Should You Add Charter Communications (CHTR) Despite Short-Term Concerns?

Parnassus Investments, an investment management company, released the “Parnassus Value Equity Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter, the Fund (Investor Shares) appreciated 10.17% outperforming the Russell 1000 Value Index’s 8.99%. Stock selection in the Information Technology and Communication Services sectors was the main contributor to the fund’s performance in the first quarter. Overweight in Financials and underweight in Real Estate also contributed. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Parnassus Value Equity Fund highlighted stocks like Charter Communications, Inc. (NASDAQ:CHTR) in the first quarter 2024 investor letter. Charter Communications, Inc. (NASDAQ:CHTR) is a broadband connectivity and cable operator. The one-month return of Charter Communications, Inc. (NASDAQ:CHTR) was 3.51%, and its shares lost 19.54% of their value over the last 52 weeks. On June 28, 2024, Charter Communications, Inc. (NASDAQ:CHTR) stock closed at $298.96 per share with a market capitalization of $42.262 billion.

Parnassus Value Equity Fund stated the following regarding Charter Communications, Inc. (NASDAQ:CHTR) in its first quarter 2024 investor letter:

"During the quarter, we added new positions in Pfizer, NICE and Charter Communications, Inc. (NASDAQ:CHTR). NICE is a leading cloud contact center software company. Charter’s stock had fallen due to near-term concerns, which we believe will not have a major impact on the long-term value of the business. Charter Communications has had several issues that created short-term uncertainty. We assessed that these issues have limited impacts on the long-term value of the business and initiated a position to take advantage of the stock’s historically low valuation."

A line of cable boxes and modern televisions, representing the company's video services.

Charter Communications, Inc. (NASDAQ:CHTR) is not on our list of 31 Most Popular Stocks Among Hedge Funds.  As per our database, 56 hedge fund portfolios held Charter Communications, Inc. (NASDAQ:CHTR) at the end of the first quarter which was 69 in the previous quarter. During the first quarter, Charter Communications, Inc. (NASDAQ:CHTR) lost 72,000 Internet users. Revenue was relatively flat while adjusted EBITDA increased by 2.8% during the quarter. While we acknowledge the potential of Charter Communications, Inc. (NASDAQ:CHTR) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

We discussed Charter Communications, Inc. (NASDAQ:CHTR) in another article and shared Weitz Investment Large Cap Equity Fund's views on the company. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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