Here’s What Makes Electronic Arts (EA) a Good Investment Choice

Mayar Capital, an asset management firm, published its second-quarter 2022 investor letter – a copy of which can be downloaded here. For the three months ending March 31, 2021, Mayar Fund (Class A) was down 6.6% net of all expenses and fees, while the MSCI World Index declined by 5.2% in the same period. Since its inception in May 2011, Mayar Fund has seen a 198.7% increase versus a 180.9% increase for the MSCI. That corresponds to a 10.6% annualized rate of return for the Mayar Fund, compared to 10.1% for the MSCI. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Mayar Capital mentioned Electronic Arts Inc. (NASDAQ:EA) and explained its insights for the company. Founded in 1982, Electronic Arts Inc. (NASDAQ:EA) is a Redwood City, California-based video game company with a $37.0 billion market capitalization. Electronic Arts Inc. (NASDAQ:EA) delivered a 0.96% return since the beginning of the year, while its 12-month returns are down by -4.87%. The stock closed at $133.17 per share on August 17, 2022.

Here is what Mayar Capital has to say about Electronic Arts Inc. (NASDAQ:EA) in its Q2 2022 investor letter:

Electronic Arts is also developing as we would expect. The business enjoyed strong engagement last year with players of EA games spending 20% more time than even during 2020, helped by the delayed sales of the PS5 console. A potentially important development is the ongoing negotiation between EA and FIFA regarding the licensing of the FIFA brand for the EA football game. Strongly worded public statements have been slung from both parties as part of the negotiation process, but this could certainly be an opportunity for EA.”

Our calculations show that Electronic Arts Inc. (NASDAQ:EA) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Electronic Arts Inc. (NASDAQ:EA) was in 45 hedge fund portfolios at the end of the second quarter of 2022, compared to 41 funds in the previous quarter. Electronic Arts Inc. (NASDAQ:EA) delivered a 3.26% return in the past 3 months.

In November 2021, we also shared another hedge fund’s views on Electronic Arts Inc. (NASDAQ:EA) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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