Motiwala Capital, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be seen here. In 2021, the fund’s core US capital appreciation gained +26.5% net of fees. US markets continued their winning ways with the S&P 500 index returning 28.7%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Motiwala Capital, in its Q4 2021 investor letter, mentioned Charter Communications, Inc. (NASDAQ:CHTR) and discussed its stance on the firm. Founded in 1993, Charter Communications, Inc. (NASDAQ:CHTR) is a Stamford, Connecticut-based telecommunications company with a $106.6 billion market capitalization, and is currently spearheaded by its CEO, Tom Rutledge. Charter Communications, Inc. (NASDAQ:CHTR) delivered a -14.60% return since the beginning of the year, while its 12-month returns are down by -8.97%. The stock closed at $556.79 per share on April 05, 2022.
Here is what Motiwala Capital has to say about Charter Communications, Inc. (NASDAQ:CHTR) in its Q4 2021 investor letter:
“Charter Communications (NASDAQ:CHTR) is the second-largest cable service provider in the US providing video, data, and voice services under the Spectrum brand. Charter had a market cap of $130 billion at purchase and is likely to generate upwards of $8B in free cash flow in 2021. The company re-purchases shares at a high rate and fcf/share have been growing in the mid-teens %. The company has been investing in nascent mobile services which are not profitable currently. There is potential for this business to be profitable as it scales. Another possibility is to shut down the service if it does turn a profit in a few years. Both outcomes should increase the profits at CHTR from the current levels. Debt is high but the recurring cash flows allow it to service the debt.”
Our calculations show that Charter Communications, Inc. (NASDAQ:CHTR) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Charter Communications, Inc. (NASDAQ:CHTR) was in 73 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 74 funds in the previous quarter. Charter Communications, Inc. (NASDAQ:CHTR) delivered a -10.89% return in the past 3 months.
In February 2022, we also shared another hedge fund’s views on Charter Communications, Inc. (NASDAQ:CHTR) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.