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Bill Ackman's Pershing Square has recently made a significant investment in Howard Hughes Holdings Inc. (HHH), resulting in a substantial ownership stake. As of the most recent information available, Bill Ackman's Pershing Square will now own 46.9% of Howard Hughes Holdings Inc. (HHH) [3] [5]. This stake is the result of a $900 million investment, where Pershing Square acquired nine million newly issued shares of HHH at $100 per share [3] [4] [5]. This purchase price was 48% above the stock's closing price on the Friday prior to the announcement [5].
This strategic move by Pershing Square is intended to transform Howard Hughes Holdings into a diversified holding company, mirroring the model of Warren Buffett's Berkshire Hathaway [5] [6]. Bill Ackman, founder and CEO of Pershing Square, has expressed his admiration for Buffett and his intent to build a similar conglomerate [5] [6]. As part of this transformation, Ackman will assume the role of Executive Chairman of Howard Hughes' board, and Pershing Square's Chief Investment Officer, Ryan Israel, will become CIO of HHH [3] [5].
Pershing Square's involvement extends beyond just equity acquisition; they will provide comprehensive support to HHH, including financial advice, transaction facilitation, strategic market positioning, and assistance in identifying and hedging macroeconomic risks [3] [4]. While Pershing Square will hold a 46.9% stake, they have agreed to limit their voting power in the company to 40% [3] [5]. Howard Hughes Holdings will also pay Pershing Square a quarterly base fee of $3.75 million, along with a management fee tied to changes in HHH's market capitalization [3] [5].
This increased investment and strategic partnership underscore Ackman's high conviction in HHH, which he views as undervalued with appreciating land assets and a growing revenue stream [6]. Analysts have responded positively to the deal, with JPMorgan Chase analyst Anthony Paolone describing it as a "transformational shift" [2] [4]. The consensus among analysts is a "Strong Buy" rating for HHH stock, with an average price target of $89 and a high target of $105 [2] [4] [6].
Citations
The move signifies a deep commitment from Pershing Square to leverage its expertise and resources to drive significant value creation at Howard Hughes Holdings, moving beyond its traditional real estate development focus to become a broader investment vehicle [3] [5] [6].
Authoritative Sources
Billionaire Bill Ackman’s 7 Stock Picks with Huge Upside Potential. [finance.yahoo.com]↩
Should You Buy, Sell, or Hold Howard Hughes Stock as Bill Ackman Doubles Down? [palmettograin.com]↩
Pershing Square to Invest $900 million to Acquire Nine Million Newly Issued Shares of Howard Hughes Holdings and Transform HHH Into a Diversified Holding Company. [investor.howardhughes.com]↩
Should You Buy, Sell, or Hold Howard Hughes Stock as Bill Ackman Doubles Down? [theglobeandmail.com]↩
Bill Ackman's Pershing Square strikes $900 million deal for more control of Howard Hughes. [cnbc.com]↩
Howard Hughes Holdings Inc. (HHH). [stockanalysis.com]↩
Concentrated Investment Strategy. [pershingsquareholdings.com]↩
Activist Investing. [investopedia.com]↩
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Recent News
Date Title
03/05/13 The Howard Hughes Corporation Issues Letter to Shareholders
02/28/13 The Howard Hughes Corporation Reports Fourth Quarter and Full Year 2012 Results
02/13/13 The Howard Hughes Corporation Announces the Redevelopment of the Woodlands Resort & Conference Center
02/12/13 The Howard Hughes Corporation, Kettler and Orchard Development Corporation Break Ground on the Metropolitan Downtown Columbia
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