We recently published a list of Billionaire Bill Ackman’s 7 Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where Howard Hughes Holdings Inc. (NYSE:HHH) stands against other billionaire Bill Ackman’s stock picks with huge upside potential.
Known commonly as Bill Ackman, William Albert Ackman is the founder and Chief Executive Officer of Pershing Square, a hedge fund renowned for its focused investment strategy and high-conviction portfolio. Ackman is known for maintaining a highly concentrated investment approach, often holding stakes in only 8 to 12 companies at any given time. By the end of the fourth quarter of 2024, Pershing Square’s portfolio was valued at $12.66 billion and included ten stocks, with over 50% of the fund’s capital concentrated in just the top four investments. This exemplifies Ackman’s commitment to identifying and capitalizing on undervalued opportunities, favoring companies that he believes are mispriced in relation to their intrinsic, long-term value.
Ackman’s investment philosophy has largely centered on value-based principles and activist strategies. His ability to identify market inefficiencies and apply pressure for change has yielded significant returns in the past. Pershing Square’s portfolio selections typically reflect this strategy, with a strong emphasis on companies with solid fundamentals and potential for operational or financial turnaround.
In early 2024, Ackman took a notable step by launching a U.S. closed-end fund named Pershing Square USA, Ltd. However, the initial public offering (IPO) of the fund was abruptly canceled just one day after filing with the Securities and Exchange Commission (SEC). The cancellation followed an unexpected drop in valuation from an intended $25 billion to just $2 billion. Following the cancellation, Ackman posted on the social media platform X that the firm would “report back once we are ready to launch a revised transaction,” suggesting that Pershing Square USA may still proceed in the future without a traditional stock exchange listing.
Ackman’s active engagement with both market trends and political developments illustrates his multifaceted approach to investing. As Pershing Square continues to evolve, close attention is being paid to the stocks within its concentrated portfolio, particularly those with the highest upside potential in light of current economic and political tailwinds.
Our Methodology
For this list, we searched through Pershing Square’s Q4 2024 13F filings to identify billionaire Bill Ackman’s stock picks with the highest upside potential. We compiled the equities with upside potential higher than 12% at the time of writing this article and analyzed why they stood out as sound potential investments. Finally, we ranked the stocks based on the ascending order of their upside potential. To assist readers with more context, we mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
A high-rise building with balconies, showcasing the company’s investments in residential real estate finance.
Howard Hughes Holdings Inc. (NYSE:HHH)
Number of Hedge Fund Holders as of Q4: 39
Pershing Square’s Equity Stake: $1.45 Billion
Upside Potential as of May 5: 34.39%
Howard Hughes Holdings Inc. (NYSE:HHH) is a real estate development and management company headquartered in The Woodlands, Texas. It was established in 2010 through a spin-off from General Growth Properties and has since focused primarily on developing and managing large-scale, master-planned communities. The company’s portfolio includes a range of residential, commercial, and mixed-use properties concentrated in high-growth regions of the United States. These master-planned communities are designed to be self-sustaining ecosystems, blending housing, commerce, and recreation to create long-term value.
Financially, Howard Hughes Holdings Inc. (NYSE:HHH) posted strong results in the fourth quarter of 2024. The company reported quarterly sales of $120.29 million, up from $103.81 million in the same period the previous year. Total revenue surged to $983.59 million from $312.96 million, marking a significant increase. Net income for the quarter rose to $156.32 million, a substantial jump from $34.3 million a year earlier. Basic earnings per share from continuing operations stood at $3.27, more than triple the $1.06 reported in the prior year.
For the full fiscal year, Howard Hughes Holdings Inc. (NYSE:HHH) continued this positive momentum. Sales totaled $466.86 million, up from $429.87 million in the previous year. Revenue nearly doubled to $1.75 billion from $908.75 million, while net income soared to $197.7 million, a stark reversal from the prior year’s net loss of $551.77 million. Basic earnings per share from continuing operations were $5.75, up from $1.68, highlighting the company’s strong operational turnaround and improved profitability.
The stock ranks second among Ackman’s holdings in terms of upside potential, with analysts projecting a gain of 34.39%. This strong financial performance and strategic positioning suggest that Howard Hughes Holdings Inc. (NYSE:HHH) is in a phase of robust growth, driven by the successful execution of its master-planned development model. Its focus on high-demand urban regions and its unique ability to design and control entire communities gives it a defensible competitive advantage. The stock’s high upside potential further reinforces the belief that HHH is well-positioned to capitalize on demographic and economic trends favoring mixed-use, sustainable real estate development.
Overall, HHH ranks 2nd on our list of billionaire Bill Ackman’s stock picks with huge upside potential. While we acknowledge the potential of HHH as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than HHH but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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