Alphyn Capital Management, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. A quarterly portfolio net return of -13.4% was recorded by the fund for the first quarter of 2022, compared to its benchmark, the S&P 500 TR Index which delivered a -4.6% return for the same period. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Alphyn Capital Management mentioned Liberty Broadband Corporation (NASDAQ:LBRDA) and explained its insights for the company. Founded in 2014, Liberty Broadband Corporation (NASDAQ:LBRDA) is an Englewood, Colorado-based media company with a $19.6 billion market capitalization. Liberty Broadband Corporation (NASDAQ:LBRDA) delivered a -29.42% return since the beginning of the year, while its 12-month returns are down by -27.98%. The stock closed at $113.56 per share on April 28, 2022.
Here is what Alphyn Capital Management has to say about Liberty Broadband Corporation (NASDAQ:LBRDA) in its Q1 2022 investor letter:
“We part-financed the additions to Amazon and Wayfair by trimming some Liberty Broadband. Liberty Broadband is a HoldCo and tracking stock whose primary holding is Charter Communications. Charter benefits from its extensive network of cable assets that can provide higher bandwidth internet at better prices than offerings from traditional telecom and satellite carriers. Moreover, with excellent management and capital stewardship, Charter has increased its high-margin broadband subscriber base despite losing some video subscribers to “cord-cutting.”
Nevertheless, competition is intensifying, with telecom companies launching aggressive Fiber-To-The-Home upgrade plans and new entrants emerging with Fixed Wireless technologies. Cable’s co-axial lines are, for once, the inferior technology compared to FTTH. While Charter has many ways to upgrade its lines to remain competitive in the medium term, it no longer has a distinct advantage. As a result, in markets with fiber competition, cable companies typically have a 50% market share vs. the 80% market share they enjoy without fiber competition.
With Fixed Wireless, Cable has a strong advantage in owning the network for internet backhaul, but it is more difficult to predict the longer-term competitive environment. In both cases, moving from a near-monopoly to a duopoly, or longer-term an oligopoly, likely comes with weaker pricing power and slower subscriber growth. These considerations warranted trimming our Liberty Broadband position, and we will monitor developments closely.”
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Our calculations show that Liberty Broadband Corporation (NASDAQ:LBRDA) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Liberty Broadband Corporation (NASDAQ:LBRDA) was in 22 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 24 funds in the previous quarter. Liberty Broadband Corporation (NASDAQ:LBRDA) delivered a -22.10% return in the past 3 months.
In March 2022, we also shared another hedge fund’s views on Liberty Broadband Corporation (NASDAQ:LBRDA) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
