Bill Ackman’s Stock Portfolio: Top 9 Stocks to Buy

5. Howard Hughes Holdings Inc. (NYSE:HHH)

Number of Hedge Fund Holders as of Q3: 39

Pershing Square’s Equity Stake: $1.46 Billion 

Howard Hughes Holdings Inc. (NYSE:HHH) is the fifth largest holding in Bill Ackman’s stock portfolio, operating as a real estate development conglomerate. Pershing Square held over 18.85 million shares of the company as of Q3 2024 which constitutes 37.6% of the company, making it the most remarkable shareholder in the company.

Howard Hughes Holdings Inc. (NYSE:HHH) demonstrated a strong Q3 2024 performance. The reported revenue of $327.15 million for the quarter indicates solid business growth. The earnings per share (EPS) for Q3 2024 was a solid $1.46, which exceeded analyst estimates of $1.27 by a significant $0.19 and is a clear positive.

In January 2025, Ackman announced that Howard Hughes Holdings Inc. (NYSE:HHH) would be buying back its shares for $500 million while Pershing Square would increase its stake in the company by $1 billion in the near future. Depending on how many investors Howard Hughes Holdings would buy out, such a move would increase Pershing Square’s stake in Howard Hughes to somewhere between 61% and 69%. Howard Hughes Holdings Inc. (NYSE:HHH) has announced Pershing Square’s proposal to acquire additional shares for a potential merger. However, there is no guarantee that the transaction will proceed since such a major decision requires approval from a majority of shareholders not affiliated with Pershing Square.

Pender Strategic Growth and Income Fund stated the following regarding Howard Hughes Holdings Inc. (NYSE:HHH) in its Q3 2024 investor letter:

“We added Howard Hughes Holdings Inc. (NYSE:HHH) as an asymmetric special situation investment, believing the company’s sum-of-the-parts real estate-driven value is significantly higher than the market reflects. Public markets often undervalue complex, self-funded companies like HHH, which have extended value creation cycles. The lack of clear catalysts to close this valuation gap has been a key challenge. However, in August, that changed when the management team announced they were exploring strategic options, including a potential take-private transaction, increasing the likelihood of such a move. As a lucky bonus, the Fed’s September rate cut also benefited HHH. We view this as an opportunistic short-term position.”