, Ubisoft and Zynga weighed. Among the winners were Logitech, Sony, Sea Limited, TSMC and Tencent. AMD fell in light of the company's purchase of its sector colleague Xilinx for $ 35 billion. The market is worried that AMD will buy a company with lower margins and growth at a high price, while the company itself believes that they can shift the growth for Xilinx and that there will be great synergies between the companies.

Logitech presented a report that was far better than expected with an increase in sales during the quarter of the equivalent of 75 percent. The company has benefited greatly from the work from home (WFH) trend and is optimistic about the future. Growth was clearly helped by WFH, but even without it, the company has shifted its growth and improved its position in the market.

During the month, the fund increased its position in Zynga and initiated a position in Paradox Interactive. After the end of the month, there have been a number of reports confirming the strong trend we have seen in esports for a long time. Among other things, Activision and Zynga have presented very strong results, despite this, the company's share prices have fallen back somewhat as the market has begun to focus on companies that benefit from a recovery in the economy.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
email
Share on print
Print

More to discover