It was a quiet quarter for the Liberty Media family of companies owned in Northlake client portfolios.  We could get some fresh news on these event driven stocks later this week when Liberty hosts its annual analyst meeting in New York.  We will be attending this year.

Liberty Media (LMCA) remains tied to its 60% stake in Sirius Satellite Radio (SIRI).  SIRI shares have performed and are trading near 52 week highs after another good quarter of subscriber and financial growth.  At some point, SIRI and LMCA will merge or spilt, an event we feel will be bullish for LMCA shares.  While we wait, SIRI continues to be on a good growth path with better competitive position than the market appreciates.

Liberty Broadband (LBRDA) is a lead investor in Charter Communications.  Charter is trying to get regulatory approval to merge with Time Warner Cable.  We believe the odds are good despite rejection of Comcast’s attempt to merge with Time Warner Cable.  A merger would be very bullish for LBRDA, so we are patiently waiting on the FCC.  We think a close in the spring of 2016 is a good target.

Liberty Global (LBTYK) is an operating company and the largest cable company in Europe.  The company’s third quarter report showed signs of the acceleration we are expecting in subscriber, revenue, and cash flow growth.  Management guidance for further acceleration in the fourth quarter gives us confidence that much higher share prices lay ahead for LBTYK.

Liberty Global LiLAC (LILAK) was recently spun out of LBTYK.  LILAK has cable assets in Puerto Rico and Chile.  The spin was designed to separate Europe from Latin America and create vehicle for LILAK to consolidate the fragmented cable and telecommunications industry in Latin America.  LILAK announced it is in merger discussion with Cable and Wireless earlier this month.  We should know the outcome of these discussions by Thanksgiving.  A merger is highly accretive for LILAK and would be a big bullish catalyst for the shares.

LMCA/LMCK, LBRDA/LBRDK, LBTYK, and LILAK  are widely held by clients of Northlake Capital Management, LLC, including in Steve Birenberg’s personal accounts.  Steve is sole proprietor of Northlake, a registered investment advisor.  Northlake’s regulatory filings can be found at www.sec.gov LMCA/LMCK, LBRDA/LBRDK, LBTYK, and LILAK are net long positions in the Entermedia Funds.  Steve is portfolio manager and managing partner of Entermedia, long/short equity hedge funds focused on media, entertainment, leisure, communications, and related technologies