Over a dozen hedge funds have invested in the video game company, Activision, according to Reuters.
The massive investment is a bit surprising, because the video game market is down 12% this year in the US.
But Activision A(TVI) shares are up 30% this year, mostly due to the release of the monster hit “Call of Duty.” The gaming company also has recurring revenue from “World of Warcraft,” and “Starcraft 2” is set to be released next year.
Reuters: “The expectation for ‘Call of Duty’ is probably what they were trading into,” said Janco Partners analyst Mike Hickey, regarding fund manager’s buying shares. “You think these things are already priced in, but it never seems to be.”
Soros Fund (who bought 22,000 shares), Singh’s TPG Axon Capital (who bought 4.3 million shares), Adage Capital, and Carlson Capital are among those who have invested.