Is Charter Communications (CHTR) a Worthy Investment?

IP Capital Partners, an investment management firm, published its second quarter 2022 investor letter – a copy of the Spanish document can be downloaded here. Following its philosophy and rationality as always, the fund consciously kept away from these niche markets. As the fear has spread, however, even the stocks of good companies have suffered – albeit to a lesser extent. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, IP Capital Partners mentioned Charter Communications, Inc. (NASDAQ:CHTR) and explained its insights for the company. Founded in 1993, Charter Communications, Inc. (NASDAQ:CHTR) is a Stamford, Connecticut-based telecommunications company with a $49.9 billion market capitalization. Charter Communications, Inc. (NASDAQ:CHTR) delivered a -49.61% return since the beginning of the year, while its 12-month returns are down by -56.07%. The stock closed at $328.54 per share on October 04, 2022.

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

“Like Netflix (and other businesses that initially benefited from the pandemic ) , Charter has seen a substantial acceleration in subscriber growth throughout 2020-2021, followed by a relevant slowdown in recent quarters. Furthermore, after five years in which Cable companies absorbed all of the marginal growth in broadband subscribers in the United States, Telcos’ pledges to accelerate the upgrade of their copper networks over fiber optics has resurfaced a narrative of competition. until then asleep.  While we share the concern, the magnitude of the equities correction is substantially greater than the potential impact we see on business value.

First, we believe that the recent growth slowdown is primarily a function of the market, rather than materially different competitive dynamics from recent years. In addition to the anticipated growth due to the pandemic, the slowdown in existing home sales in the US market naturally reduces opportunities to offer plans, disproportionately impacting share-takers like Charter…” (Click here to see the full text)

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Our calculations show that Charter Communications, Inc. (NASDAQ:CHTR) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Charter Communications, Inc. (NASDAQ:CHTR) was in 68 hedge fund portfolios at the end of the second quarter of 2022, compared to 73 funds in the previous quarter. Charter Communications, Inc. (NASDAQ:CHTR) delivered a -31.73% return in the past 3 months.

In July 2022, we also shared another hedge fund’s views on Charter Communications, Inc. (NASDAQ:CHTR) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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

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