Should You Now Sell Your Howard Hughes (HHC) Stake?

Baron Funds, an asset management company, released its “Baron Real Estate Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. Baron Real Estate Fund (the “Fund”) declined 20.62% (Institutional Shares) in the second quarter of 2022, underperforming its primary benchmark, the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index”), which declined 17.12%. The Fund underperformed the MSCI US REIT Index (the “REIT Index”), which declined 17.16%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

In its Q2 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 $3.2 billion market capitalization. The Howard Hughes Corporation (NYSE:HHC) delivered a -35.51% return since the beginning of the year, while its 12-month returns are down by -25.81%. The stock closed at $65.64 per share on September 15, 2022.

Here is what Baron Real Estate Fund has to say about The Howard Hughes Corporation (NYSE:HHC) in its Q2 2022 investor letter:

“We recently exited the Fund’s investment in The Howard Hughes Corporation. The company is a real estate developer and operator of master-planned real estate communities and mixed-use properties throughout the U.S. The shares have been under pressure in part due to concerns that the company’s development projects may be vulnerable to the economic and housing market slowdowns. We have reallocated the capital to higher conviction investment opportunities.”

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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 second quarter of 2022, compared to 24 funds in the previous quarter. The Howard Hughes Corporation (NYSE:HHC) delivered a 7.38% return in the past 3 months.

In September 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 Q2 page.

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