Idea Presented At Capitalize For Kids Investors Conference Up 84% In 8 Months

As you know, Capitalize for Kids brings the world’s best money managers to Toronto to pitch their top ideas. At last year’s conference, FrontFour Capital’s David Lorber pitched long on Ubisoft (EN Paris: UBI). Since his presentation on September 30th, 2015, UBI is up 84%. The stock outperformed FrontFour’s €32 per share price target in 8 months.

Support for FrontFour’s recommendation included a shift to higher-margin digital sales, a solid game lineup in their pipeline and strong industry tailwinds.  Ubisoft was also priced significantly cheaper than competitors Electronic Arts (NASDAQ: EA) and Activision Blizzard (NASDAQ: ATVI).  In Mr. Lorber’s closing comments he stated that it is likely with large capitalization media conglomerates in a stagnant state they would look to consolidate the growing hit driven video game industry.  Shortly after the conference in October 2015, Vivendi (EN Paris: VIV) announced that it had acquired a stake in Ubisoft and today owns over 17%.  It is likely Vivendi will look to take control of Ubisoft as they recently did with Gameloft SE (EN Paris: GME).

FrontFour Capital continues to hold Ubisoft today. “While we have trimmed our position given the stock’s appreciation, Ubisoft is poised for continued growth as the shift to digital sales is just now ramping and new game launches are slated for later this year.  In addition, Ubisoft is poised to benefit should virtual reality gain traction and optionality remains on a full Company takeover,” said David Lorber, Co-Founder at FrontFour.

Over 20 top money managers will present more great ideas at the 2016 Capitalize for Kids Investors Conference. This year’s lineup includes Third Point’s Dan Loeb, AQR Capital’s Cliff Asness and Starboard Value’s Jeffrey Smith. The conference takes place in Toronto on October 26th and 27th, 2016. Early bird registration is now open.

Idea Presented At Capitalize For Kids Investors Conference Up 84% In 8 Months

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