Here is What Hedge Funds Think About Charter Communications, Inc. (CHTR)

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We have processed the filings of the more than 873 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their June 30th holdings, data that is available nowhere else. Should you consider Charter Communications, Inc. (NASDAQ:CHTR) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.

Charter Communications, Inc. (NASDAQ:CHTR) was in 75 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 134. CHTR shareholders have witnessed an increase in activity from the world’s largest hedge funds recently. There were 74 hedge funds in our database with CHTR positions at the end of the first quarter. Our calculations also showed that CHTR isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).

In the eyes of most stock holders, hedge funds are viewed as slow, old investment tools of years past. While there are over 8000 funds in operation at the moment, Our researchers choose to focus on the moguls of this group, around 850 funds. These hedge fund managers shepherd most of all hedge funds’ total asset base, and by watching their unrivaled equity investments, Insider Monkey has come up with a few investment strategies that have historically beaten the S&P 500 index. Insider Monkey’s flagship short hedge fund strategy surpassed the S&P 500 short ETFs by around 20 percentage points annually since its inception in March 2017. Also, our monthly newsletter’s portfolio of long stock picks returned 185.4% since March 2017 (through August 2021) and beat the S&P 500 Index by more than 79 percentage points. You can download a sample issue of this newsletter on our website .

John Armitage of Egerton Capital

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Do Hedge Funds Think CHTR Is A Good Stock To Buy Now?

At the end of June, a total of 75 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 1% from the previous quarter. By comparison, 96 hedge funds held shares or bullish call options in CHTR a year ago. With hedge funds’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were upping their stakes considerably (or already accumulated large positions).

Among these funds, TCI Fund Management held the most valuable stake in Charter Communications, Inc. (NASDAQ:CHTR), which was worth $7492.6 million at the end of the second quarter. On the second spot was Berkshire Hathaway which amassed $3761.3 million worth of shares. Egerton Capital Limited, GQG Partners, and AltaRock Partners were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Triple Frond Partners allocated the biggest weight to Charter Communications, Inc. (NASDAQ:CHTR), around 24.85% of its 13F portfolio. AltaRock Partners is also relatively very bullish on the stock, setting aside 24.05 percent of its 13F equity portfolio to CHTR.

As industrywide interest jumped, key hedge funds have jumped into Charter Communications, Inc. (NASDAQ:CHTR) headfirst. Viking Global, managed by Andreas Halvorsen, established the most valuable position in Charter Communications, Inc. (NASDAQ:CHTR). Viking Global had $80.6 million invested in the company at the end of the quarter. James Crichton’s Hitchwood Capital Management also made a $31 million investment in the stock during the quarter. The other funds with new positions in the stock are Paul Tudor Jones’s Tudor Investment Corp, Joshua Pearl’s Hickory Lane Capital Management, and Karim Abbadi and Edward McBride’s Centiva Capital.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Charter Communications, Inc. (NASDAQ:CHTR) but similarly valued. We will take a look at Citigroup Inc. (NYSE:C), Union Pacific Corporation (NYSE:UNP), Royal Bank of Canada (NYSE:RY), Sea Limited (NYSE:SE), NextEra Energy, Inc. (NYSE:NEE), Anheuser-Busch InBev SA/NV (NYSE:BUD), and The Boeing Company (NYSE:BA). This group of stocks’ market values are closest to CHTR’s market value.

View table here if you experience formatting issues.

As you can see these stocks had an average of 59.1 hedge funds with bullish positions and the average amount invested in these stocks was $4228 million. That figure was $19487 million in CHTR’s case. Sea Limited (NYSE:SE) is the most popular stock in this table. On the other hand Royal Bank of Canada (NYSE:RY) is the least popular one with only 18 bullish hedge fund positions. Charter Communications, Inc. (NASDAQ:CHTR) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for CHTR is 55.9. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 24.1% in 2021 through September 20th and still beat the market by 6.9 percentage points. Hedge funds were also right about betting on CHTR as the stock returned 4.8% since the end of Q2 (through 9/20) and outperformed the market. Hedge funds were rewarded for their relative bullishness.

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

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