Alluvium Asset Management, an asset management company, released its “Conventum – Alluvium Global Fund” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter, the Fund was up 1.3% in EUR terms and 5.4% in AUD terms but down 5.9% in USD terms. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Conventum – Alluvium Global Fund emphasized stocks such as Charter Communications, Inc. (NASDAQ:CHTR). Charter Communications, Inc. (NASDAQ:CHTR) is a broadband connectivity and cable operator company. The one-month return of Charter Communications, Inc. (NASDAQ:CHTR) was 10.41%, and its shares gained 27.25% of their value over the last 52 weeks. On March 7, 2025, Charter Communications, Inc. (NASDAQ:CHTR) stock closed at $379.52 per share with a market capitalization of $53.872 billion.
Conventum – Alluvium Global Fund stated the following regarding Charter Communications, Inc. (NASDAQ:CHTR) in its Q4 2024 investor letter:
“We discussed in our last report that Liberty Broadband’s 40.7% return in the September quarter reflected an impending deal (explained here) with its main investment, Charter Communications, Inc. (NASDAQ:CHTR). In early November Charter released its third quarter update, which the market (and us) viewed favourably, and Liberty’s share price rose 11.7% on the day. As a result, the Fund’s position in Liberty reached 8.4%. Cognisant of the 5/10/40 UCITS restrictions (yet wanting to maintain our position in the underlying assets) we sold a fair chunk of Liberty (to get it under 5%) and bought a little Charter. A short time later the companies reached agreement on the consolidation deal. The market’s reaction (Liberty’s share price fell 4.7% on the day, whereas Charter’s rose 3.6%) suggests this was less favourable to Liberty than anticipated (we suspect due to the long timeframe). And as Liberty fell 3.2% and Charter rose 5.8% over the quarter, the discount that Liberty trades (to the implied Charter price) has only widened. This is unwarranted in our view, particularly as one of Liberty’s businesses, GCI, is not part of the deal. Our focus is on having access to these assets at the best possible price. We are not perturbed by the deal, whether or not it consummates, nor its timeline. And, there are no additional costs to holding Liberty rather than Charter (nor any foregone dividends). On our analysis, these US broadband assets (via the Charter corporate structure) are providing a circa 9.0% earnings yield and 6.5% free cash flow yield, which we are confident will continue to grow. We are comfortable with the Fund’s 5.6% investment, as represented by its positions of 1.5% in Charter and 4.1% in Liberty.”
A line of cable boxes and modern televisions, representing the company’s video services.
Charter Communications, Inc. (NASDAQ:CHTR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 71 hedge fund portfolios held Charter Communications, Inc. (NASDAQ:CHTR) at the end of the fourth quarter compared to 61 in the third quarter. While we acknowledge the potential of Charter Communications, Inc. (NASDAQ:CHTR) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Charter Communications, Inc. (NASDAQ:CHTR) and shared the list of most undervalued large cap stocks to buy. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.