Legacy of Howard Hughes - A long-term holding

Fund manager James McDonald at the Pengana High Conviction Equities Fund provides insight into some of the current opportunities arising for the fund.

In particular, James explains why stock example Howard Hughes is very well placed to benefit from the current environment and how it fits in the portfolio structure. With a targeted portfolio made up of less than 20 stock holdings, Howard Hughes is one of the stocks held by investors in the Pengana High Conviction Equities Fund.

Howard Hughes is a long-term fundholding and is a US property developer that owns both operating property assets such as offices, and also owns large tracts of land which it slowly sells off to housing companies to develop.

Howard Hughes, the billionaire aviator, bought the first block of land in Las Vegas in the 1950s. It’s a vast piece of real estate that will house 200,000 residents in one of the most desirable Las Vegas suburbs when it’s completed.

The second, block of land is Ward Village, attractively situated in Honolulu at the northern end of famous Waikiki Beach. The company has a plan to build about 13 high-rise buildings on this land over the next 10 years. The city is popular with both US and Japanese tourists, and there’s a shortage of local housing, creating attractive economics.

The next block of land is the Seaport District, an entertainment area in New York near Wall Street, which we finished at the end of this year

This gives a flavor to some of the land they own.

Watch James McDonald’s latest webinar update here, where he touches on the fund's recent performance, current positioning, and outlook for his specific segment of the market.