Oakmark Funds, an investment management firm, published its “Oakmark Fund” fourth quarter 2021 investor letter – a copy of which can be seen here. A return of 4.7% was reported by the fund in the fourth quarter of 2021, compared to the 11% gain of the S&P 500 Index for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Oakmark Fund, in its Q4 2021 investor letter, mentioned Take-Two Interactive Software, Inc. (NASDAQ: TTWO) and discussed its stance on the firm. Take-Two Interactive Software, Inc. is a New York, New York-based video game company with an $18.1 billion market capitalization. TTWO delivered a -11.52% return since the beginning of the year, while its 12-month returns are down by -21.49%. The stock closed at $157.25 per share on January 27, 2022.
Here is what Oakmark Fund has to say about Take-Two Interactive Software, Inc. in its Q4 2021 investor letter:
“Take-Two Interactive is one of the largest and most successful video game publishers in the U.S. Each year, people spend more of their leisure time playing video games, and with the increasing shifts to digital platforms, online multiplayer modes and in-game purchases, the video game publishing business has improved dramatically. These favorable trends, combined with strong execution under CEO Strauss Zelnick, have allowed the company to grow EPS by over 20% per year for the past decade. Recently, Take-Two embarked on an ambitious growth plan that has doubled the number of new games under development. Considering its successful track record of producing blockbuster games, we believe these investments are likely to pay off. But, in the near-term, these investments have the effect of reducing reported earnings. Adjusting for its promising investments and the cash on its balance sheet, we were able to purchase Take-Two at less than 14x our estimate of normalized earnings. Many other leading media companies trade at premiums to this multiple. We view this discount as an attractive opportunity to invest in an advantaged company, led by a management team that operates with an owner’s mindset.”
Our calculations show that Take-Two Interactive Software, Inc. (NASDAQ: TTWO) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. TTWO was in 53 hedge fund portfolios at the end of the third quarter of 2021, compared to 55 funds in the previous quarter. Take-Two Interactive Software, Inc. (NASDAQ: TTWO) delivered a -13.17% return in the past 3 months.
In November 2021, we also shared another hedge fund’s views on TTWO in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
