Hayden Capital, an investment management firm, released its second-quarter 2024 investment letter. A copy of the letter can be downloaded here. Driven by the core positions, the portfolio rose in the past few months. The firm is currently seeing signs of market stabilization following the erratic macroeconomic environment of the past few years. In the second quarter, the portfolio generated a 7.0% return compared to a 4.3% return for the S&P 500 and a 2.9% return for the MSCI World Index. The firm’s assets are invested in Asia at approximately 57%, in North America at approximately 41%, and the remainder in cash. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Hayden Capital highlighted stocks like Unity Software Inc. (NYSE:U), in the second quarter 2024 investor letter. Unity Software Inc. (NYSE:U) operates a platform that offers real-time 3D content and experiences. The one-month return of Unity Software Inc. (NYSE:U) was 12.89%, and its shares lost 54.84% of their value over the last 52 weeks. On September 9, 2024, Unity Software Inc. (NYSE:U) stock closed at $17.17 per share with a market capitalization of $6.814 billion.
Hayden Capital stated the following regarding Unity Software Inc. (NYSE:U) in its Q2 2024 investor letter:
“Another tailwind was Unity Software Inc.’s (NYSE:U) botched rollout of their “Run Time Fees”. Essentially Unity (Applovin’s main competitor) tried to change their business model, and their customers said “no, thank you”.
Unity is one of two main gaming engines (alongside Epic’s Unreal Engine), upon which all games are built. Unreal Engine is traditionally used for AAA games that require demanding graphics and physics calculations, while Unity is for “light-weight” games and simple to use – perfect for mobile.
Unity was originally launched in 2005 as a way to “democratize game development”, and to serve smaller developers. As such, the cost has always been low (or free), with Unity only launching its seat-based subscription model in 2016. This meant that gaming studios paid Unity based on how many employees were using the product, rather than how many people downloaded / played the games developed on Unity (as Unreal Engine does)…” (Click here to read the full text)
A close-up of a hand holding a mobile device with a gaming app open on the screen.
Unity Software Inc. (NYSE:U) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Unity Software Inc. (NYSE:U) at the end of the second quarter which was 35 in the previous quarter. While we acknowledge the potential of Unity Software Inc. (NYSE:U) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Unity Software Inc. (NYSE:U) and shared the list of stocks to buy and sell before third quarter according to Jim Cramer. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.