Howard Hughes Holdings: Great Real Estate At Bargain Prices - Ackman Management Is All Upside

Gary Gambino
6.18K Followers
(13min)

Summary

  • Howard Hughes Holdings has appreciating land assets and a growing revenue stream, but is undervalued by the market.
  • Bill Ackman's Pershing Square Holdings invested $900 million in HHH, aiming to diversify and generate free cash, modeling HHH after Berkshire Hathaway's early years.
  • The Pershing Square deal transforms HHH into a growth company and makes it more visible to investors, potentially warranting multiple expansions.

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The Base Business — Premium Real Estate At Discount Prices

Howard Hughes Holdings (NYSE:HHH), a real estate development company with stagnant stock performance, low analyst coverage, and no dividend, has seen increasing investor curiosity over the past

This article was written by

6.18K Followers
I retired early after 22 years in the energy industry with roles in engineering, planning, and financial analysis. I have managed my own portfolio since 1998 and have met my goal to match the S+P 500 return over the long term with lower volatility and higher income. I mostly write on positions I already hold or am considering changing. I prefer to hold positions for the long-term unless there is a compelling reason to sell. I look for investment opportunities without regard to asset class, market cap, sector, or yield. I would rather maximize total return over time by buying when price is low relative to intrinsic value.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of HHH, BRK.B either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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