Donville Kent Asset Management, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. Over the years, the fund has been picking stocks and mentioned that there are moments in time when unexpected opportunities present themselves. Some small and some big. In this edition of the ROE Reporter, the fund discusses how it currently finds itself in a historic opportunity. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Donville Kent Asset Management, in its Q4 2021 investor letter, mentioned NeoGames S.A. (NASDAQ:NGMS) and discussed its stance on the firm. Founded in 2014, NeoGames S.A. (NASDAQ:NGMS) is an Israel-based B2G and B2B technology and service provider with a $336.6 million market capitalization and is currently spearheaded by its CEO, Mac McMillan. NeoGames S.A. (NASDAQ:NGMS) delivered a -52.52% return since the beginning of the year, while its 12-month returns are down by -64.67%. The stock closed at $13.19 per share on March 11, 2022.
Here is what Donville Kent Asset Management has to say about NeoGames S.A. (NASDAQ:NGMS) in its Q4 2021 investor letter:
“NeoGames (NGMS) provides a comprehensive technology platform for stateregulated lotteries that provides everything they need in order to run their iLotteries (online games). Services include games, regulation & compliance, payment processing, risk management and player management. NeoGames has a highly profitable partnership with Pollard Banknote (NeoPollard) that complicates their reported financials. The economics of the partnership get reported as “Share in profits of joint venture” and their interest in the revenues doesn’t get reported as revenue on the financial statements. Combine these factors while taking into consideration the highly accretive acquisition of Aspire Global announced recently, which we feel will close imminently, and NeoGames is one of the highest growth and cheapest stocks in the market. We have been adding to this position during this correction.”
Our calculations show that NeoGames S.A. (NASDAQ:NGMS) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. NeoGames S.A. (NASDAQ:NGMS) was in 16 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 22 funds in the previous quarter. NeoGames S.A. (NASDAQ:NGMS) delivered a -49.66% return in the past 3 months. 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.
