Howard Hughes: Still Attractive Despite Risks Of Rapid Transition

Gary Gambino 7.28K Followers Follow Summary Howard Hughes is accelerating its transformation, monetizing real estate assets to rapidly grow its insurance arm, Vantage. HHH plans to sell up to 80% of operating real estate assets and 100% of condos, raising nearly $4 billion for redeployment into insurance. This shift increases risk, as asset sales may face pricing pressure and the insurance unit must deploy new capital prudently. I now rate HHH a regular Buy (from Strong Buy), with a $200+ 2030 share price target, given the ambitious but riskier accelerated strategy. LPETTET/iStock via Getty Images Annual Meeting Shows Accelerating Strategy In the six weeks since I last covered Howard Hughes Holdings ( HHH ), Bill Ackman's hybrid real estate and insurance venture seems to be shifting its transformation strategy into high This article was written by Gary Gambino 7.28K Followers Follow I retired early after 22 years in the energy industry with roles in engineering, planning, and financial analysis. I have managed my own portfolio since 1998 and have met my goal to match the S+P 500 return over the long term with lower volatility and higher income. I mostly write on positions I already hold or am considering changing. I prefer to hold positions for the long-term unless there is a compelling reason to sell. I look for investment opportunities without regard to asset class, market cap, sector, or yield. I would rather maximize total return over time by buying when price is low relative to intrinsic value. Analyst’s Disclosure: I/we have a beneficial long position in the shares of HHH, PSUS, BRK.B either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.