Activist hedge fund takes 8.6% stake in Alexander & Baldwin

Pershing Square Capital run by William Ackman announced today that they have acquired a 8.6% stake in Alexander & Baldwin (ticker symbol:  ALEX).  William Ackman is notorious for taking a share of the company and forcing changes to obviously make money for the shareholder and, of course, his hedge fund.  They do tend to stay with projects on a long term basis, although some of the changes they may want to make are at driect odds with management.

Alexander and Baldwin has 3 separate business:  transportation, real estate holdings, and agri business.  It is very likely that Ackman sees value in splitting up these three business into either two or three pieces.  Over the years, Alexander & Baldwin has been rather stable because its profits come from three different sources.

The real estate part has always been of interest.  They own some 87,000 acres of land here in Hawaii and elsewhere.  This is all income producing and from time to time they do a development.  They made a very nice profit from building and developing the Hokua Condominium on Ala Moana Blvd.  They will attempt to repeat this feat because they have acquired the rights and land to develop a new town very close by that project and that of the Koolani and Hawaiki.

They own and operate some 8 million square feet of industrial, office and retail properties in Hawaii and through the U.S.  This all makes up an interesting play for Pershing Capital, but it could have a definite strong impact on Hawaii which as of yet, remains to be seen.