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Liberty Media Buys Chunk of Charter, Oaktree Sheds

May 07, 2013 | About:
Sally Jones

Sally Jones

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Guru Howard Marks, Chairman of Oaktree Capital, reduced his Charter Communications (CHTR) position as Liberty Media Corporation (LMCA) bought a 23.7% stake of the company at $95.50 per share. With investment funds managed by Oaktree Capital Management, Apollo Management and Crestview Partners, Liberty Media acquired 26.9 million shares and 1.1 million warrants in Charter Communications Inc. for $2.6 billion, representing a 27.3% ownership in Charter, according to the Denver Business Journal. Liberty Media used $1.2 billion cash and $1.4 billion in margin loans for the purchase, the company said.

According to GuruFocus Real Time Picks, Howard Marks reduced his position, related to the sale, with Charter Communications Inc. (CHTR) by 81.86%, as of May 1, 2013. Marks now holds 2,225,882 shares of CHTR or 2.20% of the company.

The current CHTR share price is $105.03 with a change from average up 4%. Oaktree’s latest trade impacts the portfolio by 43.16%.

Oaktree’s trading history shows a 650% gain on over 12 million CHTR shares bought since the third quarter of 2010, with an average cost per share at $14.



Up 70% over 12 months, Charter Communications (CHTR) is a leading broadband communications company and the fourth-largest cable operator in the U.S. Charter has a market cap of $10.47 billion, a P/B of 71.30 and a P/S of 1.39.



CHTR data by GuruFocus.com

Up 9% over 12 months, Liberty Media Corporation owns interests in a broad range of media, communications and entertainment businesses. Liberty Media has a market cap of $14.25 billion and a P/S of 7.40.

LMCA data by GuruFocus.com

Chairman of Oaktree Capital since its formation in 1995, Howard Marks has been responsible for ensuring the firm's adherence to its core investment philosophy, communicating closely with clients and managing the firm. Oaktree Capital’s updated portfolio lists 53 stocks and a total value of $2.4 billion and a quarter-over-quarter turnover of 10%.



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GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.2/5 (6 votes)

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