Alphyn Capital Management, an investment management firm, released its second-quarter 2023 investor letter. The same can be downloaded here. The goal of the firm is to balance and avoid dependence on any single position by ensuring sufficient allocation that results in successful investments that can meaningfully contribute to overall returns. The firm withholds the performance report until the next quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Alphyn Capital Management highlighted stocks like Cogent Communications Holdings, Inc. (NASDAQ:CCOI) in the second quarter 2023 investor letter. Headquartered in Washington, the District of Columbia, Cogent Communications Holdings, Inc. (NASDAQ:CCOI) provides Internet access and Internet Protocol (IP) communications solutions. On July 5, 2023, Cogent Communications Holdings, Inc. (NASDAQ:CCOI) stock closed at $66.40 per share. One-month return of Cogent Communications Holdings, Inc. (NASDAQ:CCOI) was 5.73%, and its shares gained 8.57% of their value over the last 52 weeks. Cogent Communications Holdings, Inc. (NASDAQ:CCOI) has a market capitalization of $3.208 billion.
Alphyn Capital Management made the following comment about Cogent Communications Holdings, Inc. (NASDAQ:CCOI) in its second quarter 2023 investor letter:
“I initiated a position in Cogent Communications Holdings, Inc. (NASDAQ:CCOI), led by Dave Schaeffer, a remarkable founder-operator with technical acumen, astute business sense, and a long-term ownership mindset. Schaeffer has shown a propensity for making transformative bets while effectively managing risk and allocating capital shrewdly.
In 1999, Schaeffer secured $500 million to build an affordable, all-fiber internet network. The telecom market’s collapse in 2000 allowed Cogent to buy 13 companies, built at an initial cost of $14 billion, for just $60 million. Over the last few decades, Cogent has grown into a $3 billion company, producing $600m in revenue and nearly 40% EBITDA margins. Revenues have increased by 10% annually, and margins have expanded by 200bps annually. As a result, Cogent produces significant cash flow, which it has used to return over $1bn to shareholders; it has repurchased 22% of shares outstanding and increased dividends for the last 41 sequential quarters, with a current dividend yield of ~5.75%…” (Click here to read the full text)
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Cogent Communications Holdings, Inc. (NASDAQ:CCOI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Cogent Communications Holdings, Inc. (NASDAQ:CCOI) at the end of first quarter which was 18 in the previous quarter.
We discussed Cogent Communications Holdings, Inc. (NASDAQ:CCOI) in another article and shared the list of best communication services stocks to invest in. In addition, please check out our hedge fund investor letters Q2 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.
