Author Topic: HHC - Howard Hughes Corp  (Read 56522 times)

BG2008

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Re: HHC - Howard Hughes Corp
« Reply #160 on: July 11, 2019, 06:34:25 PM »
Does he overlay a qualitative aspect to his screening.  Joel Greenblatt's magic formula will sometimes return results like the BP Prudhoe Bay Royalty Trust that has very high margin but should be valued on a DCF basis.   


Spekulatius

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Re: HHC - Howard Hughes Corp
« Reply #161 on: July 11, 2019, 06:56:26 PM »
Does he overlay a qualitative aspect to his screening.  Joel Greenblatt's magic formula will sometimes return results like the BP Prudhoe Bay Royalty Trust that has very high margin but should be valued on a DCF basis.

I don’t think he does, because his approach is based on mechanical screening. His approach is indeed related to Greenblatt‘s “Magic Formula”, which uses EV/EBIT and Return on capital, expect he only uses EV/EBIT. Tobias claims that his simpler formula actually works better than Greenblatts magic formula in backtests.

Tobias Carlisle is active on Twitter and has a pretty good podcast You can ask him directly, if interested.
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Liberty

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Re: HHC - Howard Hughes Corp
« Reply #162 on: July 12, 2019, 07:39:17 AM »
I don't think this needs to be personalized in a negative manner. HHC has thousands of investors long and short, I'm sure.

If Tobias has been short for even just a year, he's not lost anything, as the stock is now just back to where it was not long ago.
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CorpRaider

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Re: HHC - Howard Hughes Corp
« Reply #163 on: July 12, 2019, 12:04:25 PM »
It's not just a naïve ev/ebit screen (he's got financials in there, for example).  There's a lot of info in his books and he has appeared on several podcasts to discuss the strategy.  I think, however, after learning from Einhorn, I've got an absolute zero shorting policy in all investing.