Should You Buy Activision Blizzard, Inc. (ATVI)?

Does this data make Activision Blizzard, Inc. (NASDAQ:ATVI) a buy? We’ll see.

In the eyes of many investors, hedge funds are perceived as bloated, old investment tools of a period lost to current times. Although there are over 8,000 hedge funds in operation today, Insider Monkey focuses on the elite of this club, close to 525 funds. Analysts calculate that this group has its hands on most of the hedge fund industry’s total capital, and by paying attention to their best investments, we’ve unsheathed a number of investment strategies that have historically beaten Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).

Activision Blizzard, Inc. (NASDAQ:ATVI)

Just as key, bullish insider trading sentiment is a second way to analyze the financial markets. There are many incentives for a corporate insider to get rid of shares of his or her company, but only one, very clear reason why they would buy. Various academic studies have demonstrated the useful potential of this tactic if investors know where to look (learn more here).

Now that that’s out of the way, it’s important to examine the newest info about Activision Blizzard, Inc. (NASDAQ:ATVI).

What does the smart money think about Activision Blizzard, Inc. (NASDAQ:ATVI)?

Heading into Q3, a total of 35 of the hedge funds we track were long in this stock, a change of 3% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were boosting their stakes considerably.

According to our 13F database, Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, holds the most valuable position in Activision Blizzard, Inc. (NASDAQ:ATVI). Arrowstreet Capital has a $90.8 million position in the stock, comprising 0.7% of its 13F portfolio. Coming in second is Cliff Asness of AQR Capital Management, with a $63.5 million position; 0.2% of its 13F portfolio is allocated to the stock. Remaining hedgies that hold long positions include Ken Griffin’s Citadel Investment Group, Jim Simons’s Renaissance Technologies and Israel Englander’s Millennium Management.

As one would understandably expect, particular hedge funds were leading the bulls’ herd. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, assembled the largest position in Activision Blizzard, Inc. (NASDAQ:ATVI). Arrowstreet Capital had 90.8 million invested in the company at the end of the quarter. Cliff Asness’s AQR Capital Management also initiated a $63.5 million position during the quarter. The following funds were also among the new ATVI investors: Ken Griffin’s Citadel Investment Group, Jim Simons’s Renaissance Technologies, and Israel Englander’s Millennium Management.

How are insiders trading Activision Blizzard, Inc. (NASDAQ:ATVI)?

Legal insider trading, particularly when it’s bullish, is most useful when the company we’re looking at has seen transactions within the past half-year. Over the latest half-year time period, Activision Blizzard, Inc. (NASDAQ:ATVI) has experienced zero unique insiders buying, and 5 insider sales (see the details of insider trades here).

Discover how hedge fund piggybacking can benefit you

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!