Guru Steve Mandel (Trades, Portfolio) graduated from Dartmouth College in 1978, and later graduated with an MBA from Harvard. Mandel has been involved with hedge funds since 1990, when he worked at the legendary Tiger Management. He then left Tiger Management and formed his own hedge fund Lone Pine Capital in 1997. Mandel has a net worth of $2.3 billion.
In 2013, Forbes listed Mandel as one of the top 40 highest-earning hedge fund managers.Â
Mandel added 7,988,172 shares of Electronic Arts (EA, Financial) in the third quarter and currently holds 8,782,612 shares of the company.
Steven Cohen of Point 72 also added 646,500 shares of Electronic Arts, and now owns a total of 683,800 shares.
Below is a Peter Lynch Chart for Electronic Arts.
Electronic Arts is a major producer of video games such as The Sims, Madden NFL, EA SPORTS FIFA, Battlefield, Dragon Age and Plants vs. Zombies.
Electronic Arts develops software for Microsoft Xbox 360 and One and the Sony PlayStation 3 and 4, PCs, and mobile phones and tablets. It operates development studios in North America, Europe, Asia and Australia.
Electronic Arts has a market cap of $20.9 billion, a P/E ratio of 26.95, an enterprise value of $17.93 billion, a P/S ratio of 5.07 and a quick ratio of 1.42.
Mandel and Cohen may be betting on EA for several reasons:
Electronic Arts has been developing software since 1982 and they have a lot of experience in the video game industry.
Over the past three years, EPS has grown 128.4%, a higher growth rate than 96% of the companies in the gaming and multimedia industry.
Net margin is 19.38% compared to the industry median of 3.21%.
Electronic Arts is producing strong net revenues. In fiscal year 2015, Electronic Arts posted a net revenue of $4.5 billion.
Cheers to your investment success.
