Conventum – Alluvium Global Fund Increased Its Position in Charter Communications (CHTR)
Alluvium Asset Management's fourth-quarter 2024 investor letter highlights an increased position in Charter Communications, which has shown significant stock performance, rising 27.25% over the past year. The fund's strategy involves navigating its holdings in Liberty Broadband and Charter amidst ongoing market fluctuations and consolidation talks, leading to adjustments in their investment portfolio. The fund remains optimistic about the earnings yield and free cash flow yield from Charter's broadband assets, reflecting confidence in long-term growth.
- This situation illustrates the complexities of investment strategies in the face of corporate consolidation, where asset managers must balance growth potential with market reactions to corporate deals.
- What implications could the consolidation between Liberty Broadband and Charter Communications have for competition in the broadband market and investor sentiment moving forward?