Warren Buffett Is Not Giving Up on These 5 Stocks Despite Losses

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

Number of Hedge Fund Holders: 68

YTD Share Price Decline as of August 19: 30.27%

Charter Communications, Inc. (NASDAQ:CHTR) is a Connecticut-based broadband connectivity and cable operator company. The stock has dropped about 30% year to date as of August 19. However, Warren Buffett’s position in Charter Communications, Inc. (NASDAQ:CHTR) remained unchanged in Q2 2022 despite losses, comprising 3.8 million shares worth about $1.8 billion, representing 0.59% of the total 13F portfolio. 

On August 15, Atlantic Equities analyst Hamilton Faber downgraded Charter Communications, Inc. (NASDAQ:CHTR) to Neutral from Overweight, slashing the price target to $477 from $755, after “much worse than expected” broadband results this quarter. He believes the pressures on broadband will not subside for about 18 months.

According to Insider Monkey’s Q2 data, 68 hedge funds were bullish on Charter Communications, Inc. (NASDAQ:CHTR), down from 73 funds in the earlier quarter. John Overdeck and David Siegel’s Two Sigma Advisors is a notable stakeholder of the company, with 790,325 shares worth $370.2 million. 

Here is what Andvari Associates has to say about Charter Communications, Inc. (NASDAQ:CHTR) in its Q2 2022 investor letter:

“Regarding Liberty Broadband, Andvari has owned it for the last 7+ years primarily because of its large stake in cable company Charter Communications (NASDAQ:CHTR). Given that Liberty also traded at a wide discount to its own net asset value, Andvari saw this as an even cheaper way to own Charter. We sold Liberty because we saw (too slowly) a violation of one of the core parts to our investment thesis: pricing power at Charter was not as great as we imagined. Charter has not been able to raise prices in line with inflation. To add insult to injury, the trade association for the U.S. cable industry started proudly advertising about how internet price increases have remained far behind the rate of inflation.”