Baron Funds, an asset management firm, published its “Baron Real Estate Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The Baron Real Estate Fund (the “Fund”) declined 10.76% (Institutional Shares) in the first quarter of 2022, modestly outperforming its primary benchmark, the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index”), which declined 11.03%. The Fund underperformed the MSCI US REIT Index (the “REIT Index”), which declined 4.28%. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Baron Real Estate Fund mentioned The Howard Hughes Corporation (NYSE:HHC) and explained its insights for the company. Founded in 2010, The Howard Hughes Corporation (NYSE:HHC) is a The Woodlands, Texas-based real estate development and management company with a $4.2 billion market capitalization. The Howard Hughes Corporation (NYSE:HHC) delivered a -19.35% return since the beginning of the year, while its 12-month returns are down by-21.23%. The stock closed at $82.09 per share on May 24, 2022.
Here is what Baron Real Estate Fund has to say about The Howard Hughes Corporation (NYSE:HHC) in its Q1 2022 investor letter:
“At this stage, we believe several public real estate companies offer compelling long-term return prospects that, in some cases, may include a trifecta combination of growth, dividends, and an improvement in valuation. Examples of public real estate companies that are attractively valued includes: The Howard Hughes Corporation. One of the largest and leading residential and commercial real estate land developers in the country. At its recent price of only $100 per share, the company is valued at a steep discount to management’s conservative estimate of the liquidation value of its portfolio of $170 per share.”
Our calculations show that The Howard Hughes Corporation (NYSE:HHC) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. The Howard Hughes Corporation (NYSE:HHC) was in 24 hedge fund portfolios at the end of the first quarter of 2022, compared to 27 funds in the previous quarter. The Howard Hughes Corporation (NYSE:HHC) delivered a -12.02% return in the past 3 months.
In February 2022, we also shared another hedge fund’s views on The Howard Hughes Corporation (NYSE:HHC) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.