The undergraduate-run Investment Analysis Group (IAG) at the New York University Stern School of Business end its fall semester with some significant profit-taking. How did the group do it? It pumped up its growth 
-focused All-Star portfolio with video-game-related stocks.
Neal Sangani, the All-Star portfolio manager, says, "We started taking a look at [video-game stocks] because 'hardlines' [merchandise such as electronics and housewares] looked pretty strong for the holiday season."
Brian Crecente, managing editor of the video-game news Web site
Kotaku, supports Sangani's take on the video-game industry. According to Crecente, this year's holiday season has "one of the highest numbers of 'AAA' titles [the gaming equivalent of a blockbuster movie] to hit stores in quite some time."
Sangani expands on his rationale for investing in video-game companies: "It seemed like people were buying video games [this holiday season] instead of clothes, and we thought that was the one area that would hold up to weakness in consumer spending."
So how did Sangani and the IAG play the video-game boom?
Playing the Activision Deal
The
big news in the video game industry this month was the announcement on Dec. 3 that
Activision (ATVI Quote - Cramer on ATVI - Stock Picks) and Vivendi Games plan to merge and create the largest pure-play video game publisher, Activision Blizzard.
On Nov. 26 (a week before the deal news broke), the IAG added Activision to its All-Star portfolio for $18.93 per share.
Jonas Elmerraji
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