Top 5 Stock Picks of Alec Litowitz and Ross Laser’s Magnetar Capital

3. Activision Blizzard, Inc. (NASDAQ:ATVI)

Magnetar Capital’s Stake Value: $181,259,000
Percentage of Magnetar Capital’s 13F Portfolio: 1.93%
Number of Hedge Fund Holders: 80

Activision Blizzard, Inc. (NASDAQ:ATVI) is a Santa Monica, California-based video game holding corporation.

Activision Blizzard, Inc. (NASDAQ:ATVI) said on April 28 that its investors had accepted Microsoft Corporation (NASDAQ:MSFT)’s acquisition bid. On January 18, Microsoft revealed intentions to purchase Activision Blizzard in an all-cash transaction for $95.00 per share. The proposed deal is scheduled to conclude in Microsoft’s fiscal year ending June 30, 2023, subject to usual closing conditions and regulatory approval.

According to Insider Monkey’s Q1 2022 database, 80 hedge funds held stakes in Activision Blizzard, Inc. (NASDAQ:ATVI), compared with 70 hedge funds a quarter earlier. These stakes are collectively valued at over $9.48 billion, up from $3.66 billion worth of stakes held by hedge funds in Q4 2021.

Legendary investor and billionaire Warren Buffett’s Berkshire Hathaway is the biggest stakeholder of Activision Blizzard, Inc. (NASDAQ:ATVI) out of the 912 hedge funds tracked by Insider Monkey, as of the end of the first quarter. The Oracle of Omaha owns 64.32 million shares of the company, worth $5.15 billion.

Baron Partners Fund mentioned Activision Blizzard, Inc. (NASDAQ:ATVI) in its Q4 2021 investor letter. Here is what the fund said:

“The Fund’s Core Growth investments were negatively impacted by the market rotation to value-oriented businesses. Fundamentals for most of our Core Growth holdings remain strong. We exited two positions in this space, which included Activision Blizzard, Inc. We believe ESG concerns at Activision could be a negative for the company in the coming years.

Shares of Activision Blizzard, Inc., a leading video game publisher, detracted from performance. The company reported solid earnings results and maintained guidance for fiscal year 2021. However, the stock fell primarily due to a combination of increased concern around an employee lawsuit alleging sexual harassment and timing delays for two key Blizzard games (Diablo IV and Overwatch 2). We sold our position.”