September: Demand remains high

Market turmoil over growth, inflation and long-term interest rates continued in September. The inflation anxiety has spread to wage increases in the US and most companies have problems getting hold of certain goods due to shortages and shipping problems. There is a great risk that several physical goods will run out in Christmas shopping and that this will also affect the companies that are dependent on advertising.

Demand for computer and console games remains high and consumers can look forward to several major titles in the coming months. Interesting to note that Netflix bought its first game studio focused on mobile gaming. Amazon seems to have a big hit in the game New World which is number one on most platforms.

The valuation of the major gaming companies is at historically attractive levels with companies such as Nintendo and Activision Blizzard trading below 15x operating profit. Above all, the sector has been weak in that the market is worried about declining demand when societies open up. We believe the market has too negative a view of gaming and sports companies and that sales will continue to be strong.

The Global Esports Fund was down -4,64% in September and is now up 9,45% so far this year.

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