Conventum – Alluvium Global Fund: Charter Communications’ (CHTR) Acquisition of Cox Communications Makes Perfect Sense

Alluvium Asset Management, an asset management company, released its “Conventum – Alluvium Global Fund” second-quarter 2025 investor letter. A copy of the letter can bedownloaded here. It appears that the market continues to rise on news of new tariff deals. In the quarter, the Fund was up 8.5% in USD terms, 3.1% in AUD terms, but down 0.1% in EUR terms. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Conventum – Alluvium Global Fund highlighted stocks such as Charter Communications, Inc. (NASDAQ:CHTR). Charter Communications, Inc. (NASDAQ:CHTR) is a broadband connectivity and cable operator company. The one-month return of Charter Communications, Inc. (NASDAQ:CHTR) was 0.91%, and its shares lost 20.27% of their value over the last 52 weeks. On September 02, 2025, Charter Communications, Inc. (NASDAQ:CHTR) stock closed at $264.42 per share, with a market capitalization of $40.31 billion.

Conventum – Alluvium Global Fund stated the following regarding Charter Communications, Inc. (NASDAQ:CHTR) in its second quarter 2025 investor letter:

We have discussed in prior reports that Liberty Broadband (up 15.1%) trades at a discount to its implied price under the agreed deal with Charter Communications (up 10.9%). We didn’t expect this to be corrected so soon. The catalyst was the Liberty deal being brought forward as a result of a different Charter Communications, Inc. (NASDAQ:CHTR) deal – its proposed USD34.5 bn merger with Cox Communications. Charter’s Cox acquisition makes perfect sense. Cox is a major player in cable infrastructure – with over 40,000 miles of fiber across 24 states. Acquiring Cox at a multiple of a little over six times expected 2025 EBITDA, the acquisition is immediately accretive to Charter’s earnings. And in this case, the synergies are apparent – even to blind Freddy. It increases passings to 69.5 million (up 21.5%) and customers to 37.6 million (up 19.7%). Irrespective of the Cox deal proceeding, this sped up the Liberty consolidation. And so the discount referred to above narrowed from 8.9% to 1.4%. Meanwhile, back on Liberty turf, remember that its Alaskan operations (GCI) are not part of the Charter consolidation. Liberty’s management provided some indication as to how it sees GCI on a standalone basis. And its Chairman, John Malone, proffered his thoughts that it should trade at a premium to Charter’s earnings multiple, and to expect active management to pursue small bolt-on acquisitions in special situations (possibly distressed sales) focused on and around the communications industry. We are monitoring closely. Liberty represents 5.1% of the Fund.

In another article, we covered Charter Communications, Inc. (NASDAQ:CHTR) and shared the list of best long-term stocks to invest in according to Warren Buffett. In addition, please check out our hedge fund investor letters Q2 2025 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.