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Glaxis Capital Betting Big On Video Games

Paul Holland and Matthew Miller founded Glaxis Capital Management in 2005. Glaxis is based in Sarasota, Florida and has $98.52 million in assets under management and $106.11 million in regulatory assets under management (which includes gross assets, capital commitments and certain proprietary accounts). The fund employs two strategies to manage its clients’ money: global macroeconomic and long-biased absolute return. Glaxis’ strategies use a macroeconomic top-down analysis and microeconomic bottom-up analysis to identify profitable investment opportunities.

In its latest 13F filing, Glaxis Capital disclosed an equity portfolio worth $65.65 million, held as of the end of September. During the third quarter, the fund added 15 new positions and closed its stakes in 13 companies. Its portfolio also showed that Glaxis Capital has a lot of exposure to technology stocks, which amass over 70% of its 13F portfolio’s value.

Glaxis’ tech investments seem to be paying off well. We estimate a fund’s returns by taking into account its long positions in companies worth over $1 billion as reported in 13F filings and calculate their weighted average returns. According to our calculations, Glaxis’ stock picks returned 5.7% during the second quarter and were 14.60% in the green in the first six months of 2017. In this way, Glaxis outperformed the S&P 500 by around 6.40 percentage points..

The fund’s latest 13F filing also showed that Glaxis’ raised its position in two video game companies: Electronic Arts Inc. (NASDAQ:EA) and Activision Blizzard, Inc. (NASDAQ:ATVI). Both companies have some very promising titles expected this year and the whole industry is growing at a fast pace. According to the Entertainment Software Association, 67% of households own a device that is used to play videogames and consumers spent $30.4 billion on games last year. The developments in the VR space will define the video game space in the next year, as VR headsets become better and more affordable. However, big video game companies aren’t interested in VR for now and expect to get in the space in a couple of years, once hardware manufacturers improve the technology and adoption of headset rises.

With this in mind, let’s take a closer look at five tech and video game stocks that Glaxis Capital Management is bullish on.

In Take Two Interactive Software Inc (NASDAQ:TTWO), Glaxis Capital cut its position by 16% during the third quarter, disclosing a $1.02 million holding that contains 10,000 shares. Take Two Interactive Software Inc (NASDAQ:TTWO)’s stock has surged by over 145% in the last year as it was helped by some successful releases, such as Grand Theft Auto V, which is one of the best-selling video games of all time.

Next year, Take Two Interactive Software Inc (NASDAQ:TTWO) is expected to release Red Dead Redemption 2, the sequel to the popular Western-based action game released in 2010. The game is highly hyped in the gaming community. Recently, the company also released NBA 2K18, which is expected to become a very popular e-sports title, given the popularity of the previous year’s version, 2K17, which is Take Two’s most popular e-sports game ever, with 8.5 million copies sold by August.

On the next page, we are going to take a closer look at four other tech stocks that Glaxis Capital is bullish on and in which it boosted its holdings during the third quarter.

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