Is Howard Hughes Corp (HHC) A Good Stock To Buy?

Judging by the fact that Howard Hughes Corp (NYSE:HHC) has faced falling interest from the smart money, logic holds that there were a few hedgies who were dropping their full holdings heading into Q4. Intriguingly, Ken Griffin’s Citadel Investment Group sold off the biggest position of the “upper crust” of funds watched by Insider Monkey, totaling about $3.1 million in stock, and Arthur Wrubel’s Wesley Capital Management was right behind this move, as the fund dumped about $2.1 million worth of HHC shares. These transactions are important to note, as total hedge fund interest dropped by 1 fund heading into Q4.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Howard Hughes Corp (NYSE:HHC) but similarly valued. These stocks are Endurance Specialty Holdings Ltd. (NYSE:ENH), Randgold Resources Ltd. (ADR) (NASDAQ:GOLD), HEICO Corporation (NYSE:HEI), and Guidewire Software Inc (NYSE:GWRE). This group of stocks’ market caps are similar to HHC’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ENH 18 306751 0
GOLD 18 179620 0
HEI 20 380440 -3
GWRE 22 118946 5

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $246 million. That figure was a whooping $1.03 billion in HHC’s case. Guidewire Software Inc (NYSE:GWRE) is the most popular stock in this table. On the other hand Endurance Specialty Holdings Ltd. (NYSE:ENH) is the least popular one with only 18 bullish hedge fund positions. Compared to these stocks Howard Hughes Corp (NYSE:HHC) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio, bearing in mind that hedge fund ownership continues to fall.

Disclosure: None