Electronic Arts Inc. (EA): Are Hedge Funds Right About This Stock?

How are hedge funds trading Electronic Arts Inc. (NASDAQ:EA)?

Heading into 2016, a total of 57 of the hedge funds tracked by Insider Monkey were bullish on this stock, an increase of 12% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Stephen Mandel’s Lone Pine Capital has the biggest position in Electronic Arts Inc. (NASDAQ:EA), worth close to $442.8 million, corresponding to 1.9% of its total 13F portfolio. Sitting at the No. 2 spot is Coatue Management, led by Philippe Laffont, holding a $324.1 million position; 3.2% of its 13F portfolio is allocated to the company. Remaining peers that are bullish comprise Cliff Asness’s AQR Capital Management, Ken Griffin’s Citadel Investment Group and D.E. Shaw & Co. L.P., founded by David E. Shaw.

As industrywide interest jumped, key hedge funds have been driving this bullishness. Newbrook Capital Advisors, managed by Robert Boucai, assembled the largest position in Electronic Arts Inc. (NASDAQ:EA). Newbrook Capital Advisors had $60.6 million invested in the company at the end of the quarter. Guy Shahar’s DSAM Partners also initiated a $33.2 million position during the quarter. The following funds were also among the new EA investors: Kamyar Khajavi’s MIK Capital, Clint Murray’s Lodge Hill Capital, and Louis Bacon’s Moore Global Investments.

The next page of this article covers the hedge fund activity in a few companies with market capitalizations similar to EA’s market cap.