Howard Hughes $HHH Seaport Spinoff: Is It a Low Risk Opportunity?

Spinoff and rights offering special situation

The Howard Hughes spinoff has garnered significant attention from value investors, particularly due to the involvement of Bill Ackman, CEO of Pershing Square, who has been actively backstopping the rights offering.

Joel Greenblatt, in his book You Can Be a Stock Market Genius, emphasizes the importance of rights offerings in spinoff situations. He advises, "Any time you read about a spin-off being accomplished through a rights offering, stop whatever you’re doing and take a look."

This scenario applies directly to the Seaport spin-off, making it a compelling opportunity for further analysis and investment consideration.