Carl Icahn’s Portfolio — Some Pointers & Update
By Frederic Marsanne
Published on February 13, 2017
Every once in a while, the market does something so stupid it takes your breath away.
Indecision and delays are the parents of failure.
Nothing is worth more than this day.
Only those who have patience to do simple things perfectly ever acquire the skill to do difficult things easily.
Eighty percent of success is showing up.
I don’t want to achieve immortality through my work. I want to achieve it through not dying.
Image courtesy of krishna arts
(Cambridge, MA) — For terrific insight on Carl Icahn’s approach to investing, please read “Becoming Rich – The Wealth-Building Secrets of the World’s Master Investors Buffett, Icahn, Soros” by Mark Tier. The author lays out some of the mental habits and strategic frameworks these billionaire investors and others (John Templeton, etc.) have adopted. They may follow different investment philosophies, but there are commonalities. For example, the book explains why these investors are not interested in Wall Street research reports or other people’s opinions…
Now on to Carl Icahn and his portfolio…
Carl Celian Icahn
Carl (born February 16, 1936) is an American business magnate, investor, activist shareholder, and philanthropist. He is the founder and majority shareholder of Icahn Enterprises, a diversified conglomerate holding company based in New York City. He is also Chairman of Federal-Mogul, an American developer, manufacturer and supplier of powertrain components and vehicle safety products.
Icahn was raised in the Far Rockaway, Queens section of New York City. His family was of Jewish descent. His father was a “dogmatic atheist” and a frustrated opera singer who settled on being a cantor, before becoming a substitute teacher. His mother also worked as a schoolteacher. Carl graduated from Princeton University with a Bachelor of Arts degree in philosophy in 1957 and then joined New York University School of Medicine (because that’s what you do when you want to work on Wall Street); he dropped out after two years to join the army.
Icahn began his career on Wall Street as a stockbroker in 1961 and in 1968, he formed Icahn & Co., a securities firm that focused on risk arbitrage and options trading. In 1978, he began taking controlling positions in individual companies. Icahn developed a reputation as a ruthless “corporate raider” after his hostile takeover of TWA in 1985. The result of that takeover was Icahn systematically selling TWA’s assets to repay the debt he used to purchase the company, which was described as asset stripping.
Icahn endorsed Donald Trump for the 2016 US presidential election. He also announced the formation of a super PAC pledging $150 million to push for corporate tax reform. Icahn will target inversions, which occur when corporations leave the U.S. to take advantage of lower tax rates elsewhere.
Icahn made a substantial contribution to his alma mater, Princeton University, to fund a genomics laboratory which bears his name, the Carl C. Icahn Laboratory at the University’s Institute for Integrated Genomics. He also made large contributions to Mount Sinai Hospital, New York, of which he is a trustee, which in return not only named a building the Icahn Medical Institute designed by Davis Brody Bond, but also, in 2013, renamed the Mount Sinai School of Medicine as the Icahn School of Medicine at Mount Sinai.
Carl Icahn’s portfolio includes 21 positions with a total market value of $20,839 million (as of 9/30/2016).
It is highly concentrated, with its top two positions constituting close to 50% of total assets.
Carl Icahn has close to 35% of his portfolio in Icahn Enterprises LP (IEP); what a surprise! Well, in all fairness, the stock seems to offer value at current price. It has retreated from a high of around $120 reached at the end of 2013 (close to the all-time high attained just before the financial crisis of 2008) to around $57 (as of Friday close, 2/10/17) (after a recent rally). If only revenue and earnings could grow consistently; 2014 and 15 apparently were not the best of years for the firm… Net income was in the red a couple of quarters, and revenue saw some erosion. Still, Carl Icahn is a master investor, and the firm may already be turning its fortune around…
|Positions with Activity||7|
|Sold Out Positions||2|
|Total Mkt Value (in $ millions)||20,839|
Institutional Holdings information is filed by major institutions on form 13-F with the Securities and Exchange Commission.
21 Positions as of 09/30/2016
|Company||Class||Value of Shares ($1,000s) ▼||Change in Value ($1,000s)||Change (%)||Shares Held|
|ICAHN ENTERPRISES LP||DEPOSITARY UNIT||7,253,318||200,977||2.85||127,072,847|
|AMERICAN INTL GROUP INC||COM NEW||2,994,767||New||45,644,982|
|FREEPORT-MCMORAN INC||CL B||1,643,200||New||104,000,000|
|CHENIERE ENERGY INC||COM NEW||1,599,056||New||32,680,490|
|CVR ENERGY INC||COM||1,536,468||New||71,198,718|
|PAYPAL HLDGS INC||COM||1,375,546||New||33,897,153|
|HERBALIFE LTD||COM USD SHS||1,176,496||156,666||15.36||19,611,529|
|AMERICAN RAILCAR INDS INC||COM||544,416||New||11,871,268|
|NAVISTAR INTL CORP NEW||COM||446,193||New||16,272,524|
|NUANCE COMMUNICATIONS INC||COM||328,411||-32,993||(9.13)||19,677,088|
|HERTZ GLOBAL HLDGS INC||COM||264,336||New||12,938,596|
|HERC HLDGS INC||COM||218,705||New||4,312,860|
|MANITOWOC FOODSERVICE INC||COM||203,716||New||10,582,660|
|CVR REFNG LP||COMUNIT REP LT||61,525||-2,675||(4.17)||5,750,000|
|VOLTARI CORP||COM NEW||10,427||New||4,739,620|
|CHESAPEAKE ENERGY CORP||COM||-466,059||Sold Out||0|
- The author of this article owns some shares of IEP, AAPL, PYPL, FCX, CVI, CHK, HTZ.
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Check out the following two videos; they capture some of the spirit…
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