At first glance, it may seem odd that we are buying shares of Leap Wireless (LEAP). Given our focus on investing in secular growth trends, why would we wish to have exposure to an unprofitable wireless carrier saddled with billions in debt? The answer, however, can be found in one of the strongest secular growth trends of the past few years (and of the years to come): the continued growth in demand for wireless spectrum, something Leap has far more of than it can use. In our view, Leap Wireless is likely to part with a good deal of its spectrum in the intermediate future. That, combined with a slow, but continuing turnaround, should serve to underpin the...
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