Pershing Square Holdings, an investment holding company, released its first half 2024 investor letter. A copy of the same can be downloaded here. It has been a productive year for Pershing Square, despite a slight decline in performance year-to-date through August 13, 2024. The Company’s NAV per share, including dividends, climbed by 5.7% during the first half of 2024 and fell by 2.3% for year-to-date through August 13, 2024, and its share price increased by 14.7% and decreased by 2.9%, respectively. The S&P 500 increased by 15.3% and 14.9% over the same period. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Pershing Square Holdings highlighted stocks like Howard Hughes Holdings Inc. (NYSE:HHH) in the second quarter 2024 investor letter. Howard Hughes Holdings Inc. (NYSE:HHH) operates as a real estate development company. The one-month return of Howard Hughes Holdings Inc. (NYSE:HHH) was 8.87%, and its shares lost 0.16% of their value over the last 52 weeks. On August 21, 2024, Howard Hughes Holdings Inc. (NYSE:HHH) stock closed at $73.10 per share with a market capitalization of $3.672 billion.
Pershing Square Holdings stated the following regarding Howard Hughes Holdings Inc. (NYSE:HHH) in its Q2 2024 investor letter:
Howard Hughes Holdings Inc.’s (NYSE:HHH) results through the first half of 2024 demonstrate solid business momentum across all segments of its portfolio, highlighting its uniquely advantaged business model of owning master planned communities (“MPC”).
In its land sales segment, the company is on track to generate nearly $300 million in full-year profits. New home sales, a leading indicator for future homebuilder demand for land, continues to be supported by limited supply of resale housing inventory and the highly desirable qualities of HHH’s amenity-rich MPCs, which are well-located in growth markets with favorable demographic trends. The strength of this demand is most clearly evident in the pricing the company is able to command for its residential land, with its average price per acre reaching an all-time high of $1.0 million in the most recent quarter.
In the company’s portfolio of stabilized income-producing operating assets, net operating income (“NOI”) grew 4% on a same-store basis during the first half of the year driven by strong leasing momentum and steady rental rate increases. In its Ward Village development in Hawaii, HHH continues to experience robust sales momentum. The company has pre-sold 51% of inventory at its newest condominium tower, The Launiu, despite only having launched sales in February. Outside of Ward Village, the company is developing its first condominium project in the Woodlands, the Ritz-Carlton Residences. As the first-of[1]its-kind luxury development in Houston, the Ritz-Carlton Residences has been met with tremendous demand and has already pre-sold 65% of its available units, representing future revenue of $313 million…” (Click here to read the full text)
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Howard Hughes Holdings Inc. (NYSE:HHH) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Howard Hughes Holdings Inc. (NYSE:HHH) at the end of the second quarter which was 32 in the previous quarter. While we acknowledge the potential of Howard Hughes Holdings Inc. (NYSE:HHH) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Howard Hughes Holdings Inc. (NYSE:HHH) and shared the list of best land and timber stocks to buy according to hedge funds. In a previous investor letter, Pershing Square Holdings shared Howard Hughes Holdings Inc.’s (NYSE:HHH) solid performance for 2023. In addition, please check out our hedge fund investor letters Q2 2024 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.
