Billionaire Stephen Mandel Likes Charter Communications

Page 1 of 2

One way to incorporate the views of hedge fund managers and other successful investors is by looking at 13F filings, either from an individual fund that has proven to be a strong performer or by pooling filings from a number of funds to look for a consensus view. For example, we have noticed that the most popular small cap stocks among hedge funds tend to outperform the market; the stocks in this category which we listed in our August newsletter produced an excess return of 18 percentage points between September and January (read more about our hedge fund strategies).

However, 13F filings are only released several weeks after the end of a quarter; more up-to-date information on hedge fund activities can be found by looking at 13D and 13G filings. Billionaire Stephen Mandel’s Lone Pine Capital recently disclosed ownership of 7.2 million shares of Charter Communications, Inc. (NASDAQ:CHTR) giving the fund 7.1% of the total shares outstanding. Our records show that Lone Pine had initiated a position in the company during Q3 2012 and owned about 330,000 shares at the end of September. See more of Mandel’s stock picks. Mandel is a Tiger Cub, having previously worked for legendary investor Julian Robertson at Tiger Management.

LONE PINE CAPITALCharter Communications, Inc. was the largest holding in Oaktree Capital’s portfolio at the end of the third quarter, with that fund reporting a position of almost 15 million shares at that time; Oaktree is managed by billionaire Howard Marks (find Oaktree’s favorite stocks). Billionaire George Soros increased his own stake in the company between July and September with his most recent 13F disclosing ownership of 2 million shares of the stock (check out more stocks Soros owned).

The TV, Internet, and phone company’s revenue increased 4% in the third quarter of 2012 compared to the same period in 2011. However, higher operating expenses resulted in Charter recording a roughly equal net loss as in Q3 of the previous year. This performance seems consistent with how Charter Communications, Inc. had done in the first half of 2012. Cash flow from operations was $1.4 billion in the first nine months of 2012, but nearly all of that cash was used on capital expenditures. At a market capitalization of almost $8 billion, Charter trades at high multiples on its earnings but in terms of cash flow it looks somewhat more reasonable priced at an EV/EBITDA multiple of 7.8x. It may be worth noting that Charter’s business has little dependence on the broader economy; in turn, movements in its stock price have a weak correlation with those of market indices as shown by the beta of 0.3.

How does Charter measure up against its peers?

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!