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.”
Photo by Austin Distel on Unsplash
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.
