From The Motley Fool · Thomas Niel · · 1m 20s
Bill Ackman Directs $3 Billion Into HHH Insurance Arm
Bill Ackman aims to build a modern Berkshire Hathaway by investing up to $3 billion into Howard Hughes' insurance unit.
In brief
Bill Ackman aims to build a modern Berkshire Hathaway by investing up to $3 billion into Howard Hughes' insurance unit. Bill Ackman plans to transform Howard Hughes Holdings into a Berkshire-style insurance holding company by investing $2.5-3 billion into Vantage over five years. Originally reported by The Motley Fool.
Ackman's Berkshire Strategy
Bill Ackman through Howard Hughes Holdings aims to emulate Warren Buffett's insurance holding company approach by investing excess cash into stocks.
HHH Acquires Vantage for $2.1 Billion
Howard Hughes Holdings acquired Vantage for $2.1 billion, with book value around $1.8 billion, to build a Berkshire-style insurance unit.
Investing $2.5-3 Billion into Vantage
HHH plans to invest between $2.5 billion and $3 billion of excess free cash flow into Vantage over the next five years to generate stock returns.
Vantage Portfolio Management
Pershing Square will manage Vantage's portfolio for free as part of Ackman's strategy to create a modern Berkshire Hathaway.
Real Estate Management Fees
Ackman seeks to boost Howard Hughes' real estate returns by charging third-party investors management fees similar to Brookfield and Blackstone.
HHH Stock Performance
HHH shares surged after Ackman's remarks but have since pulled back to around $73 per share, near its book value of $66.95.
The short version
Bill Ackman plans to transform Howard Hughes Holdings into a Berkshire-style insurance holding company by investing $2.5-3 billion into Vantage over five years.
