David Herro Comments on Liberty Global

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Oct 09, 2017

Liberty Global (NASDAQ:LBTYA) is a European-based cable company with leading positions in the U.K. and Ireland, Germany, Belgium and Switzerland. Liberty is a significant beneficiary of the long-term structural growth in data consumption. Moreover, Liberty’s competitively advantaged network, which offers a clear speed advantage over the incumbent telco operators, provides the company with a strong competitive position that should lead to attractive incremental profitability. Liberty’s management team has proven to be adept operators while chairman (and fellow shareholder) John Malone is an outstanding capital allocator. We find Liberty’s valuation to be quite compelling; its shares trade at a significant discount to both our fundamentally driven intrinsic value as well as recent private market transactions.

From David Herro (Trades, Portfolio)'s third quarter 2017 Global Fund Commentary.