Should You Hold Liberty Latin America Ltd. (LILA)?

Steel City Capital, an investment management company, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 7.9% net of fees and expenses. For the nine months in 2022, the fund fell 18.2%, net of fees and expenses. Most of the fund’s decline in the quarter happened in August, as some of the fund’s short positions rallied against the fund in the month. For more information on the fund’s top picks in 2022, please check its top five holdings.

Steel City Capital highlighted stocks like Liberty Latin America Ltd. (NASDAQ:LILA) in the Q3 2022 investor letter. Headquartered in Hamilton, Bermuda, Liberty Latin America Ltd. (NASDAQ:LILA) is a fixed, mobile, and subsea telecommunications services provider. On November 10, 2022, Liberty Latin America Ltd. (NASDAQ:LILA) stock closed at $7.61 per share. One-month return of Liberty Latin America Ltd. (NASDAQ:LILA) was 3.68% and its shares lost 43.34% of their value over the last 52 weeks. Liberty Latin America Ltd. (NASDAQ:LILA) has a market capitalization of $1.656 billion.

Steel City Capital made the following comment about Liberty Latin America Ltd. (NASDAQ:LILA) in its Q3 2022 investor letter:

“Liberty Latin America Ltd. (NASDAQ:LILA) has been a dog this year, declining nearly 45% through the end of the third quarter. The business is highly predictable so there haven’t been any surprises on the operational front, and virtually of its floating-rate debt has been swapped, thereby protecting it from this year’s rapid rise in interest rates. So I’m not quite sure why it has underperformed the broader market so significantly. This year’s free cash flow guide is for $120 million (ex. SBC) and there’s a line-of-sight to $300+ million (ex. SBC) by 2024, meaning shares have been trading in a range of 4-6x price to free cash flow. The Partnership has been a buyer at these levels.”

Liberty Latin America Ltd. (NASDAQ:LILA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Liberty Latin America Ltd. (NASDAQ:LILA)  at the end of the second quarter, which was 20 in the previous quarter.

We discussed Liberty Latin America Ltd. (NASDAQ:LILA) in another article and shared 10 Warren Buffett stocks that are too cheap to ignore. In addition, please check out our hedge fund investor letters Q3 2022 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.