Bill Ackman: Bullish on Howard Hughes at Sohn Conference



2017 Sohn Investment Conference

Some of the most prominent hedge fund managers—David Einhorn, Bill Ackman, Jeffrey Gundlach, Larry Robbins—spoke at the 2017 Sohn Investment Conference on Monday, May 8, 2017. They gave their views on the current market situation and shared their biggest long and short bets.

The conference, which was held at the Lincoln Center in New York City, aims to provide investors with guidance in this highly volatile and uncertain market.

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Ackman’s bullish view on Howard Hughes Corporation

At the conference, on Monday, May 8, 2017, Ackman, CEO (chief executive officer) and founder of Pershing Square Capital Management, shared his bullish views on the Howard Hughes Corporation (HHC), a major real estate development and management company. He said he has had a long position in HHC stock for years. That day, the stock rose nearly 3.7%. HHC has risen nearly 15.8% YTD (year-to-date) as of May 9, 2017.

Ackman believes it’s a good time to invest in HHC since the company is poised for strong growth in the current economic situation (SPY) (QQQ) (SPX-INDEX). According to an institutional ownership report, Ackman’s Pershing Square Capital Management is the largest investor in HHC, with 3.5 million shares as of December 31, 2016.

At the conference, Ackman shared how Howard Hughes Corporation has many land development projects, with a huge number of residential plots to sell in Las Vegas, Nevada. The company has also acquired land in Hawaii and in the historic South Street Seaport area in New York City. Development in the South Street Seaport district is expected to begin in 2018. The large number of order books and development projects have improved Ackman’s confidence in the company. He’s also a member of the board of directors of the Howard Hughes Corporation.

Ackman said, “We never talked publicly about the company. The question is, why are we talking about it now? The answer is, I think this is one of the most attractive times in the history of the company to invest.”

Earlier, we saw that this billionaire fund manager lost huge amounts money on his strongest play, Valeant Pharmaceuticals International (VRX). Valeant fell nearly 95.0% over a two-year period. After losing so much, Ackman exited his position in the company.

In the next part of this series, we’ll see what Jeffrey Gundlach had to say at the conference.


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