Should You Increase Your Holdings in Liberty Broadband Corporation (LBRDA)? - InvestingChannel

Should You Increase Your Holdings in Liberty Broadband Corporation (LBRDA)?

Alluvium Asset Management, an asset management company, released its “Conventum – Alluvium Global Fund” second-quarter 2024 investor letter. A copy of the same can be downloaded here. The Fund retreated by 2.3%, 3.0%, and 5.3% in EUR, USD, and AUD respectively, in the quarter. Excitement over AI continues, and some are drawing comparisons between the current environment and the late 1990s dot-com bubble. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Conventum – Alluvium Global Fund highlighted stocks like Liberty Broadband Corporation (NASDAQ:LBRDA), in the second quarter 2024 investor letter. Liberty Broadband Corporation (NASDAQ:LBRDA) is a holding company that engages in communications businesses. The one-month return of Liberty Broadband Corporation (NASDAQ:LBRDA) was 20.12%, and its shares lost 28.70% of their value over the last 52 weeks. On August 2, 2024, Liberty Broadband Corporation (NASDAQ:LBRDA) stock closed at $65.02 per share with a market capitalization of $9.415 billion.

Conventum – Alluvium Global Fund stated the following regarding Liberty Broadband Corporation (NASDAQ:LBRDA) in its Q2 2024 investor letter:

“Liberty Broadband Corporation (NASDAQ:LBRDA) was down 4.4%. It owns cable assets across the US, principally via its investment in Charter Communications. Both reported first quarter earnings, and there was little to add from prior news. Internet subscribers continued to fall due to competitor offerings, and the looming end of the Affordable Connectivity Program (ACP) adds uncertainty. We estimate that around one in six of Charter’s residential customers benefited from the ACP subsidies that expired in June. With internet now a basic utility, the risk is not that these customers abandon the product, but rather that they source it elsewhere. We are hopeful that by offering inducements (like free mobile for a year) Charter will mitigate customer losses. On a more positive note, Charter has added nearly half a million mobile subscribers over the year, its churn rate is at record lows, and the rural build out is progressing ahead of schedule. Whereas the ACP effects will be felt in the short term, it will take some time before the growth initiatives (like the rural rollout and mobile convergence strategy) shine through. We also expect the fixed wireless competitors to eventually increase pricing as their capacity is absorbed. This will all take time. We are prepared to wait. We bought a little more Liberty, and it now comprises 5.4% of Fund assets.”

A technician in a telecom facility installing wireless routers and operating on a computer.

Liberty Broadband Corporation (NASDAQ:LBRDA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Liberty Broadband Corporation (NASDAQ:LBRDA) at the end of the first quarter which was 19 in the previous quarter. While we acknowledge the potential of Liberty Broadband Corporation (NASDAQ:LBRDA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Liberty Broadband Corporation (NASDAQ:LBRDA) and shared Meridian Hedged Equity Fund’s views on the company in the previous qurater. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

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

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