Alphyn Capital Management, an investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A net return of 17.2% was recorded by the fund for the Q4 of 2020, above its S&P 500 benchmark that returned 11.7%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.
Alphyn Capital Management, in their Q4 2020 Investor Letter said that they maintained their position in Liberty Broadband Corporation (NASDAQ: LBRDA) and continues to be optimistic in the company. Liberty Broadband Corporation is a company that owns and at the same time, operates a variety of communications businesses. It currently has a $34.3 billion market cap. For the past 3 months, LBRDA delivered a decent 6.31% return and settled at $142.61 per share at the closing of January 27th.
Here is what Alphyn Capital Management has to say about Liberty Broadband Corporation in their investor letter:
“On November 17th, GCI Liberty sold its stake in Lending Tree for $1bn, a 6x return on its initial investment of $141m and used tax offsets at GCI to net $900m in after-tax proceeds (in a testament to John Malone’s tax management skills). It will use proceeds for debt reduction and share buybacks. On December 18th, GCI Liberty and Liberty Broadband announced the closing of their previously announced combination, tax efficiently eliminating one layer of the “double discount” to Charter Communications. Charter has continued to perform admirably, adding 2.3 million internet customers over the last 12 months (to Q3 2020) and increasing free cash flow by 65% to $5bn. We continue to ride the Liberty folks’ coat tails as they continue to demonstrate their superior capital allocation skills, for example initiating buybacks at a Charter “look through” price of $485 vs Charter’s price of $644 per share.”
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LBRDA delivered a decent 12.90% return in the past 12 months. Our calculations show that Liberty Broadband Corporation (NASDAQ: LBRDA) does not belong in our list of the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
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Disclosure: None. This article is originally published at Insider Monkey.
