After several tireless days we have finished crunching the numbers from nearly 900 13F filings issued by the elite hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms’ equity portfolios as of September 30th. The results of that effort will be put on display in this article, as we share valuable insight into the smart money sentiment towards The Howard Hughes Corporation (NYSE:HHC).
Hedge fund interest in The Howard Hughes Corporation (NYSE:HHC) shares was flat at the end of last quarter. This is usually a negative indicator. Our calculations also showed that HHC isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). At the end of this article we will also compare HHC to other stocks including Companhia de Saneamento Básico do Estado de São Paulo – SABESP (NYSE:SBS), Driven Brands Holdings Inc. (NASDAQ:DRVN), and Vimeo Inc. (NASDAQ:VMEO) to get a better sense of its popularity.
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Keeping this in mind let’s go over the latest hedge fund action regarding The Howard Hughes Corporation (NYSE:HHC).
Paul Tudor Jones of Tudor Investment Corp
Do Hedge Funds Think HHC Is A Good Stock To Buy Now?
At the end of September, a total of 25 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards HHC over the last 25 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Pershing Square was the largest shareholder of The Howard Hughes Corporation (NYSE:HHC), with a stake worth $1196 million reported as of the end of September. Trailing Pershing Square was Cardinal Capital, which amassed a stake valued at $86.5 million. Horizon Asset Management, MIC Capital Partners, and Balyasny Asset Management were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Pershing Square allocated the biggest weight to The Howard Hughes Corporation (NYSE:HHC), around 12.64% of its 13F portfolio. MIC Capital Partners is also relatively very bullish on the stock, designating 7.25 percent of its 13F equity portfolio to HHC.
Because The Howard Hughes Corporation (NYSE:HHC) has faced falling interest from the entirety of the hedge funds we track, it’s easy to see that there is a sect of funds that elected to cut their entire stakes heading into Q4. It’s worth mentioning that Ken Heebner’s Capital Growth Management dropped the biggest stake of the “upper crust” of funds tracked by Insider Monkey, valued at close to $17.7 million in stock. Charles Fitzgerald’s fund, V3 Capital, also dropped its stock, about $15.8 million worth. These moves are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s now take a look at hedge fund activity in other stocks similar to The Howard Hughes Corporation (NYSE:HHC). These stocks are Companhia de Saneamento Básico do Estado de São Paulo – SABESP (NYSE:SBS), Driven Brands Holdings Inc. (NASDAQ:DRVN), Vimeo Inc. (NASDAQ:VMEO), Diversey Holdings, Ltd. (NASDAQ:DSEY), The Wendy’s Company (NASDAQ:WEN), C3.ai, Inc. (NYSE:AI), and Sterling Bancorp (NYSE:STL). This group of stocks’ market values are similar to HHC’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SBS | 6 | 250306 | -5 |
| DRVN | 24 | 183807 | 5 |
| VMEO | 36 | 465295 | -12 |
| DSEY | 8 | 140678 | -4 |
| WEN | 33 | 949810 | 3 |
| AI | 24 | 199056 | -5 |
| STL | 17 | 252247 | 1 |
| Average | 21.1 | 348743 | -2.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 21.1 hedge funds with bullish positions and the average amount invested in these stocks was $349 million. That figure was $1469 million in HHC’s case. Vimeo Inc. (NASDAQ:VMEO) is the most popular stock in this table. On the other hand Companhia de Saneamento Básico do Estado de São Paulo – SABESP (NYSE:SBS) is the least popular one with only 6 bullish hedge fund positions. The Howard Hughes Corporation (NYSE:HHC) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for HHC is 59.4. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 31.1% in 2021 through December 9th and beat the market again by 5.1 percentage points. Unfortunately HHC wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on HHC were disappointed as the stock returned 7% since the end of September (through 12/9) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
Follow Howard Hughes Corp (NYSE:HHC)
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Disclosure: None. This article was originally published at Insider Monkey.
