Here’s Why Giverny Capital Exited its Liberty Broadband (LBRDA) Stake

Giverny Capital Asset Management LLC recently published its second quarter investor letter 2022, which can be downloaded here.  The fund’s model portfolio returns declined by 18.48% net of fees in the second quarter of 2022. The current events in the market influenced the stocks’ short-term prices. The fund generated an annualized return of 17.02% over the last nine quarters, net of fees. You can check the top 5 holdings of the fund to see its best picks for 2022.

In the second quarter 2022 investor letter, Giverny Capital Asset Management mentioned that it exited Liberty Broadband Corporation (NASDAQ:LBRDA). Liberty Broadband Corporation (NASDAQ:LBRDA) is a communication business provider and has a market capitalization of $19.494 billion. The company operates in GCI Holdings and Charter segments. The one-month return of Liberty Broadband Corporation (NASDAQ:LBRDA) is 0.25% while its 12-month return dropped to -37.17%. The stock of Liberty Broadband Corporation (NASDAQ:LBRDA) closed at $107.93 per share on July 29, 2022.

Here is what Giverny Capital Asset Management specifically said about Liberty Broadband Corporation (NASDAQ:LBRDA):

“Liberty Broadband Corporation (NASDAQ:LBRDA) is a holding company whose primary asset is shares in the cable and broadband Internet service provider Charter. I like the Charter business – broadband internet service is essentially an unregulated utility – and it hurt to sell Liberty at what feels like a depressed price. But Charter grows modestly and uses debt to boost its returns to shareholders. Specifically, it borrows heavily to finance a large stock buyback. If the economy were to deteriorate for a long time – which is not necessarily what I expect to happen – that debt could become a burden. I believe the businesses I bought will have better organic growth and be less reliant on financial engineering than Charter/Liberty Broadband.”

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As per our research, Liberty Broadband Corporation (NASDAQ:LBRDA) didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our records, Liberty Broadband Corporation (NASDAQ:LBRDA) was in 26 hedge fund portfolios at the end of the first quarter of 2022 compared to 22 in the previous quarter. Liberty Broadband Corporation (NASDAQ:LBRDA) shares lost 35.58% of their value over the last 52 weeks.

Earlier this month, we published another article on Liberty Broadband Corporation (NASDAQ:LBRDA). You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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