Here is What Hedge Funds Think About Liberty Broadband Corp (LBRDA)

Page 2 of 2

Since Liberty Broadband Corp (NASDAQ:LBRDA) has faced a declination in interest from the aggregate hedge fund industry, logic holds that there was a specific group of money managers that slashed their entire stakes by the end of the third quarter. Intriguingly, Robert Henry Lynch’s Aristeia Capital dumped the biggest investment of the “upper crust” of funds monitored by Insider Monkey, totaling an estimated $52 million in stock, and Andrew Goldman’s Seven Locks Capital Management was right behind this move, as the fund dumped about $8.9 million worth of shares. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 5 funds by the end of the third quarter.

Let’s also examine hedge fund activity in other stocks similar to Liberty Broadband Corp (NASDAQ:LBRDA). These stocks are The Hain Celestial Group, Inc. (NASDAQ:HAIN), AMC Networks Inc (NASDAQ:AMCX), Cytec Industries Inc (NYSE:CYT), and Liberty Broadband Corp (NASDAQ:LBRDK). This group of stocks’ market valuations match LBRDA’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HAIN 29 416389 14
AMCX 24 470590 5
CYT 34 849833 18
LBRDK 28 890000 -1

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $657 million. That figure was $322 million in LBRDA’s case. Cytec Industries Inc (NYSE:CYT) is the most popular stock in this table. On the other hand AMC Networks Inc (NASDAQ:AMCX) is the least popular one with only 24 bullish hedge fund positions. Liberty Broadband Corp (NASDAQ:LBRDA) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CYT might be a better candidate to consider a long position.

Page 2 of 2