Neilson Barnard
This text is a part of a collection that gives an ongoing evaluation of the adjustments made to Carl Icahn’s 13F portfolio on a quarterly foundation. It’s based mostly on Icahn’s regulatory 13F Kind filed on 2/14/2023. Please go to our Monitoring Carl Icahn’s Portfolio collection to get an thought of his funding philosophy and our earlier replace for the fund’s strikes throughout Q3 2022.
This quarter, Icahn’s 13F portfolio worth elevated ~3% from $21.23B to $21.75B. The variety of holdings decreased from 17 to 16. The portfolio may be very concentrated with the biggest 5 positions accounting for ~84% of the whole holdings: Icahn Enterprises, CVR Power, FirstEnergy, Occidental Petroleum warrants, and Xerox Corp.
Carl Icahn is finest identified for constructing sizable stakes in companies after which pushing for adjustments to extend shareholder worth. To study extra about his investing type and philosophy take a look at “King Icahn: The Biography of a Renegade Capitalist“.
Be aware: Icahn’s 13F submitting is a consolidated report and so shouldn’t be considered as a single portfolio. Particularly, Icahn Enterprises holds a number of of the companies and the entities in flip maintain Icahn Enterprises. For an thought on the enterprise construction, check-out Icahn Enterprises Investor Presentation (Slide 5).
Stake Disposals:
Twitter Inc.: The big (prime 5) Twitter place was constructed within the mid-30s. The commerce realized substantial short-term features as Elon Musk’s deal for Twitter closed at $54.20 per share final October.
Stake Decreases:
Cheniere Power (LNG): LNG is now a small 0.69% portfolio place. The majority of the unique massive stake was bought in Q3 2015 at costs between $47.50 and $70.50. This autumn 2015 noticed a ~15% improve at costs between $36 and $54. There was an about flip in Q2 2018: ~28% discount at ~$65. This autumn 2020 noticed one other ~20% promoting at costs between ~$46 and ~$61. That was adopted with one other ~94% discount over the past 4 quarters at costs between ~$103 and ~$174. The inventory at present trades at ~$153. They’re realizing long-term features.
Herc Holdings (HRI): HRI is a 2.24% of the portfolio place established in Q2 2016 on account of the spinoff of Herc Holdings from Hertz World Holdings. The inventory began buying and selling at ~$33 and at present goes for ~$135. Latest exercise follows. This autumn 2021 noticed a ~11% trimming at costs between ~$180 and ~$190. That was adopted with a ~7% trimming within the low-130s this quarter.
Be aware: Regulatory filings because the quarter ended present them proudly owning 1.67M shares (~5.7% of the enterprise) of Herc Holdings. That is in comparison with 3.7M shares within the 13F report. The discount occurred at costs between $141 and $158 per share.
Stake Will increase:
Icahn Enterprises (NASDAQ:IEP): IEP place has seen constant will increase over time. The place measurement elevated from ~98M shares to ~102M shares in 2013, to ~109M shares in 2014, to ~117M shares in 2015, to ~130M shares in 2016, to ~158M shares in 2017, 175.4M in 2018, 197M in 2019, 222M shares in 2020, 257M shares in 2021, and 3000M shares as of EOY 2022. The inventory at present trades at ~$53. IEP E-book Worth per share is ~$12 per share.
Be aware: The stake improve over time is primarily as a consequence of them taking the dividend consideration in further shares moderately than money.
Occidental Petroleum (OXY) wts: The ~3% of the portfolio place was established in Q3 2020 when 19.3M warrants (strike 22, 8/3/2027 expiry) have been bought for ~$2.75 per warrant. The stake noticed a ~20% promoting in Q3 2021. There have been minor will increase within the final 4 quarters. The warrants at present commerce at $39.21.
Be aware: That they had a big place within the widespread inventory of OXY however that was offered in Q1 2022.
Crown Holdings (CCK): CCK is a 0.39% of the portfolio stake established final quarter at costs between ~$80 and ~$102 and the inventory at present trades at $84.17. There was a marginal improve this quarter.
Be aware 1: Regulatory filings present them beneficially proudly owning 10.2M shares (8.5% of the enterprise). This contains ahead contracts at an mixture value of $75 per share. The full outlay was ~$687M.
Be aware 2: A director appointment and nomination settlement was reached in January for the corporate’s 2023 election.
Stored Regular:
CVR Power, Inc. (CVI): CVI is a prime three ~10% of the 13F portfolio place first bought in This autumn 2011. The majority of the present place (71.2M shares: ~71% of the entire enterprise) was bought via a $30 per share tender supply in H1 2012. The inventory at present trades at $31.13.
Be aware: Two MLPs have been carved out because the 2012 tender: CVR Refining the refining portion and CVR Companions (UAN) the nitrogen fertilizer unit. CVR Power had majority possession stake in each. In August 2015, CVR Companions agreed to merge with Rentech Nitrogen. Q2 2018 noticed a young supply whereby new CVR Power shares have been exchanged for CVRR at a valuation of $24.26 per widespread unit (0.6335 shares of CVI for one CVRR). ~22M new shares have been issued.
FirstEnergy Corp. (FE): FE is a 3.66% of the portfolio place bought in Q1 2021 at costs between ~$29.50 and ~$35.60 and the inventory at present trades at $39.15.
Xerox Holdings Company (XRX): XRX is a 2.30% of the portfolio place established in This autumn 2015 at costs between $24 and $32. The 4 quarters via Q2 2021 had seen a roughly one-third stake improve. Their total value foundation is ~$25 they usually have a ~22% possession stake within the enterprise. The inventory is now at $16.10. Q2 2022 noticed a minor ~7% improve.
Be aware 1: In December 2017, Icahn launched a proxy battle nominating 4 new board members in an effort to cease the Xerox-Fujifilm deal introduced earlier. In Could 2020, Xerox scrapped the take care of Fujifilm in a settlement with Icahn and Darwin Deason (one other activist alongside Icahn).
Be aware 2: Icahn’s activism earned him three board seats in 2016. Xerox spun-off Conduent and that transaction closed in January 2017. That was adopted with a 1:4 stock-split in June. The costs quoted above are adjusted for these two transactions.
Newell Manufacturers (NWL): NWL is a ~2% of the portfolio place established in Q1 2018 at a cost-basis of $27.40 per share. The inventory is now at ~$13. Q2 2018 noticed a ~10% stake improve at costs between $23 and $28 and that was adopted with a ~15% improve subsequent quarter at costs between $20.50 and $28. There was a ~25% discount in Q1 2022 at $25.86 per share in a repurchase settlement with the corporate.
Be aware 1: They nonetheless have a ~8.2% stake within the enterprise.
Be aware 2: In April 2019, rival activist Starboard Worth got here to an settlement with Carl Icahn whereby they now collectively management Newell’s board.
Southwest Fuel Holdings (SWX): SWX is a 1.88% of the portfolio place established over the 2 quarters via Q3 2021 at costs between ~$63 and ~$72. There was a ~75% stake improve final quarter via a young supply at $82.50 per share. That was adopted with a ~30% additional improve this quarter at costs between ~$70 and ~$88. The inventory at present trades at $59.64.
Be aware 1: They’ve a ~9.8% possession stake within the enterprise.
Be aware 2: The place was made public final October in a regulatory submitting after they stated they have been against Southwest’s acquisition of Questar Pipeline, Dominion Power’s (D) transportation and storage enterprise. A proxy contest and a $75 per share tender supply for all excellent shares quickly adopted. A movement to dam the Quester Pipeline deal however later a deal was reached whereby the CEO was changed.
Bausch Well being (BHC): The ~1% of the portfolio BHC place was bought in This autumn 2020 at costs between ~$15.30 and ~$21 and elevated by ~575% subsequent quarter at costs between ~$21.25 and ~$34.40. The inventory at present trades nicely beneath these ranges at $8.32.
Be aware: They personal 34.7M shares (~10% of the enterprise). Two Icahn nominees are on the board.
Dana Inc. (DAN): The ~1% DAN stake was established in This autumn 2020 at costs between ~$13.25 and ~$20 and elevated by ~200% subsequent quarter at costs between ~$19 and ~$27. Q3 2021 additionally noticed a ~20% stake improve at costs between $20.90 and $24.60. The inventory at present trades at $15.11.
Be aware: Icahn controls ~10% of Dana Inc.
Conduent Inc. (CNDT): The small 0.71% portfolio stake happened on account of Conduent’s spinoff from Xerox that closed in January 2017. Phrases referred to as for Xerox shareholders to obtain Conduent shares within the ratio 1:5. Icahn owned 99M shares of Xerox for which he obtained 19.8M shares of Conduent. CNDT began buying and selling at ~$15 and at present goes for $3.63. Q2 2019 noticed a ~60% stake improve at round $9 per share. That was adopted with a ~20% improve in This autumn 2019 at ~$6.50 per share.
Be aware: Their possession curiosity in Conduent is at ~18% of the enterprise.
SandRidge Power (SD): SD is a 0.38% of the portfolio activist stake established in This autumn 2017 at costs between $16 and $21 and the inventory is now at $14.30.
Be aware: Icahn has a ~13.5% possession stake within the enterprise. He lobbied the board and succeeded in ending the Bonanza Creek acquisition on December 28, 2017. In June 2018, Icahn gained management of Sandridge’s board by successful a proxy battle.
Worldwide Flavors & Fragrances (IFF): IFF is a really small 0.31% of the portfolio stake established in Q1 2022 at costs between ~$116 and ~$150 and the inventory at present trades at ~$86.
Bausch + Lomb Corp. (BLCO): BLCO is a derivative from Bausch Well being that began buying and selling in Could final yr at ~$18 per share. The inventory at present trades at $16.23. Final June, two nominees of Icahn joined the board.
Be aware: Icahn additionally owns important stakes within the following OTC shares: ~36M shares (48.6% of enterprise) of Enzon Prescribed drugs (OTC:ENZN) at a cost-basis of ~$2.70, and ~89% of Viskase Firms (OTCPK:VKSC). He’s additionally identified to have a place in Fannie/Freddie (OTCQB:FNMA) (OTCQB:FMCC). The Enzon place noticed a considerable improve in This autumn 2020 as they participated in a rights providing.
The spreadsheet beneath highlights adjustments to Icahn’s 13F inventory holdings in This autumn 2022:
Carl Icahn’s This autumn 2022 13F Report – Q/Q Comparability (John Vincent (writer))
Editor’s Be aware: This text discusses a number of securities that don’t commerce on a significant U.S. change. Please pay attention to the dangers related to these shares.
