Aristocrat (ALL) has been a core long position in the AIM Global High Conviction Fund since our inception two and half years ago. Last week Aristocrat announced FY17 profits and also announced a $1.3 billion acquisition. While all analysts, including ourselves, believed the results were better than expected, the stock fell 7% on the day of the result because of fears around the large-scale acquisition of Big Fish, Aristocrat’s second large-scale acquisition in 3 months.
Long-term investment opportunity
While the stock has paid its annual dividend, and started to recover in the week since the result and acquisition, I remain of the view this kneejerk share price pullback is an opportunity for short, medium and long-term investors. The AIM Global High Conviction Fund increased its holding in Aristocrat over the last week under $23.00.