FPA Crescent Fund Expects Growth in Charter Communications (CHTR)’s FCF

FPA Crescent Fund, an investment management company, recently published its second-quarter 2022 investor letter. A copy of the same can be downloaded here. The fund returned -9.32% in the second quarter and for the trailing 12 months, it declined by 10.69%. The top five performers provided 3.4% to the fund’s return. You can view the top 5 holdings of the fund to know its best picks in 2022.

In the Q2, 2022 investor letter, FPA Crescent Fund highlighted Charter Communications, Inc. (NASDAQ:CHTR) and explained its performance. Charter Communications, Inc. (NASDAQ:CHTR) is an American telecommunications and mass media company, that offers services under the brand name Spectrum. The company is headquartered in Stamford, Connecticut, and has a market capitalization of $74.38 billion. The one-month return of Charter Communications, Inc. (NASDAQ:CHTR) is -0.12% while its 12-month return dropped to -39.88%. The stock of Charter Communications, Inc. (NASDAQ:CHTR) closed at $462.98 per share on August 5, 2022.

Here is what the fund specifically said about Charter Communications, Inc. (NASDAQ:CHTR) in its Q2, 2022 investment letter:

“Charter Communications, Inc. (NASDAQ:CHTR) and Comcast, the Fund’s investment in the US cable industry, is an example of us leaning into fear. These investments have underperformed in the last year but still trade above the Fund’s cost basis. The industry has been plagued by fears of video cord cutting, and competition from 5G and Fiber to the Home. This allowed us to buy and to continue to hold both Comcast and Charter Communications. These businesses trade at what we believe are reasonable valuations and we think should have attractive growth in free cash flow over the next decade. We expect that they will allocate that free cash flow in the best interest of shareholders, given that they are controlled by owner-operators.”

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Although, FPA Crescent Fund is invested in Charter Communications, Inc. (NASDAQ:CHTR), the stock isn’t on the list of 30 Most Popular Stocks Among Hedge Funds. At the end of first quarter, 2022 Charter Communications, Inc. (NASDAQ:CHTR) was in 73 hedge fund portfolios which was consistent with the last quarter.

We discussed Charter Communications, Inc. (NASDAQ:CHTR) in another article,  published in July, that shared Andvari Associates’ views on the company.  In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

Disclosure: None. This article is originally published at Insider Monkey.