How GCI Liberty (GLIBA) Continues to Grow in a Challenging Economic Environment

Alphyn Capital recently released its Q1 2020 Investor Letter, a copy of which you can download below. The fund posted a return of -21.7% for the quarter, underperforming its benchmark, the S&P 500 Index which returned -19.6% in the same quarter. You should check out Alphyn Capital’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.

In the said letter, Alphyn Capital highlighted a few stocks and GCI Liberty Inc. (NASDAQ:GLIBA) is one of them. GCI Liberty operates and owns interests in a broad range of communications businesses. Year-to-date, GLIBA stock lost 12.7% and on May 12th it had a closing price of $62.37. Its market cap is of $6.55 billion. Here is what Alphyn Capital said:

“GCI Liberty derives much of its value from its shareholding of Charter Communications, the largest pure play cable operator in the US. Charter is a beneficiary of work from home/social distancing. While there is likely to be some temporary slowdown in cable subscriber growth due to more limited installs during lockdowns, there is also likely to be increased demand for higher tiers of home broadband. Given the high margin nature of broadband service, this might even benefit profitability in the short term, while longer term, human nature is such that customers will be reluctant to switch back to slower internet speeds.”

In Q4 2019, the number of bullish hedge fund positions on GLIBA stock increased by about 27% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with GLIBA’s upside potential.

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