Liberty Broadband (LBRDA, Financial) – Cable and media holding company Liberty Broadband, which owns 26% of publicly traded Charter, was a detractor, as sentiment for its underlying, monthly-recurring revenue cable business swung from post-COVID winner highs to new lows. We have a long history of investing in the cable industry and partnering with the Liberty management team, who are taking steps to close the double valuation gap – at both the Charter and Liberty Broadband levels – through share repurchases and potentially other smart moves. We are paying a single-digit multiple of growing free cash flow per share for a business that has historically been recession resistant. This opportunity is a close parallel to our 2008 investment in Liberty Entertainment, which sold for half of the value of its underlying stake in DirectTV (which also sold for half of its value), and ultimately went on to be our top performer in 2009. Then, as now, we had Liberty management at the helm, who were laser focused on getting shareholders paid.
From Mason Hawkins (Trades, Portfolio)' Longleaf Partners Fund third-quarter 2022 commentary.
