What Makes Liberty Broadband Corporation (LBRDA) a Quality Investment?
Madison Funds, managed by Madison Investment Management, released its “Madison Mid Cap Fund” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund increased by 9.6% compared to a 9.2% increase in the Russell Midcap Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Madison Funds highlighted stocks like Liberty Broadband Corporation (NASDAQ:LBRDA) in its Q4 2022 investor letter. Headquartered in Englewood, Colorado, Liberty Broadband Corporation (NASDAQ:LBRDA) is a communication company. On January 12, 2023, Liberty Broadband Corporation (NASDAQ:LBRDA) stock closed at $87.32 per share. One-month return of Liberty Broadband Corporation (NASDAQ:LBRDA) was 19.45%, and its shares lost 41.40% of their value over the last 52 weeks. Liberty Broadband Corporation (NASDAQ:LBRDA) has a market capitalization of $12.977 billion.
Madison Funds made the following comment about Liberty Broadband Corporation (NASDAQ:LBRDA) in its fourth-quarter 2022 investor letter:
“Liberty Broadband Corporation (NASDAQ:LBRDA) owns a 26% stake in cable company Charter Communications, which accounts for nearly all of its value. 2022 was not a kind year to Liberty Broadband/Charter as shares were down meaningfully as fundamentals across the cable industry deteriorated. Most notably, broadband subscriber growth slowed materially. Bears attribute the weakness to the surprisingly strong adds witnessed by fixed wireless competition from the likes of T-Mobile and Verizon, as well as growing overlap from competitors building fiber networks. Alternatively, bulls point to an inevitable slowdown given the pull forward of a large number of subscribers during the pandemic as well as the headwind from lower household move activity. While we believe the truth behind the driver of cable’s slowing broadband subscriber growth lies somewhere in between these views, we are optimistic that fundamentals will improve going forward. Charter is just beginning to more aggressively market a relatively unique internet/mobile phone bundle that is showing early success. Further, the company is expanding into underpenetrated rural areas as well as aggressively investing behind a network upgrade plan that will provide industry leading speeds, and at an investment cost that is much lower than competitors. With valuation multiples and investor sentiment at seemingly rock bottom levels, we believe there is an ample margin of safety underlying this high quality investment.”
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Liberty Broadband Corporation (NASDAQ:LBRDA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Liberty Broadband Corporation (NASDAQ:LBRDA) at the end of the third quarter which was 27 in the previous quarter.
We discussed Liberty Broadband Corporation (NASDAQ:LBRDA) in another article and shared Oakmark Funds’ views on the company. In addition, please check out our hedge fund investor letters Q4 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.
