Activision Blizzard, Inc. (ATVI)’s stock Jumps On Q2 Beat & Guidance Increase

Hedge fund activity in Activision Blizzard, Inc. (NASDAQ:ATVI)

What do we mean by hedge funds foreseeing this positive quarter by Activision Blizzard, Inc. (NASDAQ:ATVI)? Based on indicators followed by Insider Monkey, there was a positive sentiment among hedge funds in the digital entertainment firm by the end of the first quarter, as a total of 41 of the hedge funds we track were bullish, up from 38 in the fourth quarter. More telling is the 37.59% quarter-over-quarter increase of hedge fund holdings to $1.02 billion, while the stock only grew in value by 12.78%.

Philippe Laffont‘s Coatue Management held the largest position in Activision Blizzard, Inc. (NASDAQ:ATVI) by the end of the first three months of the year with a stake of about 6.67 million shares. Kensico Capital, managed by Michael Lowenstein, held some 5.7 million shares. Israel Englander’s Millennium Management, John Armitage’s Egerton Capital Limited and Panayotis Takis Sparaggis’ Alkeon Capital Management were also bullish on Activision Blizzard. It should be noted that Kensico Capital established its stake in the firm just in the first quarter. John Armitage’s Egerton Capital Limited, Curtis MacNguyen’s Ivory Capital (Investment Mgmt), Nick Niell’s Arrowgrass Capital Partners, and Guy Shahar’s DSAM Partners also initiated stakes in Activision Blizzard in the first quarter.

Due to the firm’s solid performance in the second quarter and its raised guidance coupled with the world’s best money managers being confident in the stock, we consider it is worth going long Activision Blizzard, Inc. (NASDAQ:ATVI) at the moment.

Disclosure: None