Tapasya Fund Exited Howard Hughes Holding (HHH) Due to Unrealized Value

Tapasya Fund, an investment management company, released its fourth quarter 2025 investor letter. A copy of the letter can be downloaded here. The firm celebrated its third anniversary in August 2025 and is happy with the fund’s performance. In 2025, the fund performed well and achieved strong absolute returns, outpacing the S&P 500 and several other market indices. The year was marked by notable developments, especially related to tariffs, which led to substantial fluctuations in the market. There was a swift correction in April, followed by a robust rebound. The theme Artificial Intelligence (AI) has played a crucial role in supporting the market through times of volatility to reach new peaks, reaching over 38 new all-time highs this year. Against this backdrop, the fund returned 23.5% (net) in 2025 compared to a 17.9% return for the S&P 500 Index (with Dividends). The firm's goal is to avoid any sector-specific bubble bursts, reducing the effect on the portfolio beyond general market downturns. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Tapasya Fund highlighted stocks such as Howard Hughes Holdings Inc. (NYSE:HHH). Headquartered in The Woodlands, Texas, Howard Hughes Holdings Inc. (NYSE:HHH) develops and manages master planned communities.  The one-month return of Howard Hughes Holdings Inc. (NYSE:HHH) was -2.64%, and its shares gained 14.71% of their value over the last 52 weeks. On January 8, 2026, Howard Hughes Holdings Inc. (NYSE:HHH) stock closed at $82.34 per share, with a market capitalization of $4.891 billion.

Tapasya Fund stated the following regarding Howard Hughes Holdings Inc. (NYSE:HHH) in its fourth quarter 2025 investor letter:

"Howard Hughes Holdings Inc. (NYSE:HHH) (Sold 2025): • Frustration: Despite the quality of its real estate portfolio and potential for asset monetization, the market has not recognized HHH's value. The stock was largely flat over the three years we held it. • Reason for Sale: The exit was driven purely by opportunity cost—the desire to deploy capital into assets/companies with higher potential returns. • Outcome: We did not incur a realized loss on the price but suffered an opportunity loss as the asset did not appreciate while the broader market did. The position size was small (~4%)."

Howard Hughes Holdings Inc. (NYSE:HHH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 32 hedge fund portfolios held Howard Hughes Holdings Inc. (NYSE:HHH) at the end of the third quarter, compared to 36 in the previous quarter. While we acknowledge the potential of Howard Hughes Holdings Inc. (NYSE:HHH) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Howard Hughes Holdings Inc. (NYSE:HHH) and shared Pershing Square Holdings' views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2025 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.