Jefferies Group, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. In the letter, the fund talked about the Metaverse and discussed some of the key companies involved in this virtual/augmented reality technology. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.
Jefferies Group, in its Q3 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 -based video game company with a $19 billion market capitalization. TTWO delivered a -20.53% return since the beginning of the year, while its 12-month returns are down by -5.56%. The stock closed at $164.31 per share on November 24, 2021.
Here is what Jefferies Group has to say about Take-Two Interactive Software, Inc. in its Q3 2021 investor letter:
“TakeTwo – TTWO (Buy, $231): TakeTwo’s IP Grand Theft Auto, Red Dead Redemption, and NBA2K are already on the road toward a “Metaverse”. They lack a true economy and many of the attributes needed today to be a Metaverse, but they have high social engagement, brand crossovers, and the start of an economy that makes sense. In our initiation we wrote about Red Dead Online potential – the ability to take on economic roles is already in the game (moonshiner, bounty hunter, trader, naturalist, & collector). Expanding into a bigger economy, cross branding, and expanding the roles/player base would both increase engagement & monetization, but also move it deeper into the Metaverse. NBA2K’s The City is even further along with many virtual stores of phyiscal brands from Jordan, Nike, Reebok, Gatorade, and many others already in the game. Even Jake from State Farm makes an appearance. This mode is built on social interaction and self-expression. Leveraging brands from the majors to smaller indie labels has been ongoing for the nearly a decade. An example of technology being a limiting factor – on current consoles TheCity is far more robust in capabilities, experiences, and number of players vs. older generations. In fact on older generations, the irony isn’t lost on us. The mode is called TheNeighborhood.”
Based on our calculations, Take-Two Interactive Software, Inc. (NASDAQ: TTWO) was not able to clinch a spot in 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 2.27% return in the past 3 months.
Disclosure: None. This article is originally published at Insider Monkey.