📰 Is Ackman Creating the Next Berkshire Hathaway?
Pershing Square aims to turn Howard Hughes Holdings into a diversified holding giant, drawing inspiration from Berkshire Hathaway’s long-term success.
Bill Ackman’s Pershing Square has made a bold move to reshape Howard Hughes Holdings HHH 0.00%↑ into what he calls a “modern-day Berkshire Hathaway.” The hedge fund has submitted a proposal to acquire 10 million newly issued shares at $90 per share. If approved, Pershing Square will own 48% of the company, significantly increasing its influence.
Under this deal, Ackman will take over as Chairman and CEO, with Ryan Israel as CIO and Ben Hakim as President. More importantly, Pershing Square will provide its full resources to transform HHH into a diversified holding company, acquiring controlling stakes in high-quality private and public businesses.
Howard Hughes Corporation, the real estate subsidiary, will continue its focus on developing and expanding master-planned communities
in pro-business markets. Its key holdings include The Woodlands in Houston, Summerlin in Las Vegas, Teravalis in Phoenix, and the Ward Village project in Hawaii.
Ackman’s strategy is to leverage Howard Hughes’ strong real estate assets as a foundation for a broader portfolio of businesses. He sees this model as a long-term winner, contrasting it with Berkshire Hathaway’s origins as a struggling textile company. By focusing on growing cities in business-friendly regions, he believes HHH has the potential to deliver substantial returns over time.
This move marks a significant shift for Howard Hughes Holdings, which has traditionally been known for real estate development. If successful, it will place the company in a unique category, blending real estate expertise with a diversified business strategy reminiscent of Buffett’s empire.
Ackman’s track record as an activist investor suggests that he will push for aggressive growth and strategic acquisitions. Pershing Square’s deep pockets and analytical approach could provide the firepower needed to execute this ambitious vision.
More details on the deal will be shared in a live presentation on Ackman’s X account. Investors and analysts will be watching closely to see if this ambitious transformation materializes.
Source: Bill Ackman X account, CNBC
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