Conventum - Alluvium Global Fund on Charter Communications, Inc.

Alluvium believes the market has extrapolated Charter's current subscriber and pricing pressures too far into the future. Although internet customers are declining and ARPU is flat, the fund views cable networks as lower cost and less capacity constrained than fixed wireless and low-earth-orbit satellite alternatives. Charter is also adding mobile subscribers faster than it is losing internet customers, while more than half of residential customers take multiple products. The pending Cox acquisition offers additional synergy potential, and the shares trade at earnings and free-cash-flow yields above 20% and at less than half the fund's valuation.