Is it a Wise Decision to Invest in Howard Hughes Corporation (HHC)?

Rhizome Partners, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. For the fourth quarter of 2021, Rhizome Partners generated a net gain of 6.7% versus an 11.0% gain for the Standard & Poor’s 500 Index and a 16.2% gain for the National Association of Real Estate Investment Trusts (NAREIT) Index. For the year, Rhizome Partners Class B returned 24.9% versus 28.7% for the S&P 500 and 41.3% for the NAREIT. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Rhizome Partners, in its Q4 2021 investor letter, mentioned The Howard Hughes Corporation (NYSE: HHC) and discussed its stance on the firm. The Howard Hughes Corporation is a Woodlands, Texas-based real estate development and management company with a $5.0 billion market capitalization. HHC delivered a -9.66% return since the beginning of the year, while its 12-month returns are down by -7.12%. The stock closed at $91.95 per share on February 23, 2022.

Here is what Rhizome Partners has to say about The Howard Hughes Corporation in its Q4 2021 investor letter:

“In Q4, Howard Hughes Corporation (HHC) announced the sale of its Chicago office tower for more than $1 billion. The building was 85% leased at the time the sale was announced. HHC contributed the land, valued at $85 million, and an additional $5 million in cash. The expected pre-tax proceed to HHC is estimated at $270 million. This is an outstanding outcome for an urban office development project delivered after Covid ravaged the office sector. The company also gained approval for its $850 million development project on the site of the former parking lot in the Seaport in New York City. This is an important milestone after a long and contentious zoning process. HHC also bought a 37,000-acre shovel-ready master-planned community in Phoenix, AZ, for $600 million. We still believe that the company is an excellent developer and each community continues to strengthen with the development of new amenities. This strength will eventually be manifested in rent growth, ample net operating income (NOI) upon stabilization, and simplification of the story over time. The market does not yet appreciate these unique characteristics of the Howard Hughes missions. We’ll continue to wait patiently for the market to agree with us.”


Our calculations show that The Howard Hughes Corporation (NYSE: HHC) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. HHC was in 27 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 25 funds in the previous quarter. The Howard Hughes Corporation (NYSE: HHC) delivered a -0.27% return in the past 3 months.

In January 2022, we also shared another hedge fund’s views on HHC in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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