George Soros Stock Portfolio: Top 5 Stock Picks

3. Liberty Broadband Corporation (NASDAQ:LBRDA)

Number of Hedge Fund Holders: 27

Soros Fund Management’s Stake Value: $202,352,000

Liberty Broadband Corporation (NASDAQ:LBRDA) is a Colorado-based communications company that operates through GCI Holdings and Charter segments. On November 4, Liberty Broadband Corporation (NASDAQ:LBRDA) reported its Q3 results, announcing earnings per share of $2.15 and a revenue of $248 million, outperforming Wall Street estimates by $0.48 and $3.91 million, respectively. 

According to the 13F filings for the second quarter of 2022, the George Soros stock portfolio had 1.75 million shares of Liberty Broadband Corporation (NASDAQ:LBRDA), worth $202.35 million and representing 3.6% of the total holdings. 

On May 10, Deutsche Bank analyst Bryan Kraft maintained a Buy rating on Liberty Broadband Corporation (NASDAQ:LBRDA) but lowered the price target on the shares to $158 from $196 after the Q1 results.

Among the hedge funds tracked by Insider Monkey, 27 funds reported owning stakes worth $202.35 million in Liberty Broadband Corporation (NASDAQ:LBRDA), compared to 26 funds in the prior quarter. Boykin Curry’s Eagle Capital Management is the largest stakeholder of the company, with 8.30 million shares worth $960.2 million. 

Alphyn Capital made the following comment about Liberty Broadband Corporation (NASDAQ:LBRDA) in its Q3 2022 investor letter:

“In retrospect, I wish I had cut the position in Liberty Broadband Corporation (NASDAQ:LBRDA) more aggressively last quarter. Fears of fixed wireless and fiber competition have weighed heavily on Charter and Liberty’s share prices. Tom Rutledge’s unexpected early retirement from the CEO role has not helped matters.

I believe the sentiment is now overly pessimistic, and the valuation once again attractive. Revenue growth from broadband ads will likely stall as fixed wireless access programs take a bite out of cable subscribers over the next five years. 4 However, Charter has a fast-growing mobile phone business through an MVNO (mobile virtual network operator) agreement with Verizon. Given its cost-effective access to Verizon’s mobile telephony infrastructure, it provides a branded mobile phone service to retail customers at competitive rates. For example, Unlimited pricing starts at $29.99/month, including taxes and fees, vs. $35-55/month plus taxes and fees for Verizon’s plans.

Wireless generates approximately $725m in revenues for Charter per quarter, around 6% of the total, and is growing 40% per year. Should this continue, Wireless could return Charter to mid-single-digit revenue growth and “drive meaningful EBITDA for Charter,” as revenues scale over a low cost base. With approximately 25m non-Charter potential wireless customers within the area it serves, there is plenty of room for growth.”