Is Liberty Broadband (LBRDA) A Smart Long-Term Buy?

Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, published its “Longleaf Partners Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. Longleaf Partners Fund added 6.18% in the fourth quarter, taking returns for the full year to 23.58%, well ahead of its absolute return goal. However, the S&P 500 rallied 11.03% in the fourth quarter, taking the index’s full-year returns to 28.71%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Longleaf Partners Fund, in its Q4 2021 investor letter, mentioned Liberty Broadband Corporation (NASDAQ: LBRDA) and discussed its stance on the firm. Liberty Broadband Corporation is an Englewood, Colorado-based communication company with a $26.0 billion market capitalization. LBRDA delivered a -9.78% return since the beginning of the year, while its 12-month returns are down by -0.14%%. The stock closed at $145.16 per share on February 25, 2022.

Here is what Longleaf Partners Fund has to say about Liberty Broadband Corporation in its Q4 2021 investor letter:

“We swapped out of Comcast into Liberty Broadband in the quarter, as Comcast neared its appraisal, while misguided shortterm fears about slowing broadband subscriber additions miss Liberty Broadband’s latent pricing power and its best-in-class capital allocation, thanks to Liberty Media’s effective control. The portfolio activity section in our last several letters has highlighted our growing ondeck list, and we were able to act on those opportunities to put cash to work in the fourth quarter. We initiated three new holdings, which we are still building to various degrees. We already discussed the Liberty Media for Comcast swap above, where we now have a better company on Business, People and Price and more opportunities to close the P/V gap sooner rather than later.”

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Our calculations show that Liberty Broadband Corporation (NASDAQ: LBRDA) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. LBRDA was in 22 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 24 funds in the previous quarter. Liberty Broadband Corporation (NASDAQ: LBRDA) delivered a -7.90% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on LBRDA in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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