October: The market rebounded strongly

The market rebounded strongly during October. However, the Gaming/Esport sector continues to be weaker than the market. This despite the fact that the growth figures look good and the companies are valued at historically low levels. This cancer trend has also continued in November, driven by Activision and Playtika. We have a position in Activision that we maintain. The company reported in line with expectations with weak results for the launches of Overwatch 2 and Diablo 4 from subsidiary Blizzard.

Blizzard has had major problems during the year with the management culture in the company and this delay creates further negative sentiment in the stock. However, we think that the company has addressed its problems and has a very strong product portfolio. The company is now trading at a 5-year low and has a strong cash flow with a net cash of 12% of the market value. The P/E ratio is 17 on this year's profit.

Playtika has moved around a bit in its product portfolio and also suffered a bit from Apple IDFA changes. However, we think that the company looks interesting as we believe that the market will continue to grow and that the company's growth will bounce back when the new games are released.

The fund closed up 3.21% in October and is now up 13.97% YTD.