Here's Pershing Square Holdings' Updates on Howard Hughes Holdings' (HHH) 15% Ownership Deal

Pershing Square Holdings, an investment holding company, released its first half 2025 investor letter. A copy of the same can be downloaded here. In the first half of 2025, the company’s NAV per share increased by 15.5% and 17.7% year-to-date through August 19, 2025. The company’s share price rose by 9.9% and 16.5% during these periods, while the S&P 500 increased by 6.2% and 9.9%, respectively. The first half of 2025 was characterized by complex macroeconomic and geopolitical dynamics, contributing to broad uncertainty. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Pershing Square Holdings highlighted stocks such as Howard Hughes Holdings Inc. (NYSE:HHH). Headquartered in The Woodlands, Texas, Howard Hughes Holdings Inc. (NYSE:HHH) develops and manages master planned communities.  The one-month return of Howard Hughes Holdings Inc. (NYSE:HHH) was 12.24%, and its shares gained 9.13% of their value over the last 52 weeks. On September 05, 2025, Howard Hughes Holdings Inc. (NYSE:HHH) stock closed at $78.88 per share, with a market capitalization of $4.685 billion.

Pershing Square Holdings stated the following regarding Howard Hughes Holdings Inc. (NYSE:HHH) in its second quarter 2025 investor letter:

"On May 5, 2025, Pershing Square invested $900 million to acquire 9 million newly issued shares of Howard Hughes Holdings Inc. (NYSE:HHH. Taken together with the Pershing Square Funds’ ownership, Pershing Square now owns 47% of HHH shares outstanding in total. Pershing Square’s investment will enable HHH to become a diversified holding company by acquiring controlling stakes in high quality, durable growth public and private operating companies while continuing to invest in and grow the company’s core real estate operations.

As part of the transaction, HHH has entered into a services agreement under which Pershing Square will support the company’s transformation by providing investment, advisory, and other ancillary services, including corporate development, transaction execution, and capital markets assistance. Pershing Square will also assist HHH in identifying and hedging macro-related risks. Bill has been named the Executive Chairman of the HHH Board of Directors. Ryan Israel, Pershing Square’s Chief Investment Officer, has been named HHH’s Chief Investment Officer, a new senior leadership role at the company.

In exchange for services rendered, PSCM will receive a quarterly base fee of $3.75 million and a quarterly management fee equal to 0.375% of the increase in HHH’s equity market capitalization over a reference market cap of the company. The reference market cap is fixed to the company’s share count at transaction close and is adjusted annually for inflation. Therefore, share issuances will not increase the management fee. It will only increase if the company’s share price compounds at a rate in excess of inflation. PSH’s management fees will be reduced by an amount equal to the fees that PSCM earns on the HHH shares held by PSH, dollar for dollar. While the HHH-related fee reduction to PSH will not be material initially, we expect the reduction to scale meaningfully over time as HHH’s share price appreciates to more accurately reflect its intrinsic value…”(Click here to read the full text)

Howard Hughes Holdings Inc. (NYSE:HHH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Howard Hughes Holdings Inc. (NYSE:HHH) at the end of the second quarter, which was 33 in the previous quarter. While we acknowledge the potential of Howard Hughes Holdings Inc. (NYSE:HHH) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Howard Hughes Holdings Inc. (NYSE:HHH) and shared top stocks from Bill Ackman stock portfolio. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.