Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a656131
Buxton: Liberty bid finally highlights Virgin Media's cash-flow power
by Emma Dunkley on Feb 05, 2013 at 14:21
It emerged last night that Liberty, the US media group chaired by billionaire John Malone, is preparing to bid for Virgin Media, which saw the UK cable operator’s shares soar 16% or £3.85 higher, to £28.58.
Citywire A-rated Buxton, who has 3.5% of his UK Alpha Plus fund in Virgin Media, believes the company is a ‘winner’ in its field.
‘We’ve been shareholders in Virgin Media since it listed in London, firmly believing that the strength of its competitive positioning would ensure that it is a winner in UK broadband and TV,’ said Buxton.
‘The strength of the cash-flows has not been recognised sufficiently to date by the market and it is interesting that an experienced owner of cable has done so.’
According to the Financial Times Liberty has a $3.3 billion cash pile with which to part fund a deal. Virgin Media, which has a main listing on the US Nasdaq technology exchange and a secondary listing in London, was worth £6.7 billion ($10.6 billion) before today's surge.
Over three years to 4 February, Buxton's fund has delivered 45.8%, far outstripping the benchmark’s 35%.
News sponsored by:
Subscribe to Wealth Manager to get the inside track on your rivals' moves
Keep up to date with how your peers are allocating their clients' assets by subscribing to Wealth Manager magazine.
Today's top headlines
More about this:
Look up the funds
Look up the shares
Look up the fund managers
Aberdeen Live supplement: Fundamentals point to ongoing flows and solid returns from EMD
After a record year for inflows and market-leading performance in 2012, emerging market debt has taken a large step towards the mainstream. Our recent debate covers the outlook for the asset class this year and where opportunities can be found.
On the road
by Dylan Lobo on May 22, 2013 at 08:05