Cooper Investors, an investment management firm, released its “Cooper Investors Global Equities Fund (Hedged)” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned 6.41% in the third quarter, compared to a 4.67% return for the MSCI ACWI 100% Hedged to AUD net dividends benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Cooper Investors Global Equities Fund (Hedged) highlighted stocks like Frontier Communications Parent, Inc. (NASDAQ:FYBR) in the third quarter 2024 investor letter. Frontier Communications Parent, Inc. (NASDAQ:FYBR) offers communication and technology services in the United States. The one-month return of Frontier Communications Parent, Inc. (NASDAQ:FYBR) was -0.06%, and its shares gained 110.93% of their value over the last 52 weeks. On October 18, 2024, Frontier Communications Parent, Inc. (NASDAQ:FYBR) stock closed at $35.70 per share with a market capitalization of $8.892 billion.
Cooper Investors Global Equities Fund (Hedged) stated the following regarding Frontier Communications Parent, Inc. (NASDAQ:FYBR) in its Q3 2024 investor letter:
“The largest contributors were Frontier Communications Parent, Inc. (NASDAQ:FYBR) and Eurofins Scientific (ERF)
Frontier is a US based broadband company converting its legacy copper network into future-proof fibre infrastructure. The completed network will produce highly resilient cash flows which we believe will be worth multiples of the company’s current market value. Frontier began its multi-billion dollar network upgrade in 2021 and is expected to complete the build in mid-2026, at which point cash flows will inflect positively.
During the quarter, leading US telco Verizon entered into an agreement to acquire Frontier for US$38.50 per share, circa 38% above the undisturbed price. The shares have settled at a price of circa US$35.50 reflecting the roughly 18-month approval process required to close the transaction. Despite this premium it is our view that the US$38.50 price is highly opportunistic, coming at a time when the risks of the network build (funding, costs) are decreasing in advance of the inflection in cash flows, which will persist for decades.
Frontier has one of the highest calibre management teams in global telecommunications and we have observed them execute their strategy over the three years accordingly, such that the standalone prospects and value of the company are not reflected in the offer price, let alone any synergies on offer via a combination with Verizon.”
A close-up of a smartphone, its screen alight and displaying the company’s communication services.
Frontier Communications Parent, Inc. (NASDAQ:FYBR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Frontier Communications Parent, Inc. (NASDAQ:FYBR) at the end of the second quarter which was 35 in the previous quarter. Frontier Communications Parent, Inc.’s (NASDAQ:FYBR) second quarter revenue increased 2% year-over-year to $1.48 billion. While we acknowledge the potential of Frontier Communications Parent, Inc. (NASDAQ:FYBR) 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 Frontier Communications Parent, Inc. (NASDAQ:FYBR) and shared the list of worst booming stocks to buy according to short sellers. In addition, please check out our hedge fund investor letters Q3 2024 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.