PenderFund Capital Management, an investment management company, released its “Pender Strategic Growth and Income Fund” Q3 2024 investor letter. A copy of the fund can be downloaded here. In September, the Federal Reserve revealed a 50-basis-point reduction to its benchmark interest rate, indicating the first decrease in borrowing costs since March 2020, as inflation begins to ease. The fund returned 7.8% in the quarter while trailing one and three year total annualized returns were 26.1% and 8.1%, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Pender Strategic Growth and Income Fund highlighted stocks like Howard Hughes Holdings Inc. (NYSE:HHH) in the third quarter 2024 investor letter. Headquartered in The Woodlands, Texas, Howard Hughes Holdings Inc. (NYSE:HHH) develops and manages commercial, residential, and mixed-use real estate. The one-month return of Howard Hughes Holdings Inc. (NYSE:HHH) was -10.87%, and its shares lost 4.05% of their value over the last 52 weeks. On January 2, 2024, Howard Hughes Holdings Inc. (NYSE:HHH) stock closed at $75.81 per share with a market capitalization of $3.801 billion.
Pender Strategic Growth and Income Fund stated the following regarding Howard Hughes Holdings Inc. (NYSE:HHH) in its Q3 2024 investor letter:
“We added Howard Hughes Holdings Inc. (NYSE:HHH) as an asymmetric special situation investment, believing the company’s sum-of-the-parts real estate-driven value is significantly higher than the market reflects. Public markets often undervalue complex, self-funded companies like HHH, which have extended value creation cycles. The lack of clear catalysts to close this valuation gap has been a key challenge. However, in August, that changed when the management team announced they were exploring strategic options, including a potential take-private transaction, increasing the likelihood of such a move. As a lucky bonus, the Fed’s September rate cut also benefited HHH. We view this as an opportunistic short-term position.”
A bustling business center with a skyline of buildings behind it, representing the company’s success in the real estate sector.
Howard Hughes Holdings Inc. (NYSE:HHH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Howard Hughes Holdings Inc. (NYSE:HHH) at the end of the third quarter which was 35 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 top stock picks from Bill Ackman stock portfolio. In addition, please check out our hedge fund investor letters Q3 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.