Howard Hughes Holdings Inc. (HHH), An Undervalued Stock, According to Bill Ackman

Howard Hughes Holdings Inc. (NYSE:HHH) is included in our list of the 9 best stocks to buy according to billionaire Bill Ackman, accounting for 9.69% of the total portfolio.

With his long-term belief in this real estate developer's potential and its effort to become a diversified holding company, Bill Ackman's hedge fund maintains a significant stake in Howard Hughes Holdings Inc. (NYSE:HHH), owning over 18.85 million shares as of the end of Q4 2025. This position was unchanged from the previous quarter and valued at more than $1.50 billion.

By investing $900 million to purchase nine million freshly issued shares in May 2025, Pershing Square strengthened its commitment and increased its total ownership to roughly 47%. Ackman rejoined Howard Hughes Holdings Inc. (NYSE:HHH)’s board as Executive Chairman, and Ryan Israel, the CIO of Pershing Square, assumed the newly established position of Chief Investment Officer.

In his 2025 Letter to Shareholders from February 2026, Ackman presented the investment as a tale of long-term development. Because of its complex structure and exposure to real estate development, he believes the market has traditionally undervalued Howard Hughes Holdings Inc. (NYSE:HHH). Therefore, Pershing Square now aims to restructure it as a diversified holding company by acquiring controlling interests in long-lasting, superior companies, mirroring Berkshire Hathaway’s strategy.

Meanwhile, data from Insider Monkey's database suggests that overall hedge fund stake remained significant as of the end of Q4 2025, totaling approximately $1.69 billion, indicating strong ongoing institutional interest despite ongoing industry softness. However, the number of hedge funds holding positions in the company decreased slightly, from 32 to 30, during the quarter.

Howard Hughes Holdings Inc. (NYSE:HHH) is a real estate development company that manages master-planned communities, commercial complexes, and mixed-use districts. It adds value through land sales, strategic property development, and the redevelopment of entertainment neighborhoods.

While we acknowledge the potential of 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.

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