Here’s Lindsell Train Global Equity Fund’s Comment on Nintendo Co., Ltd. (NTDOY)

Lindsell Train Ltd, an investment management company, has released its “Lindsell Train Global Equity Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The objective of the fund is to boost long-term Shareholders’ capital from an actively managed global equity portfolio, mainly on recognized exchanges in developed countries worldwide. The fund returned -2.0% in the quarter, outperforming the -4.7% return for the benchmark MSCI World Index.  In addition, you can check the top 5 holdings of the fund to know its best picks in 2025.

In its first-quarter 2025 investor letter, Lindsell Train Global Equity Fund highlighted stocks such as Nintendo Co., Ltd. (OTC:NTDOY). Nintendo Co., Ltd. (OTC:NTDOY) is a video game company that develops, manufactures, and sells home entertainment products. The one-month return of Nintendo Co., Ltd. (OTC:NTDOY) was 8.77%, and its shares gained 66.08% of their value over the last 52 weeks. On July 2, 2025, Nintendo Co., Ltd. (OTC:NTDOY) stock closed at $22.82 per share, with a market capitalization of $106.133 billion.

Lindsell Train Global Equity Fund stated the following regarding Nintendo Co., Ltd. (OTC:NTDOY) in its Q1 2025 investor letter:

“The cause of Nintendo Co., Ltd.’s (OTC:NTDOY) exuberant performance has of course been the build up to, and now the ultimate reveal of the Switch 2, its much-anticipated new flagship console. A number of aspects from the launch provide continued cause for optimism. Pricing for both the console and Nintendo’s first-party games was robust, and at the higher end of estimates, demonstrating the clear confidence the company has in the quality of its latest product offerings. There was an impressive line-up of third-party titles (Elden Ring, Cyberpunk 2077, Hogwart’s Legacy, Civilization VII), which should broaden consumer appeal further. Plus, a number of compelling new functionalities were introduced that will require a Nintendo Online subscription, which represents a healthy way for Nintendo to convert an increasing percentage of its consumer base to a more intimate relationship, with more data sharing, and regular subscription fees. We look forward to further incremental updates and reveals throughout the year in the lead up to the launch day, and beyond that, the all important year-end holiday season.”

A close up of a person’s hands using a home console gaming device.

Nintendo Co., Ltd. (OTC:NTDOY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 1 hedge fund portfolios held Nintendo Co., Ltd. (OTC:NTDOY) at the end of the first quarter, which was 1 in the previous quarter. While we acknowledge the potential of Nintendo Co., Ltd. (OTC:NTDOY) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of NTDOY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.