Andvari Associates, an investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be seen here. A net return of 31.1% was recorded by the fund for the year end 2020, outperforming its S&P 500 benchmark that delivered an 18.4% return. You can see the fund’s holdings and its biggest bets for 2021.
Andvari Associates said in their Q4 letter that one of their holdings, Liberty Broadband Corporation (NASDAQ: LBRDA), had a notable acquisition last year. Liberty Broadband Corporation is a communications business operator that currently has a $35.9 billion market cap. For the past 3 months, LBRDA delivered a 0.07% return and settled at $147.90 per share at the closing of February 8th.
Here is what Andvari Associates has to say about Liberty Broadband Corporation in their investor letter:
“The most notable event in Andvari portfolios was one holding, Liberty Broadband, acquiring another holding, GCI Liberty. This was an all-share transaction. Andvari supported it. Broadband is now over 20% of Andvari’s assets under management.
Like Broadband’s management, we believe the transaction creates meaningful value. First, the two companies generate immediate savings from duplicative public company and overhead costs. Most importantly, the transaction means Broadband has a 25% stake in Charter Communications (the second-largest cable operator in the U.S. by subscribers) and also owns 100% of GCI.
GCI is Alaska’s largest communication company with over $900 million in annual revenues and capable of producing $150 million in free cash flow. With access to a cash producing asset in GCI, Broadband has greater flexibility to deploy capital. In fact, after the announcement of the deal last August, Broadband increased its share repurchase authorization from $200 million to $1.2 billion. Broadband remains an attractive investment and Andvari looks forward to many more years as shareholders.”
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Last month, we published an article about Alphyn Capital Management’s bullish investment thesis on Liberty Broadband Corporation (NASDAQ: LBRDA). In our recent data, the company was in 234 hedge fund portfolios. Its all time high statistics is 235. LBRDA delivered a 28.49% return in the past 12 months.
Our calculations show that Liberty Broadband Corporation (NASDAQ: LBRDA) does not belong in our list of the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
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Disclosure: None. This article is originally published at Insider Monkey.
