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According to the New York Post. According to the New York Post, creating “a modern-day Berkshire Hathaway” is no mean feat, but that’s exactly what billionaire investor and hedge fund manager Bill Ackman intends to do. The Pershing Square CEO plans to increase his stake in real estate company Howard Hughes Holdings and take the company private.
Ackman said in a letter to investors that Pershing currently holds a 37.6% stake in HHH and plans to offer $85 a share to buy out the rest of the firm.
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Emulating The Buffet Playbook
“With apologies to Mr. Buffet, HHH would become a modern-day Berkshire Hathaway that would acquire controlling interests in operating companies,” Ackman, 58, who has a net worth of $9.2 billion, wrote.
Following the news, Howard Hughes shares increased 9.5% to $78.62. Ackman has been involved with the real estate company for a decade and only stepped down from its board in April after serving as its chairman since 2010.
“We, like other long-term shareholders and this board, have been displeased with the company’s stock price performance,” Ackman said in the letter, according to Reuters. When the deal is complete, it would increase Pershing Square’s stake in Howard Hughes to somewhere between 61% and 69%, depending on how many investors agree to be bought out from the 38% it currently holds.
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The Roots Of Howard Hughes
Howard Hughes was an offshoot of real estate investment trust General Growth Properties, forming its own entity in 2010. It owns and manages various types of US real estate, including commercial, residential and mixed-use. It has a market value of $3.6 billion.
Ackman formed Pershing Square in 2004. One of his most notable moves was the rescue of mall operator General Growth Properties, from which he became involved in Howard Hughes. According to Forbes, Pershing Square’s stock portfolio is concentrated in seven companies, including Chipotle, Hilton and Google parent Alphabet, the latter of which he has over 20% of its stock invested, according to The Motley Fool. Ackman is notable amongst other fund managers because of his large social media following with over a million followers on X.