Should You Invest in Liberty Broadband Corporation (LBRDK)?
Ruane, Cunniff & Goldfarb, an investment adviser managing Sequoia Fund, released its Q4 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 13.31% compared to an 11.69% return for the S&P 500 Index. The fund generated a 27.83% return in 2023 compared to a 26.29% return for the index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Sequoia Fund featured stocks like Liberty Broadband Corporation (NASDAQ:LBRDK) in the fourth quarter 2023 investor letter. Headquartered in Englewood, Colorado, Liberty Broadband Corporation (NASDAQ:LBRDK) provides communications services. On March 20, 2024, Liberty Broadband Corporation (NASDAQ:LBRDK) stock closed at $57.23 per share. One-month return of Liberty Broadband Corporation (NASDAQ:LBRDK) was -6.78%, and its shares lost 26.74% of their value over the last 52 weeks. Liberty Broadband Corporation (NASDAQ:LBRDK) has a market capitalization of $8.188 billion.
Sequoia Fund stated the following regarding Liberty Broadband Corporation (NASDAQ:LBRDK) in its fourth quarter 2023 investor letter:
"By way of example, consider the following holdings: Rolls Royce, Charles Schwab, Elevance Health, Credit Acceptance, Capital One Financial, Liberty Broadband Corporation (NASDAQ:LBRDK), and Ashtead. Each of these companies trades for a low double-digit, or lower, multiple of our estimate of normalized earnings per share, yet each of them is capable of compounding earnings per share at a double-digit rate. At year-end 2023, these holdings accounted for almost a third of the Fund’s capital.
Additions in 2023 included Liberty Broadband, Charles Schwab, Elevance, and Capital One Financial. Liberty Broadband is notable because its stock price declined significantly in 2022 even as earnings per share rose. We added modestly to our position early last year, at roughly eight times our estimate of normalized free cash flow per share.
As a reminder, substantially all the value in Liberty Broadband resides in its stake in cable heavyweight Charter Communications. Admittedly, fundamentals at Charter have been tepid over the past several quarters, with broadband subscriber growth decelerating from mid-single digits to low-single digits. Some of this moderation may stem from the arrival of fixed wireless, which has intensified the battle for price-sensitive subscribers. However, the excess 5G wireless capacity on which fixed wireless relies can only serve a small fraction of the market. Meanwhile, Charter is experiencing record-low churn and pushing through low-single-digit price increases, suggesting that the deceleration in its broadband subscriber growth is due to the general maturation of the market, rather than competitive pressures…” (Click here to read the full text)
A technician at a site of a fiber connectivity service installation, using tools to install the high-speed data networking that the company offers.
Liberty Broadband Corporation (NASDAQ:LBRDK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Liberty Broadband Corporation (NASDAQ:LBRDK) was held by 53 hedge fund portfolios, compared to 52 in the previous quarter, according to our database.
We discussed Liberty Broadband Corporation (NASDAQ:LBRDK) in another article and shared the list of biggest telecom companies in the US. In addition, please check out our hedge fund investor letters Q4 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.
