Longleaf Partners, managed by Southeastern Asset Management, released its “Partners Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned -1.33% in the fourth quarter, compared to the S&P 500’s 2.41% return and Russell 1000 Value’s -1.98% return. For the year the fund returned 8.80% compared to 25.02% and 14.37% returns for the indexes. For more information on the fund’s best picks in 2024, please check its top five holdings.
Longleaf Partners Fund highlighted stocks like Liberty Broadband Corporation (NASDAQ:LBRDA), in the fourth quarter 2024 investor letter. Liberty Broadband Corporation (NASDAQ:LBRDA) is a company that engages in communications businesses. The one-month return of Liberty Broadband Corporation (NASDAQ:LBRDA) was 6.43%, and its shares lost 0.35% of their value over the last 52 weeks. On January 28, 2024, Liberty Broadband Corporation (NASDAQ:LBRDA) stock closed at $80.31 per share with a market capitalization of $11.527 billion.
Longleaf Partners Fund stated the following regarding Liberty Broadband Corporation (NASDAQ:LBRDA) in its Q4 2024 investor letter:
“Liberty Broadband Corporation (NASDAQ:LBRDA) – Time has told us that our decision to move on from internet and video distribution holding company Liberty Broadband was premature. We misjudged the business quality at our initial purchase in 2021, underestimating competition from fiber and wireless broadband providers. These challenges forced Charter Communications (of which Liberty Broadband owns 26%) to adjust its capital expenditures and share repurchases significantly while calling into question the business’s pricing power. After we sold, we were proven wrong in our belief that Liberty Media would not be able to quickly combine Liberty Broadband with Charter. While this merger will take time (likely into 2027), the announcement of the combination’s framework caused LBRDK/A’s stock price to increase. This was an example of excessive debt both influencing our initial buy decision (before we implemented our focus on P/EV) and then limiting our patience for a thesis to play out. These are important lessons that have made our portfolio better today.”
A technician in a telecom facility installing wireless routers and operating on a computer.
Liberty Broadband Corporation (NASDAQ:LBRDA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Liberty Broadband Corporation (NASDAQ:LBRDA) at the end of the third quarter which was 18 in the previous quarter. While we acknowledge the potential of Liberty Broadband Corporation (NASDAQ:LBRDA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Liberty Broadband Corporation (NASDAQ:LBRDA) and shared long-term stock picks of billionaire George Soros. In Q1 2024, Longleaf Partners Fund reduced its stake in Liberty Broadband Corporation (NASDAQ:LBRDA) due to its poor performance. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.