Alphyn Capital Management, an investment management firm, released its third-quarter 2023 investor letter. The same can be downloaded here. The Master Account of the fund returned -1.1% net in the third quarter compared to -3.3% for the S&P500 Index. As of September 30, 2023, the top ten holdings accounted for approximately 71% of the portfolio, and approximately 8.6% of the portfolio was held in cash. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Alphyn Capital Management highlighted stocks like Liberty Broadband Corporation (NASDAQ:LBRDK) in the third quarter 2023 investor letter. Headquartered in Englewood, Colorado, Liberty Broadband Corporation (NASDAQ:LBRDK) provides communications services. On November 24, 2023, Liberty Broadband Corporation (NASDAQ:LBRDK) stock closed at $83.53 per share. One-month return of Liberty Broadband Corporation (NASDAQ:LBRDK) was 3.30%, and its shares lost 6.02% of their value over the last 52 weeks. Liberty Broadband Corporation (NASDAQ:LBRDK) has a market capitalization of $12.202 billion.
Alphyn Capital Management made the following comment about Liberty Broadband Corporation (NASDAQ:LBRDK) in its Q3 2023 investor letter:
Liberty Broadband Corporation (NASDAQ:LBRDK): In the third quarter, Charter and Disney engaged in a highly publicized carriage dispute, resulting in a blackout of Disney channels, including ESPN, ABC, and FX, for Charter customers. This disruption deprived Charter customers of popular programming such as college football and “Monday Night Football.” Driven by years of declining video profitability, Charter resolved to challenge the ever-increasing programming costs and the common practice among content owners of bundling less-viewed channels with more popular ones while still charging full price.
While bundling and increasing content costs have been a significant factor in the rise of over-the-top (OTT) streaming services over the last few years, Charter has been relatively shielded, economically, from these issues due to the low profitability of video and its ability to generate high-margin revenue from broadband services. Nevertheless, video is an integral part of the total package of services the company offers its customers, including internet access and phone service, and helps with customer retention even if it is not profitable in and of itself. About a week into the dispute, Charter and Disney reached a compromise, which market participants took as an affirmation of Charter’s relatively strong negotiating position as a content distributor through its hard-to-replace cable assets.
In the short term, fixed wireless has posed a more significant challenge to cable operators than initially acknowledged, capturing many new customer additions in urban areas at the lower end of the market. However, the company’s government-subsidized rural expansion efforts and rapidly growing mobile segment offer ample growth opportunities to mitigate this threat. At the current single-digit FCF multiple, the market appears to be overstating the threat posed by fixed wireless.”
A close-up of a technician assembling a mobile wireless device.
Liberty Broadband Corporation (NASDAQ:LBRDK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held Liberty Broadband Corporation (NASDAQ:LBRDK) at the end of third quarter which was 56 in the previous quarter.
We discussed Liberty Broadband Corporation (NASDAQ:LBRDK) in another article and shared billionaire Paul Singer’s top holdings and recent moves. In addition, please check out our hedge fund investor letters Q3 2023 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.
