Liberty Broadband (LBRDA) Stock Is Incredibly Cheap Right Now

Alex Smith
·3 min read

On October 12, 2020, Giverny Capital released its Q3 2020 Investor Letter, a copy of which you can download here. The Fund returned 6.50% for the third quarter of 2020. Meanwhile, the benchmark S&P 500 Index gained 8.93%. You should check out Giverny Capital's top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the said letter, Giverny Capital highlighted a few stocks and Liberty Broadband Corp (NASDAQ:LBRDA) is one of them. Liberty Broadband Corp (NASDAQ:LBRDA) is an internet service provider. Year-to-date, Liberty Broadband Corp (NASDAQ:LBRDA) stock gained 9.1% and on October 23rd it had a closing price of $138.60. Here is what Giverny Capital said:

"Liberty Broadband is a holding company that owns shares in the cable operator Charter. Each Liberty share essentially holds 0.295 shares of Charter. Based on a recent market price for Charter of $620, Liberty shares should be worth about $180. Instead, they’ve been trading for about $140. The discount strikes us as too wide, so we added slightly to our position."

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In Q2 2020, the number of bullish hedge fund positions on Liberty Broadband Corp (NASDAQ:LBRDA) stock decreased by about 15% from the previous quarter (see the chart here), so a number of other hedge fund managers don't believe in Liberty Broadband's growth potential. Our calculations showed that Liberty Broadband Corp (NASDAQ:LBRDA) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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