Activision Blizzard, Inc. (NASDAQ: ATVI) is one of the largest interactive gaming companies in the world. The company is the result of a 2008 merger between Vivendi and Activision, two of the largest video game producers at the time of the acquisition. Activision Blizzard's business is broken into three segments — Activision Publishing, Blizzard Entertainment, and King Digital Entertainment — with a robust portfolio of top-performing video game franchises. The company owns the rights to the Overwatch, Call of Duty, and World of Warcraft series of video games, among others.
Activision Blizzard reported Q3 2020 earnings on October 29, 2020. The international video game producer reported $1.95 billion in revenues for the quarter, compared to $1.28 billion over the same period last year. Here are the five largest mutual fund holders of Activision Blizzard as of October 30, 2020.
1. Vanguard Total Stock Market Index Fund (VTSMX)
The Vanguard Total Stock Mkt Idx Inv (VTSMX) was created in 1992 as a way for investors to gain exposure to the entire U.S. stock market, including small-, medium-, and large-cap stocks. The fund's most attractive attributes are its low fees and high diversity. The Total Stock Market Index Fund holds 21.95 million shares of Activision Blizzard as of June 2020, making it the company's largest mutual fund holder. The shares account for 2.84% of ATVI's total shares and make up 0.19% of the fund's portfolio.
VTSMX has total assets of $872.2 billion, a three-year annualized return of 11.53%, and an expense ratio of 0.14%.
2. American Funds Growth Fund of America (AGTHX)
The American Funds Growth Fund of America (AGTHX) is, as the name suggests, a growth fund that seeks capital gains. Launched in December 1973 as a subsidiary of Capital Group, the fund is flexible in its investments and pursues growth opportunities wherever they arise. With 19.88 million shares of Activision Blizzard, the Growth Fund of America is the company's second-largest mutual fund holder. The fund's investment in Activision Blizzard represents 2.58% of the company's outstanding shares and 0.71% of its total portfolio.
AGTHX has total assets of $225.3 billion, a three-year annualized return of 14.19% and an expense ratio of 0.64%.
3. Vanguard 500 Index Fund (VFINX)
The Vanguard 500 Index Index Fund (VFINX) is the oldest Vanguard fund available for personal investors and offers a low-cost way to access diversified exposure to the U.S. stock market. The fund is made up of the 500 largest American companies, which make up about 75% of the total U.S. equity market. As of June 2020, the fund holds 15.99 million shares of Activision Blizzard or roughly 2.07% of the company. This accounts for 0.23% of the fund's portfolio.
VFINX has total assets of $533.6 billion, a three-year annualized return of 12.13%, and an expense ratio of 0.14%.
4. Fidelity Contrafund (FCNTX)
As a growth fund, the Fidelity Contrafund (FCNTX) is focused on generating capital gains as opposed to income. Manager Will Danoff and his team choose stocks of companies with a market value of over $10 billion. The Fidelity Contrafund is the fourth-largest mutual fund investor in Activision Blizzard with 13.00 million shares, or 1.68% of the company, as of September 2020. The fund's investment in Activision Blizzard makes up 0.805% of its total portfolio.
FCNTX has total assets of $130.7 billion, a three-year annualized return of 18.47%, and an expense ratio of 0.85%.
5. Fidelity OTC Portfolio (FOCPX)
The investment goal of the Fidelity OTC Portfolio (FOCPX) is capital appreciation. The fund typically invests at least 80% of its assets in equities traded on the Nasdaq or over-the-counter (OTC) markets. This means that the Fidelity OTC Portfolio predominantly invests in small- and medium-sized companies, with a few blue-chip exceptions. The OTC Portfolio weighs in as Activision Blizzard's fifth-largest mutual fund holder with 10.20 million shares of the company. The shares representing about 1.34% of the company and 3.91% of the fund's total assets.
FOCPX has total assets of $19.6 billion, a three-year annualized return of 16.97, and an expense ratio of 0.88%.