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Avenir Capital: Ignoring Cord-Cutting Fears and Buying Charter Communication (CHTR) Paid Off

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Jose Karlo Mari Tottoc
·3 min read
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Avenir Capital, an investment management firm recently published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 13.9% was recorded by the fund for the year end 2020, outperforming its MSCI ACWI benchmark that delivered a 6.5% return. You can see the fund's holding and take a look at its top bets for 2021.

Avenir Capital said in their letter that Charter Communications, Inc. (NASDAQ: CHTR) was one of their biggest gainers. Charter Communications, Inc. is a premier broadband company that currently has a $119.7 billion market cap. For the past 3 months, CHTR delivered a 0.85% return and settled at $617.65 per share at the closing of February 5th.

Here is what Avenir Capital has to say about Charter Communications, Inc. in their investor letter:

"Our third biggest gainer was Charter Communications, the U.S. broadband connectivity business. Our opportunity to buy Charter came in early 2018 when the business was sold off heavily on fears of cable TV cord cutting and the impact of streaming businesses such as Netflix on traditional cable. We felt the bulk of Charter’s underlying value came from its broadband internet business, a highly concentrated industry in which Charter holds a dominant position, not the traditional cable TV business. Charter’s share price has increased by 112% since our initial purchase at US$313 per share, including an increase of 35% in 2020 to end the year at US$665 per share."

Kappri/Shutterstock.com

Just recently, we published an article of Charter Communications, Inc. (NASDAQ: CHTR), featuring its CEO, Tom Rutledge talking about the company's Q4 2020 earnings.

CHTR delivered a 16.61% return in the past 12 months. Our calculations show that Charter Communications, Inc. (NASDAQ: CHTR) ranks 21st in our list of the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds https://youtu.be/OgBhPDmWMtI

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