5 Cheap Value Stocks to Buy According to Seth Klarman

4. The Liberty SiriusXM Group (NASDAQ:LSXMA)

Number of Hedge Fund Holders: 43    

PE Ratio: 14.90

Share Price as of December 26: $39.24

The Liberty SiriusXM Group (NASDAQ:LSXMA) engages in the entertainment business in the United States and Canada. On November 4, Liberty Media Corp posted earnings for the third quarter of 2022. The revenue over the period was $2.28 billion, an increase of 4% year-over-year. Net income was $247 million and diluted earnings per share were $0.06. At the end of the third quarter, Seth Klarman’s Baupost Group owned 13.8 million shares worth $519.6 million in The Liberty SiriusXM Group (NASDAQ:LSXMA).

At the end of the third quarter of 2022, 43 hedge funds in the database of Insider Monkey held stakes worth $1.96 billion in The Liberty SiriusXM Group (NASDAQ:LSXMA), compared to 44 in the previous quarter worth $1.7 billion.

In its Q4 2021 investor letter, Weitz Investment Management, an asset management firm, highlighted a few stocks and The Liberty SiriusXM Group (NASDAQ:LSXMA) was one of them. Here is what the fund said:

“Another Liberty company, The Liberty SiriusXM Group (NASDAQ:LSXMA), owns over 80% of SiriusXM Satellite Radio. We believe that SiriusXM is undervalued and that the Liberty SiriusXM structure allows us to own the company at a discount. Both Charter Communications and SiriusXM are growing nicely, generating prodigious amounts of free cash flow and buying back lots of their own stock. John Malone controls both of these Liberty securities, and we believe he will find ways to close the discounts and extract maximum value for shareholders. Both Liberty securities were stock market duds in 2021, but we expect them to be contributors in 2022 regardless of what the general market does.”