Alphyn Capital Management, an investment management firm, released its third-quarter 2022 investor letter. The same can be downloaded here. In the third quarter, the fund returned -10.95% net compared to -4.88% return for the S&P 500 Index. Year-to-date the fund returned -34.2% compared to -23.9% return for the S&P500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Alphyn Capital discussed stocks like Liberty Broadband Corporation (NASDAQ:LBRDA) in the Q3 2022 investor letter. Based in Englewood, Colorado, Liberty Broadband Corporation (NASDAQ:LBRDA) operates a communication business that operates through GCI Holdings and Charter segments. On October 21, 2022, Liberty Broadband Corporation (NASDAQ:LBRDA) stock closed at $75.27 per share. One-month return of Liberty Broadband Corporation (NASDAQ:LBRDA) was -2.25% and its shares lost 56.38% of their value over the last 52 weeks. Liberty Broadband Corporation (NASDAQ:LBRDA) has a market capitalization of $11.551 billion.
Alphyn Capital made the following comment about Liberty Broadband Corporation (NASDAQ:LBRDA) in its Q3 2022 investor letter:
“In retrospect, I wish I had cut the position in Liberty Broadband Corporation (NASDAQ:LBRDA) more aggressively last quarter. Fears of fixed wireless and fiber competition have weighed heavily on Charter and Liberty’s share prices. Tom Rutledge’s unexpected early retirement from the CEO role has not helped matters.
I believe the sentiment is now overly pessimistic, and the valuation once again attractive. Revenue growth from broadband adds will likely stall as fixed wireless access programs take a bite out of cable subscribers over the next five years. 4 However, Charter has a fast-growing mobile phone business through an MVNO (mobile virtual network operator) agreement with Verizon. Given its cost-effective access to Verizon’s mobile telephony infrastructure, it provides a branded mobile phone service to retail customers at competitive rates. For example, Unlimited pricing starts at $29.99/month, including taxes and fees, vs. $35-55/month plus taxes and fees for Verizon’s plans.
Wireless generates approximately $725m in revenues for Charter per quarter, around 6% of the total, and is growing 40% per year. Should this continue, Wireless could return Charter to mid-single-digit revenue growth and “drive meaningful EBITDA for Charter,” as revenues scale over a low cost base. With approximately 25m non-Charter potential wireless customers within the area it serves, there is plenty of room for growth.”
Photo by Mika Baumeister on Unsplash
Liberty Broadband Corporation (NASDAQ:LBRDA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Liberty Broadband Corporation (NASDAQ:LBRDA) at the end of the second quarter which was 26 in the previous quarter.
We discussed Liberty Broadband Corporation (NASDAQ:LBRDA) in another article and shared Longleaf Partners’ views on the company. In addition, please check out our hedge fund investor letters Q3 2022 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.
