September: The Sports Fund developed positively despite a weak month for technology

Volatility in the market continued in September and technology companies were weak with a decline for the Nasdaq of 5.2 percent, the Dow Jones closed down only 2.3 percent. This was the first negative month since March. The big companies within FAANG were the big losers. The valuation multiples for these companies have expanded strongly during the year. However, they differ slightly between the companies as Amazon and Netflix have had their profits adjusted upwards during the year, while the others have had them downgraded in the wake of Covid. 

The sports market is growing very strongly and we see daily new investments in Esport from companies around the world; Ferrari, Ikea and Adidas to name a few new projects.

The Esport fund closed up 1.36 percent during the month despite the negative sentiment on Nasdaq. We did not make any major changes to the portfolio during the month, with the exception that we bought a little more Sony and started building a position in Prosus. By buying Prosus, we get to buy Tencent at a discount as this is the main part of the value in the company.

We expect strong reports from all companies during the quarter, despite the fact that we have the major upgrades from Sony and Microsoft in terms of gaming platforms at the end of the year. Above all, we believe that Activision will hit the market and their own expectations sharply during the quarter.


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