Do You Think The Howard Hughes Corporation (HHC) is a Good Long-Term Investment?

Rhizome Partners, an investment management company, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund generated a 4.8% net loss compared to a 4.9% loss for the S&P 500 Index and a 10.8% loss for the National Association of Real Estate Investment Trusts (NAREIT). The hedging efforts of the fund generated a gain of 2.9% during the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Rhizome Partners highlighted stocks like The Howard Hughes Corporation (NYSE:HHC) in its Q3 2022 investor letter. Headquartered in Dallas, Texas, The Howard Hughes Corporation (NYSE:HHC) is a US-based real estate company. On December 6, 2022, The Howard Hughes Corporation (NYSE:HHC) stock closed at $73.17 per share. One-month return of The Howard Hughes Corporation (NYSE:HHC) was 21.44% and its shares lost 22.02% of their value over the last 52 weeks. The Howard Hughes Corporation (NYSE:HHC) has a market capitalization of $3.651 billion.

Rhizome Partners made the following comment about The Howard Hughes Corporation (NYSE:HHC) in its Q3 2022 investor letter:

The Howard Hughes Corporation (NYSE:HHC) reported strong results in its various business segments in the second quarter. Net operating income in the operating assets was up 14.6% year over year, with strong rent growth and leasing momentum in the multi-family assets. The land-sale business earned $71.3 million and has yet to slow down despite higher mortgage rates. The condo towers in Hawaii are selling, with Koula 96.3% presold and Victoria Place fully sold out. The closing of Koula condo units should generate over $200 million of cash flow in the second half of 2022. Fashion-brand Alexander Wang signed a 46,000-square-foot lease in the Fulton Market Building at the South Street Seaport. We believe this lease could increase the net operating income (NOI) by up to $4 million a year. My wife and I attended the official opening of the Tin Building at the seaport in late September. Acclaimed chef Jean-Georges Vongerichten has curated a great collection of food offerings. The Tin Building adds an exciting new feature to the seaport, further strengthening the ecosystem. We believe that the seaport could potentially flip from losing $20 million a year to generating over $25 million in NOI by 2024. That amount would still be below the original projection, but it would be nice to turn a thorn in the investor’s flesh into a cash flowing asset. With all the restaurants and offerings available, we believe the South Street Seaport can drive exceptional rent growth over time.”

The Howard Hughes Corporation (NYSE:HHC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held The Howard Hughes Corporation (NYSE:HHC) at the end of the third quarter, which was 24 in the previous quarter.

We discussed The Howard Hughes Corporation (NYSE:HHC) in another article and shared billionaire Bill Ackman’s top 6 stock picks. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.