Top 5 Stock Picks of John Armitage’s Egerton Capital

3. Charter Communications, Inc. (NASDAQ:CHTR)

Egerton Capital’s Stake Value: $1,528,358,000

Percentage of Egerton Capital’s 13F Portfolio: 7.26%

Number of Hedge Fund Holders: 74

Charter Communications, Inc. (NASDAQ:CHTR), an American telecommunications and mass media company, is one of the top stock picks of John Armitage’s Egerton Capital. The hedge fund elevated its stake in Charter Communications, Inc. (NASDAQ:CHTR) by 21% during Q3 2021, holding a total of 2.1 million shares worth $1.52 billion, representing 7.26% of the 13F securities. 

Wolfe Research analyst John Janedis on January 3 downgraded Charter Communications, Inc. (NASDAQ:CHTR) to Underperform from Peer Perform with a price target of $621, down from $712, citing his view that cable operators will continue to see slower growth in their core broadband business over both the near and long-term.

As of September 2021, 74 hedge funds were long Charter Communications, Inc. (NASDAQ:CHTR), with stakes amounting to $18.79 billion. Berkshire Hathaway is one of the largest Charter Communications, Inc. (NASDAQ:CHTR) stakeholders, holding a $3.05 billion position in the company. 

Here is what ClearBridge Investments has to say about Charter Communications, Inc. (NASDAQ:CHTR) in its Q1 2021 investor letter:

“The portfolio’s quality bias and valuation discipline have generated compelling returns over time with typically strong relative results in more challenging environments as it did through the first three quarters of 2020. However, that same quality bias tends to create a more challenging relative performance environment for the Strategy during periods of sharp economic acceleration, which tend to benefit stocks that are more commodity linked or of lower quality. This has been the case during the vaccine- and stimulus-driven rally experienced late last year and during the most recent quarter. Sectors that lagged in the quarter included communication services, where Charter trailed after generating robust returns earlier in the recovery.”