What smart money is saying about Square Enix

Position history

Every position in Square Enix on record in the archive was reported in Q3 2026, across 2 fund letters, with no move described.

Fund activity · 2 positions

• HoldsLindsell Train Japanese Equity Fund

  August 2026

  “Disappointed as we are from five years of poor relative returns, investors often and rightfully ask us: “what will be the catalyst for improved relative performance?”. Candidly, we have to acknowledge that we have no crystal ball, nor specialist insight into an event or factor that will flip our performance from the malign to the benign. After all, such a reversal is just as likely to be something that impinges on the strong share price performance of companies that we don’t own. All that said, I do believe that underlying any catalyst will be evidence that our companies, despite operating in currently unfashionable business areas, are continuing to grow and compound cashflows, allowing them to invest, consolidate and build business value over time. Whilst market narratives and macroeconomic factors often drive share prices in the shorter term, over longer periods we continue to believe that fundamentals are the biggest determinant of investment returns. The market can often overlook the merits of investing in steadily growing businesses, as arguably demonstrated by recent experience, but history tells us that eventually, investors recognise the value that compounding business growth brings to a portfolio. It is true that often businesses with these characteristics become more attractive during periods of market stress. That may go some way in explaining why many of the companies we own had a welcome bounce over the summer. However, in our view, much more important to any sustained turnaround will be the underlying operating performance of the companies. From this perspective, the recent quarterly results announced by our 19 portfolio companies provided much encouragement. Usually there are a handful of companies that, for whatever reason, might report a disappointing quarter or two. And that’s to be expected, as we view compounding cashflows as a long-term endeavour, not one to be metronomically measured quarter by quarter. But this quarter’s announcements were unique in that all but two companies (Yakult and Tsutsumi Jewellery) reported either better-than-expected results or upwardly revised expectations for the rest of the year. Frankly, I can’t remember a better quarter for short-term business results and expectations. In particular, it seems that our consumer companies, having absorbed input cost increases and demand fluctuations brought about by lockdowns and Covid, are now growing again, helped increasingly by rising overseas sales. L I N D S E L L T R A I N J A P A N E S E E Q U I T Y F U N D M O N T H L Y R E P O R T | F A C T S H E E T Investment Team Commentary Elsewhere, Obic Business Consultants and Broadleaf are seeing sustained demand for their accounting and business management software. Square Enix, while refocussing its business on internally generated software, is having strategic pressure applied on it by activist shareholders, which is already beginning to reap better returns.”

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• HoldsLindsell Train Japanese Equity Fund

  July 2026

  “We once again reiterate our long argued view that the likes of Obic Business Consultants (OBC), Nintendo and Square Enix all have access to proprietary data, proprietary domain specificity or proprietary media content, which not only provides them with a formidable barrier to AI disintermediation, but also allows them to use AI to improve the content, products and services for existing and prospective customers.”

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  Square Enix