Wasatch Global Investors, an investment management firm, published its “Wasatch Micro Cap Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The Wasatch Micro Cap Fund—Investor Class slipped -0.44% for the fourth quarter. The benchmark Russell Microcap® Index posted a larger decline of -2.66%, while small, mid, and large-cap benchmarks generally posted gains for the same period. With risk aversion and uncertainty elevated, cautious investors sought the perceived safety of larger companies. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Wasatch Micro Cap Fund, in its Q4 2021 investor letter, mentioned Motorsport Games Inc. (NASDAQ: MSGM) and discussed its stance on the firm. Motorsport Games Inc. is a Miami, Florida-based video game developer with a $34.6 million market capitalization. MSGM delivered a -12.65% return since the beginning of the year, while its 12-month returns are down by -85.32%. The stock closed at $2.97 per share on March 03, 2022.
Here is what Wasatch Micro Cap Fund has to say about Motorsport Games Inc. in its Q4 2021 investor letter:
“The greatest detractor from Fund performance for the quarter was Motorsport Games, Inc. (MSGM). The company develops racing video games for consoles, personal computers and mobile devices. Technical glitches during the prerelease period for the much-anticipated new game, NASCAR 21: Ignition, caused the share price of Motorsport Games to head lower in late October. The company has released patch updates to address the problems and is committed to improving the game with future patches in response to feedback from the gaming community. Additionally, a drawdown of the firm’s cash resources from recent acquisitions has increased uncertainty surrounding the stock and appears to be keeping some investors on the sidelines. With a more regular cadence of game releases starting in 2022, we expect to see more consistent results.”
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Our calculations show that Motorsport Games Inc. (NASDAQ: MSGM) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. MSGM was in 3 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 2 funds in the previous quarter. Motorsport Games Inc. (NASDAQ: MSGM) delivered a -63.11% return in the past 3 months.
In September 2021, we also shared another hedge fund’s views on MSGM 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.
