Core Insights - Madison Mid Cap Fund's fourth-quarter 2025 investor letter indicates a challenging market environment for high-quality, profitable businesses, as the Russell Midcap Index achieved a full-year return of 10.6% with an annual increase of over 14% [1] - The Fund experienced a decrease of 1.2% in Q4 2025, underperforming the Russell Midcap Index, which increased by 0.2% [1] Company-Specific Insights - Liberty Broadband Corporation (NASDAQ:LBRDK) is highlighted as a key stock in the Madison Mid Cap Fund's portfolio, with a market capitalization of $7.314 billion [2] - The stock closed at $50.97 per share on March 10, 2026, with a one-month return of -9.21% and a 52-week loss of 32.17% [2] - Liberty Broadband was among the bottom five detractors for the quarter, primarily due to disappointing profitability and broadband subscriber losses reported by Charter Communications [3] - Despite recent challenges, the Fund believes that increased free cash flow prospects provide solid valuation support for Liberty Broadband's stock [3] Hedge Fund Interest - Liberty Broadband Corporation (NASDAQ:LBRDK) was held by 59 hedge fund portfolios at the end of Q4 2025, an increase from 54 in the previous quarter [4] - While acknowledging Liberty Broadband's potential, the Fund suggests that certain AI stocks may offer greater upside potential with less downside risk [4]

Core Viewpoint - Liberty Broadband Corporation will hold its virtual Annual Meeting of Stockholders on May 11, 2026, at 11:15 a.m. M.T. [1] Group 1: Meeting Details - Stockholders of record as of March 23, 2026, will be able to participate in the meeting by logging in at the designated virtual meeting website [1] - A 16-digit control number is required for stockholders to enter the virtual meeting [1] - Technical support will be available 10 minutes prior to the meeting [1] Group 2: Access and Archive - Access to the meeting will also be available on the Liberty Broadband website [1] - An archive of the webcast will be available after appropriate filings with the SEC [1] Group 3: Company Overview - Liberty Broadband Corporation's principal asset consists of its interest in Charter Communications [1]

Financial Performance - Liberty Broadband's net loss from continuing operations for the year ended December 31, 2025, was $2.331 billion, compared to a net income of $796 million in 2024[345]. - Charter's revenue decreased by $311 million to $54,774 million for the year ended December 31, 2025, primarily due to lower customers and higher seamless entertainment allocation[356]. - Consolidated operating loss improved by $14 million for the year ended December 31, 2025, compared to 2024[348]. - Net cash provided by (used in) operating activities was $(327) million for the year ended December 31, 2025, compared to $(174) million in 2024[369]. - The effective income tax rate increased to 28% for the year ended December 31, 2025, compared to 19% in 2024[363]. - Share of losses from affiliate increased by $4,385 million during the year ended December 31, 2025, primarily due to a $4.4 billion impairment loss on equity method investment in Charter[352]. Expenses and Costs - General and administrative expenses decreased by $4 million to $31 million in 2025, primarily due to reduced professional service fees related to the Transactions[346]. - Stock-based compensation expense decreased by $10 million to $5 million in 2025, attributed to decreased grant activity under the Merger Agreement[347]. - Operating costs and expenses, excluding depreciation and amortization, decreased by $139 million during the year ended December 31, 2025[357]. - Interest expense decreased by $35 million during the year ended December 31, 2025, due to lower interest rates on variable rate debt[351]. - Interest expense and preferred stock dividends total $1,062 million, with $92 million due within one year[376]. Investments and Financing - Net cash provided by (used in) investing activities was $1,207 million for the year ended December 31, 2025, primarily related to the sale of Charter Class A common stock[370]. - Net cash flows used in financing activities were primarily to settle the 3.125% Debentures due 2054 for $952 million during the year ended December 31, 2025[371]. - Total material cash requirements amount to $2,997 million, with $1,755 million in debt due within one year[376]. - The company's variable rate debt amounts to $790 million with a weighted average interest rate of 5.5%, while fixed rate debt is $965 million with a weighted average interest rate of 3.1%[388]. Market and Risk Factors - The company is exposed to market risk from adverse changes in stock prices and interest rates, which could impact future earnings[385]. - The company evaluates declines in fair value of equity method investments to determine if they are other than temporary, which could lead to impairment charges[381]. - The company has established policies and procedures to manage market risks associated with its financial activities[385]. - The company’s investment in Charter is publicly traded and subject to market risk not directly reflected in financial statements[388]. - The company’s total debt is expected to vary due to future requirements and market conditions[386]. Corporate Structure and Ownership - Liberty Broadband controls 25.01% of the aggregate voting power of Charter, with an economic ownership interest of approximately 32.8% as of December 31, 2025[322][334]. - The GCI Divestiture was completed on July 14, 2025, with Liberty Broadband distributing 0.20 shares of GCI Liberty's common stock for each share of Liberty Broadband common stock held[329]. - The corporate level tax liability from the GCI Divestiture is estimated to be significantly less than $420 million, with Charter bearing the tax liability upon completion of the Combination[327]. Business Operations - Charter added 1.9 million mobile lines during the year ended December 31, 2025, while improving Internet and video losses compared to the prior year[338]. - Charter spent $2.2 billion on its subsidized rural construction initiative in 2025, activating approximately 483,000 subsidized rural passings[342]. - Charter's revenue is primarily derived from monthly fees, with additional income from installation fees and advertising sales, focusing on customer retention and cross-selling[335]. - Charter's network evolution initiative aims to deliver symmetrical and multi-gigabit speeds across its entire footprint, enhancing service offerings[342]. Accounting and Estimates - The company’s accounting estimates and assumptions are critical to its financial statements, affecting reported amounts of assets and liabilities[377]. - The company recorded a $4.4 billion impairment loss on its equity method investment in Charter due to a sustained decline in share price[383].

Company Overview - Liberty Broadband Corporation (LBRDA, LBRDB, LBRDK) has over 20 years of experience in the TMT sector, both in Europe and globally [1] - The company has a decade of investment experience, maintaining close relationships with relevant companies and themes in the industry [1] - The educational background of the company’s analysts includes Corporate Finance, with experience in various notable companies such as KPN, Liberty Global, and Vodafone [1] Investment Position - The company holds a beneficial long position in the shares of LBRDP through stock ownership, options, or other derivatives [2]

Core Insights - The performance of the Southeastern Small-Cap Fund has been mixed, with the underlying developments of holdings being better than stock price returns, particularly in a challenging market environment [2][3] - The fund's portfolio has a lower percentage of big winners compared to the Russell 2000, with only 15% of its holdings up an average of 30% compared to over 35% of the index's holdings up 70%+ [3] - The fund has maintained a strong position in the mid-range performance category, outperforming the Russell 2000 in that segment [4] - The fund's exposure to decliners was limited, with only 10% of the portfolio in this category, resulting in lower average losses compared to the index [5] Performance Analysis - The fund's average performance in the -20% to +20% return bucket was better than the Russell 2000's 0% return, with key holdings like White Mountains, CNX, and Rayonier contributing positively [4] - The fund's cash position and stable investments like Kodak initially provided safety but later became performance headwinds [6] - The fund's leverage rules have been effective in avoiding pitfalls, and adjustments to the overweight rule have been made to enhance performance [7][8] Notable Contributors - Beclé, a tequila and whiskey manufacturer, was a significant contributor due to its undervaluation and strong market position [9] - GCI Liberty, a communications company in Alaska, benefited from its unique market position and insider support from John Malone [10] - Graham Holdings showed strong performance due to growth in its education and healthcare segments [11] - Mattel has positioned itself well with strong brand power and a robust balance sheet, leading to significant stock repurchases [12] - Oscar Health experienced above-market growth but was exited due to emerging industry risks [14] Notable Detractors - Boston Beer faced challenges due to declining volumes in its major brands, although management is actively addressing these issues [15] - Clearwater Paper struggled with a weak market for solid bleached sulfate paperboard, but management is focusing on share repurchases [16] - Park Hotels & Resorts was impacted by macroeconomic concerns affecting leisure travel, leading to a decision to exit the position [18] Portfolio Activity - The fund made seven new purchases during the year, including GCI Liberty and Beclé, while exiting eight positions, including Kodak and Oscar Health [20][19] Outlook - The fund anticipates continued engagement through research perspectives and podcasts, focusing on quality investments amid market volatility [21] - The fund's strategy emphasizes owning resilient, free cash flow-generating assets to navigate market fluctuations effectively [22]

Core Viewpoint - Liberty Broadband Corporation is inviting shareholders and analysts to participate in a quarterly Q&A session following the fourth quarter earnings conference call of GCI Liberty, Inc, scheduled for February 11 at 11:15 a.m. E.T [1] Group 1 - The conference call will cover the financial performance and outlook of Liberty Broadband and GCI Liberty, along with other forward-looking matters [1] - Interested participants can join the call by phone using specific numbers and a confirmation code, and are advised to call at least 10 minutes prior to the start [2] - A webcast of the conference call will be available on Liberty Broadband's investor relations site, with a replay accessible after the call [3] Group 2 - Liberty Broadband's principal asset is its interest in Charter Communications [3]

Core Insights - Baupost Group's latest 13F filing reveals a highly selective and concentrated portfolio, focusing on durable businesses with long-term cash generation potential [1][2] Investment Moves - **Restaurant Brands International (QSR)**: Increased by 4,203,300 shares to 8,252,862 shares, representing a $529.3 million position (11.05% of the portfolio). This is now Baupost's largest equity holding, indicating a belief in significant mispricing relative to its stable franchise model and cash flows [3][4] - **Elevance Health (ELV)**: Increased by 703,000 shares to 1,319,000 shares, totaling a $426.2 million position (8.90%). The increase suggests confidence in the company's predictable cash flows and resilience in a politically noisy sector [5][6] - **Union Pacific (UNP)**: Newly established position with 1,496,204 shares, valued at $353.7 million (7.38%). The railroad's high barriers to entry and pricing power align with Baupost's focus on downside protection [7][8] - **Alphabet (GOOG)**: Reduced by 775,850 shares to 1,858,138 shares, now a $452.6 million position (9.45%). The reduction reflects portfolio risk management rather than a loss of conviction [9] - **CRH plc (CRH)**: Trimmed by 442,000 shares to 3,383,395 shares, valued at $405.7 million (8.47%). The trim indicates a disciplined approach to valuation, despite the long-term thesis remaining intact [10] - **Full Exits**: Baupost exited several positions entirely, including Viasat, Liberty Broadband, ICON plc, and Amcor, signaling a shift in risk-reward balance [11][12] Strategic Focus - The quarter was characterized by conviction-driven capital redeployment into high-confidence ideas, particularly in sectors like restaurants, railroads, healthcare, and materials [13][14] - Trimming positions like GOOG and CRH reflects a focus on risk management and valuation discipline rather than a bearish outlook [15] - The top 10 positions account for over 75% of disclosed assets, emphasizing Baupost's belief in concentration as a strategy against ignorance [16] - The portfolio prioritizes downside protection, with upside driven by business durability rather than macroeconomic bets [17]

Core Points - Liberty Broadband Corporation's Board of Directors declared a quarterly cash dividend of $0.43750001 per share for its Series A Cumulative Redeemable Preferred Stock [1] - The dividend will be payable in cash on January 15, 2026, to holders of record as of December 31, 2025 [1] Company Overview - Liberty Broadband Corporation's principal asset is its interest in Charter Communications [2]

Financial Performance - Liberty Broadband's operating income for the three months ended September 30, 2025, was a loss of $8 million, compared to a loss of $11 million in the same period of 2024[152]. - The net earnings from continuing operations for the nine months ended September 30, 2025, were $845 million, compared to $523 million for the same period in 2024[152]. - Liberty Broadband's share of earnings from its affiliate, Charter, was $295 million for the three months ended September 30, 2025, down from $346 million in the same period of 2024[152]. - Net earnings from continuing operations were $255 million and $845 million for the three and nine months ended September 30, 2025, respectively[175]. - Operating income decreased by $204 million and $82 million for the three and nine months ended September 30, 2025, respectively[167]. Revenue and Expenses - Revenue decreased by $123 million during the three months ended September 30, 2025, while remaining relatively constant for the nine months ended September 30, 2025[164]. - Selling, general and administrative expenses increased by $9 million for the three and nine months ended September 30, 2025, compared to the prior year periods[154]. - Operating expenses, excluding depreciation and amortization, increased by $66 million and $84 million for the three and nine months ended September 30, 2025, respectively[165]. - Other expenses, net decreased by $58 million and $123 million for the three and nine months ended September 30, 2025, respectively[168]. - Stock-based compensation expense decreased by $2 million and $7 million for the three and nine months ended September 30, 2025, respectively[155]. Investments and Financing Activities - Charter spent $582 million on its subsidized rural construction initiative in the third quarter of 2025, activating approximately 124,000 subsidized rural passings[150]. - Net cash provided by investing activities was $907 million for the nine months ended September 30, 2025, primarily related to the sale of Charter Class A common stock[181]. - During the nine months ended September 30, 2024, net cash flows used in financing activities included repurchases of approximately $300 million in 3.125% Debentures due 2053 and net repayments of approximately $670 million on the Margin Loan Facility[185]. - The company issued $860 million in 3.125% Exchangeable Senior Debentures due 2054, partially offsetting cash flows used in financing activities[185]. - Net cash flows used in financing activities also included repurchases of Liberty Broadband Series A and Series C common stock totaling $89 million[185]. Corporate Structure and Divestitures - The GCI Divestiture was completed on July 14, 2025, resulting in GCI Liberty becoming an independent, publicly traded company[144]. - Liberty Broadband controls 25.01% of the aggregate voting power of Charter, which is a significant equity method investment[134]. - The corporate level tax liability from the GCI Divestiture is estimated to be significantly less than $420 million[138]. Market Risks and Cash Management - The company is exposed to market risk due to changes in stock prices and interest rates, which could affect fair values, cash flows, and future earnings[187]. - The company manages interest rate exposure by maintaining a mix of fixed and variable rate debt to mitigate risks[188]. - As of September 30, 2025, the company has $840 million in variable rate debt with a weighted average interest rate of 5.9% and $965 million in fixed rate debt with a weighted average interest rate of 3.1%[189]. - Projected cash uses for the remainder of 2025 include approximately $20 million for interest payments and approximately $3 million for dividends on Liberty Broadband preferred stock[186]. - Corporate cash and other available sources of liquidity are expected to cover corporate expenses for the foreseeable future[186].

Core Points - The call includes forward-looking statements as per the Private Securities Litigation Reform Act of 1995, with actual results potentially differing due to various risks and uncertainties [1] - GCI Liberty will discuss non-GAAP financial measures such as adjusted OIBDA, adjusted OIBDA margin, and free cash flow, with definitions and reconciliations available in the earnings press release [2] - Key executives participating in the call include Ron Duncan, CEO of GCI Liberty, and Brian Wendling, Chief Accounting and Principal Financial Officer [3]