Swiss Asset Manager Pictet Buys into Chinese Video Game Maker Behind ‘Knives Out’, Sells Tencent Stock

Swiss asset manager Pictet has been buying up shares in Chinese online video game developer NetEase, while taking a profit on Tencent Holdings, as the technology sector is now trading at a higher premium than overall global markets, according to Nolan Hoffmeyer, senior investment manager with Pictet’s thematic equities team.

NetEase, the developer of popular video game Knives Out, was weak in the first quarter because it did not release any major titles, meaning that unlike some technology companies it was not trading at very high valuations, said Hoffmeyer. Moreover, its video game pipeline is expected to improve this year, while its revenue was still growing by close to 30 per cent.