Cogent, CommScope Not Done Going Higher Says JOHCM Manager

Shares of Cogent Communications are up 23 percent in 2016 and one fund likes the high speed internet provider's shares despite the run-up.

Shares of Cogent Communications (CCOI) are up an impressive 23 percent thus far in 2016, raising the company's 2017 price-to-earnings multiple to a lofty 61.Vince Rivers, portfolio manager for the JOHCM U.S. Small Mid Cap Equity Fund (JODIX), said he still likes the high speed internet provider's shares and does not see the stock as expensive despite the run-up. 'Cogent is trading at about 13 times EBITDA right now, which is below its historical average of 15 times, despite the fact that you should see growth this year driven by over-the-top video,' said Rivers. 'Cogent is probably the best pure play on that trend of any stock we see in the market today if you can't play Netflix directly.' The JOHCM U.S. Small Mid Cap Equity Fund is up 5.7 percent thus far in 2016, according to Morningstar. The $5.4 million fund is down 2.5% over the past 12 months, outpacing 66% of its peers in Morningstar's mid-cap growth category. Staying in telecom, Rivers is also bullish on wireless infrastructure provider CommScope (COMM) , up 25 percent year-to-date, calling them a 'big play on small cells.'