Inside One Fund's $21 Million Bet on Hilton Grand Vacations Stock

On January 23, Connecticut-based Iridian Asset Management disclosed a buy of 190,909 Hilton Grand Vacations (NYSE:HGV) shares, with an estimated transaction value of $8.11 million based on quarterly average pricing.

What happened

According to a filing with the U.S. Securities and Exchange Commission dated January 23, Iridian Asset Management increased its position in Hilton Grand Vacations (NYSE:HGV) by 190,909 shares during the fourth quarter. The estimated transaction value is $8.11 million, based on average closing prices for the quarter. Meanwhile, the quarter-end position value increased by $9.35 million, which includes both trading and price effects.

What else to know

The purchase brought the Hilton Grand Vacations stake to 7.66% of Iridian’s reportable assets under management.

Top holdings after the filing:

• NYSE:HLF: $23.67 million (8.7% of AUM)
• NYSE:HGV: $20.81 million (7.7% of AUM)
• NYSE:POST: $16.75 million (6.2% of AUM)
• NYSE:LAD: $15.68 million (5.8% of AUM)
• NASDAQ:PGEN: $15.05 million (5.5% of AUM)

As of January 22, shares of Hilton Grand Vacations were priced at $46.65, up 14.17% over the past year and roughly in line with the S&P 500’s 14% gain in the same period.

Company overview

Company snapshot

• Hilton Grand Vacations offers vacation ownership intervals, points-based vacation clubs, resort management, and consumer financing under the Hilton Grand Vacations brand.
• The company generates revenue through real estate sales, financing of timeshare purchases, resort operations, and club management services.

Hilton Grand Vacations Inc. is a leading timeshare company with a diversified revenue base, operating across real estate sales, consumer financing, and resort management. Its scale, with nearly 200 properties and a substantial membership base, provides recurring revenue streams and operational leverage.

What this transaction means for investors

Iridian’s addition to HGV lifts the stake to nearly 8% of assets, placing it alongside the fund’s highest-conviction ideas and ahead of many more liquid, index-like exposures elsewhere in the book. That’s important to note, and recent operating results help explain why. In the third quarter, the company posted $907 million in contract sales, up nearly 17% year over year, while adjusted EBITDA reached $245 million despite construction-related revenue deferrals. Management reaffirmed full-year adjusted EBITDA guidance of $1.125 billion to $1.165 billion, signaling confidence in cash generation even as reported earnings remain noisy.

CEO Mark Wang framed the quarter as “broad-based operational and financial performance,” pointing to execution across channels and geographies as the foundation for long-term cash flow and shareholder returns. That matters in a portfolio where other top holdings skew toward steadier compounders rather than cyclical rebounds. So the takeaway? When a fund leans in this hard, it’s usually because it believes the business model is proving resilient where others aren’t.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.