Here’s Why FPA Crescent Fund Invested in Comcast Corporation (CMCSA)

FPA Crescent Fund, an investment management company, recently published its second-quarter 2022 investor letter. A copy of the same can be downloaded here. The fund returned -9.32% in the second quarter and for the trailing 12 months, it declined by 10.69%. The top five performers provided 3.4% to the fund’s return. You can view the top 5 holdings of the fund to know its best picks in 2022.

In the Q2, 2022 investor letter FPA Crescent Fund highlighted Comcast Corporation (NASDAQ:CMCSA) and explained its performance. Comcast Corporation (NASDAQ:CMCSA) is a media technology company that operates internationally and is headquartered in Philadelphia, Pennsylvania. One-month return of Comcast Corporation (NASDAQ:CMCSA) was -4.23% while its 12-month return dropped to -34.79%. The stock of Comcast Corporation (NASDAQ:CMCSA) closed at $38.27 per share on August 5, 2022.

Here is what the fund specifically said about Comcast Corporation (NASDAQ:CMCSA) in its Q2, 2022 investment letter:

“Charter and Comcast Corporation (NASDAQ:CMCSA), the Fund’s investment in the US cable industry, is an example of us leaning into fear. These investments have underperformed in the last year but still trade above the Fund’s cost basis. The industry has been plagued by fears of video cord cutting, and competition from 5G and Fiber to the Home. This allowed us to buy and to continue to hold both Comcast and Charter Communications. These businesses trade at what we believe are reasonable valuations and we think should have attractive growth in free cash flow over the next decade. We expect that they will allocate that free cash flow in the best interest of shareholders, given that they are controlled by owner-operators.”

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Although, FPA Crescent Fund is invested in Comcast Corporation (NASDAQ:CMCSA), the stock isn’t on the list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 78 hedge fund portfolios held Comcast Corporation (NASDAQ:CMCSA) at the end of first quarter which was 80 in the previous quarter.

We discussed Comcast Corporation (NASDAQ:CMCSA) in another article,  published in July, that shared the top picks of Felix Wai’s Zeno Research. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

Disclosure: None. This article is originally published at Insider Monkey.