Charter Communications loses $26.7B in market value over year

First Eagle Global Fund’s Q2 2026 investor letter highlighted Charter Communications as a key detractor, noting the cable giant’s 52‑week decline of 44.5 % and its market capitalization of $26.7 billion. The letter points out that Charter closed at $152.44 on August 31, 2026, and that its one‑month return was –4.1 %. Despite the slide, the fund still labels Charter a high‑quality business with durable assets and steady cash flows that return money to shareholders.

The quarter was marked by a sharp rally in risk‑seeking markets. The S&P 500 climbed 15.2 %, while the MSCI EAFE index gained 10.8 %. Growth stocks outperformed value, and the MSCI World Growth Index eclipsed its value counterpart. Interest‑rate expectations shifted after Kevin Warsh’s appointment as chair of the Federal Open Market Committee, pushing Treasury yields higher and strengthening the dollar. Even with these optimistic market conditions, tighter credit spreads and elevated equity valuations reflected strong demand for financial assets and a post‑World War II high in household equity wealth.

Charter Communications remains the second‑largest U.S. broadband provider, offering cable broadcasting, internet, voice and mass‑media services. The company faces mounting competitive pressure from mobile operators expanding entry‑level fixed‑wireless service. Nonetheless, First Eagle sees Charter’s difficult‑to‑replicate assets and consistent cash‑flow generation as a hedge against market volatility. The fund’s letter also notes that 63 hedge‑fund portfolios held Charter at the end of the quarter, a rise from 48 in the prior period, underscoring institutional confidence in the cable operator’s long‑term value.

While Charter was a detractor in the quarter, the fund’s overall performance—returning 2.86 % in Q2 2026—remained solid, though it lagged behind the MSCI World Index. First Eagle’s outlook remains unchanged, maintaining Charter as a high‑quality holding that can weather competitive headwinds and continue to deliver shareholder value.