Exotic Alternative Investments by Kevin R. Mirabile;

Author:Kevin R. Mirabile; [Неизв.]
Language: eng
Format: epub
Publisher: Book Network Int'l Limited trading as NBN International (NBNi)

Who Invests?

Institutions will invest some of their traditional equity allocation to publicly listed sports, gaming and entertainment companies as part of their normal asset allocation process to stocks and stock indices. Institutional investors will own stakes in public companies like Sony or Nintendo and may have exposure to casinos and many types of media and telecommunications companies. They will over- or underweight the sector based on their research and relative risk and return perspectives. However, most institutions are not necessarily ready to jump into specific eSports, gaming and entertainment strategies or early-stage opportunities as a direct investment or even as part of their alternative’s allocation.

High-net-worth individuals and family offices are some of the biggest investors in traditional sports teams, as well as eSports franchises and gaming, whether in the form of private equity stakes or public equity stakes. Many athletes, entertainers and traditional franchise owners are prominent investors in eSports as well. Mark Cuban, who comes from the sports, technology and entertainment industry, is one example of a major investor in eSports. Cuban owns both the Dallas Mavericks and a number of eSports investments. According to a 2018 article by Tom Huddleston Jr., other notable investors in this space include high-profile former athletes like Michael Jordan, Stephen Curry, Steve Young and Alex Rodriquez and entertainers such as Drake, Ashton Kutcher and Jennifer Lopez. Michael Jordan owns a stake in the Miami Marlins along with Derek Jeter. Michael Jordan is also part of an investor group that acquired a stake in aXiomatic, which owns an eSports company called Team Liquid. The entertainer Drake owns a company that invests in an eSports organization called 100 Thieves, which invests in teams that compete in games such as League of Legends and Call of Duty.13

Retail investors interested in this space can get exposure to the sports and gaming industry by buying shares in companies like MSG, Activision Blizzard or ETFs such as GAMR. ETFs offer investors more diversified exposure to the sector than individual companies.

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