Bill Ackman, the founder of hedge fund Pershing Square, has clarified that his plans to transform Howard Hughes Holdings into a diversified holding company will not interfere with how his existing portfolios manage their stakes in other companies, according to a report by Reuters.
The report cites Ackman as explaining on a conference call that Pershing Square Holdings will continue to focus on acquiring large stakes in major companies, while Howard Hughes will shift toward controlling stakes in smaller businesses. “These are two different worlds,” he stated, emphasising that both strategies can coexist without conflict.
Ackman, once known for his aggressive activist investing, has been gradually reshaping his firm, Pershing Square Capital Management, into what he calls a “modern-day version of Berkshire Hathaway.” After stepping away from his high-profile activist campaigns three years ago, he has focused on building a long-term investment vehicle that prioritises stable, compounding growth over short-term gains.
His latest proposal for Howard Hughes involves injecting $900m into the company, increasing his stake from 37.6% to 48%. Under this plan, Ackman would also assume the role of CEO, marking a deeper commitment to a company he has been involved with for over a decade. Previously serving as Chairman, he stepped down from the board early last year.
Ackman envisions Howard Hughes as a permanent home for small businesses, rather than a typical private equity-style buy-and-sell model. “You will be important to us,” he assured potential acquisition targets, emphasising that his goal is to build long-term value rather than flipping investments for short-term profit.
Nearly a year ago, Ackman attempted to launch Pershing Square USA, a new fund aimed at giving US investors access to the strong double-digit returns that his publicly traded hedge fund, Pershing Square Holdings, has delivered. However, he pulled the plug on the launch just days before its scheduled debut on the New York Stock Exchange after scaling down the fundraising target from $25bn to $2bn.
Despite that setback, Ackman has privately signalled his intent to revisit the idea of taking a new fund public, and has reportedly engaged with bankers to assess interest in a future initial public offering.
