In this article we will analyze whether Liberty Broadband Corp (NASDAQ:LBRDK) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There’s no better way to get these firms’ immense resources and analytical capabilities working for us than to follow their lead into their best ideas. While not all of these picks will be winners, our research shows that these picks historically outperformed the market by double digits annually.
Is Liberty Broadband (LBRDK) stock a buy or sell? Money managers were getting more optimistic. The number of bullish hedge fund bets inched up by 24 in recent months. Liberty Broadband Corp (NASDAQ:LBRDK) was in 80 hedge funds’ portfolios at the end of December. The all time high for this statistic is 58. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that LBRDK isn’t among the 30 most popular stocks among hedge funds (click for Q4 rankings). There were 56 hedge funds in our database with LBRDK positions at the end of the third quarter.
At the moment there are numerous indicators investors put to use to assess publicly traded companies. A pair of the less known indicators are hedge fund and insider trading indicators. Our experts have shown that, historically, those who follow the best picks of the best hedge fund managers can outpace the market by a healthy amount (see the details here).
George Soros of Soros Fund Management
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Do Hedge Funds Think LBRDK Is A Good Stock To Buy Now?
At the end of the fourth quarter, a total of 80 of the hedge funds tracked by Insider Monkey were long this stock, a change of 43% from one quarter earlier. By comparison, 46 hedge funds held shares or bullish call options in LBRDK a year ago. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were adding to their stakes meaningfully (or already accumulated large positions).
Among these funds, Eagle Capital Management held the most valuable stake in Liberty Broadband Corp (NASDAQ:LBRDK), which was worth $1304.1 million at the end of the fourth quarter. On the second spot was Soros Fund Management which amassed $836.5 million worth of shares. FPR Partners, Stockbridge Partners, and Cat Rock Capital were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Makaira Partners allocated the biggest weight to Liberty Broadband Corp (NASDAQ:LBRDK), around 33.52% of its 13F portfolio. Cat Rock Capital is also relatively very bullish on the stock, dishing out 29.19 percent of its 13F equity portfolio to LBRDK.
Now, specific money managers were breaking ground themselves. Dorsal Capital Management, managed by Ryan Frick and Oliver Evans, assembled the largest position in Liberty Broadband Corp (NASDAQ:LBRDK). Dorsal Capital Management had $126.7 million invested in the company at the end of the quarter. Paul Tudor Jones’s Tudor Investment Corp also made a $72.7 million investment in the stock during the quarter. The following funds were also among the new LBRDK investors: Gaurav Kapadia’s XN Exponent Advisors, Robert Henry Lynch’s Aristeia Capital, and Doug Silverman and Alexander Klabin’s Senator Investment Group.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Liberty Broadband Corp (NASDAQ:LBRDK) but similarly valued. These stocks are IHS Markit Ltd. (NASDAQ:INFO), SYSCO Corporation (NYSE:SYY), Freeport-McMoRan Inc. (NYSE:FCX), Liberty Broadband Corp (NASDAQ:LBRDA), Biogen Inc. (NASDAQ:BIIB), The Trade Desk, Inc. (NASDAQ:TTD), and The Bank of New York Mellon Corporation (NYSE:BK). This group of stocks’ market values resemble LBRDK’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| INFO | 59 | 2489276 | 15 |
| SYY | 40 | 2513070 | 7 |
| FCX | 61 | 2664729 | 4 |
| LBRDA | 26 | 908617 | 1 |
| BIIB | 63 | 2752928 | 4 |
| TTD | 35 | 1195309 | 12 |
| BK | 47 | 4689872 | -1 |
| Average | 47.3 | 2459114 | 6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 47.3 hedge funds with bullish positions and the average amount invested in these stocks was $2459 million. That figure was $7271 million in LBRDK’s case. Biogen Inc. (NASDAQ:BIIB) is the most popular stock in this table. On the other hand Liberty Broadband Corp (NASDAQ:LBRDA) is the least popular one with only 26 bullish hedge fund positions. Compared to these stocks Liberty Broadband Corp (NASDAQ:LBRDK) is more popular among hedge funds. Our overall hedge fund sentiment score for LBRDK is 90. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 30 most popular stocks among hedge funds returned 81.2% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 26 percentage points. These stocks gained 7% in 2021 through March 12th and still beat the market by 1.6 percentage points. Unfortunately LBRDK wasn’t nearly as popular as these 30 stocks and hedge funds that were betting on LBRDK were disappointed as the stock returned -3.1% since the end of the fourth quarter (through 3/12) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 30 most popular stocks among hedge funds as most of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
