Carl Icahn - Icahn Capital Management Portfolio

Carl Icahn - Icahn Capital Management Q4 2023 Portfolio

Icahn Capital Management, a hedge fund managed by Carl Icahn, disclosed 14 security holdings in their SEC 13F filing for the fourth quarter of 2023, with a total portfolio value $10,914,055,000

 

Top Holdings:

As of 31 December, 2023, Carl Icahn’s  Icahn Capital Management  top 10 holdings were:

 

Icahn Enterprises (IEP)

Constituting a whopping 57.94% of the portfolio, IEP is the cornerstone of Icahn’s investments. The increase in shares by 4.86% and the current price appreciation of 18.27% from the reported price reflect confidence and positive performance. IEP is a diversified conglomerate with interests across various sectors, which aligns with Icahn’s strategy of maintaining control and influence over his investments.

 

CVR Energy Inc. (CVI)

With 18.52% of the portfolio, CVI shows Icahn’s significant stake in the energy sector. The stock has seen a healthy rise of 16.34% from the reported price, possibly benefiting from fluctuations in energy prices and effective corporate strategies.

 

Southwest Gas Holdings Inc. (SWX)

Accounting for 6.4% of the portfolio, SWX’s inclusion may be based on its stable business model as a utility company. Utilities are often seen as defensive investments, offering steady dividends and resilience during market volatility.

 

Occidental Petroleum Warrants (OXY.WS)

The 5.88% allocation to OXY warrants indicates Icahn’s bullish stance on the oil and gas industry. Warrants provide leverage, suggesting Icahn is positioning for a significant upside in Occidental Petroleum’s stock.

 

Bausch Health (BHC)

This healthcare and pharmaceutical company makes up 2.55% of the portfolio.

 

FirstEnergy Corp. (FE)

Although Icahn has reduced his stake by 58.22%, the remaining 1.98% indicates that there may still be perceived value in this utility provider, possibly due to its steady cash flows and dividends.

 

Dana Inc. (DAN)

Dana, an automotive supplier, accounts for 1.91% of the portfolio.

 

Conduent Inc. (CNDT)

At 1.28%, Conduent represents Icahn’s investment in business process services.

 

American Electric Power (AEP)

This new buy into a utility company, making up 0.9% of the portfolio, could signify Icahn’s interest in stable, regulated businesses amidst a potentially volatile market environment.

 

SandRidge Energy Inc. (SD)

Holding 0.6% of the portfolio, SandRidge is an oil and natural gas company.

Notable Holdings:

Bausch + Lomb Corp (BLCO) and Illumina Inc. (ILMN) represent investments in the healthcare sector.

International Flavors & Fragrances Inc. (IFF), although a smaller part of the portfolio, could be a play on the specialty chemicals industry, known for its diverse customer base and potential for steady growth.

Newell Brands Inc. (NWL), a consumer goods company, has seen a significant drop in its current price, suggesting a potential undervaluation or skepticism about the company’s future performance.

Analysis Summary:

Carl Icahn’s Q4 2023 portfolio shows a heavy concentration in Icahn Enterprises, with significant positions in the energy sector. His investments reflect a combination of seeking value, leveraging opportunities through warrants, and maintaining positions in stable, dividend-yielding utilities. The mix of holdings indicates a blend of aggressive growth strategies and defensive positioning, characteristic of Icahn’s investment style.

Analyzing CVR Energy's (CVI) Robust Financials from Carl Icahn's Perspective

Liquidity and Cash Reserves:

As of 17 February, 2024 CVR Energy shows a strong liquidity position with $889 million in cash and equivalents in the trailing twelve months (TTM). While there was no growth in cash reserves from 2021 to 2022, the company had a significant drop of 23.54% from 2020 to 2021, followed by a steady recovery. A high quick ratio of 0.92 and a current ratio of 1.44 suggest the company can comfortably meet short-term obligations.

 

Asset Management:

The company maintains a solid asset base, with total assets increasing over the past few years to $4.421 billion in the TTM. The asset turnover rate stands at 2.29, indicating effective use of assets to generate revenue.

 

Debt Management:

CVR Energy has managed its debt levels prudently, as evidenced by a debt to equity ratio of 1.65 and a manageable debt to EBITDA ratio of 1.15. The interest coverage ratio of 17.27 signifies the company’s strong capability to meet interest expenses.

 

Profitability:

The company has demonstrated significant profitability with a net income of $463 million in 2022 and a remarkable ROE of 108.30% in the TTM. These figures point to efficient management and potential undervaluation.

Valuation Ratios:

CVR Energy’s valuation ratios such as PE, PS, and P/FCF are compelling, particularly the PE ratio of 4.46 and P/FCF ratio of 4.27 in the TTM, indicating a potential undervaluation of the company’s stock.

 

Shareholder Returns:

The dividend yield stands at a healthy 2.85%, with a considerable increase in dividend growth. However, the payout ratio in 2022 is relatively high at 104.30%, which may not be sustainable long-term without earnings growth.

 

Market Capitalization and Shareholder Value:

The market capitalization shows a significant uptick in growth, with an 86.44% increase from 2021 to 2022, reflecting positive investor sentiment. The total shareholder return is also notable at 2.85% in the TTM.

 

Investment Considerations:

Investors like Carl Icahn may find CVR Energy’s strong cash position, solid asset base, and profitability metrics appealing. The valuation ratios suggest that the stock is undervalued relative to its financial performance, and the high ROE and ROIC could indicate that the company is positioned well for delivering strong shareholder returns. The high interest coverage ratio and manageable debt levels provide additional comfort regarding the company’s financial health.

 

In conclusion, CVR Energy’s current financial health, presents a positive investment case for investors looking for undervalued companies with strong profitability and solid fundamentals.

Who is Carl Icahn ?

1936:

  • Carl Celian Icahn is born on February 16, 1936, in Queens, New York City, United States.

1961:

  • Carl Icahn starts his career on Wall Street as a stockbroker at Dreyfus & Company.

1968:

  • Icahn establishes his own investment firm, Icahn & Co., which specializes in options trading.

1985:

  • Icahn launches a hostile takeover bid for the airline company TWA (Trans World Airlines), which eventually results in him gaining control of the company.

1986:

  • Icahn sells TWA’s profitable London routes to American Airlines for a substantial profit, leading to accusations of asset stripping.

1988:

  • Icahn acquires a significant stake in Texaco, an oil company, and initiates a proxy battle to gain control of the company. The battle ends in a settlement, with Icahn gaining several seats on the board of directors.

1990:

  • Icahn takes over the troubled airline, Eastern Air Lines, with the intention of turning it around. However, he is unable to save the company, and Eastern Air Lines goes bankrupt in 1991.

1997:

  • Icahn creates Icahn Enterprises LP, a diversified holding company, to manage his investments and business ventures.

2000:

  • Icahn launches a proxy fight against Yahoo!, urging the company to accept a takeover bid from Microsoft. Although unsuccessful in his bid, he garners attention for his aggressive tactics.

2006:

  • Icahn begins acquiring shares in the technology company Motorola and pressures the company to restructure and unlock shareholder value. This leads to the separation of Motorola into two separate entities, Motorola Solutions and Motorola Mobility.

2008:

  • Icahn purchases a large stake in the investment bank Bear Stearns, which is facing significant financial troubles during the subprime mortgage crisis. Ultimately, Bear Stearns is sold to JPMorgan Chase.

2013:

  • Icahn becomes involved in a highly publicized battle with the board of directors of Dell Inc., opposing the company’s plan to go private. Although unsuccessful in blocking the deal, Icahn negotiates a higher price for shareholders.

2016:

  • Icahn becomes an informal advisor to then-U.S. President-elect Donald Trump on regulatory reform. He plays a role in shaping Trump’s economic policies.

2020:

  • Icahn liquidates his entire stake in the energy company Cheniere Energy, which he had acquired in 2015. The move comes amidst concerns about the liquefied natural gas (LNG) market and declining energy prices.

2021:

  • Icahn discloses a substantial stake in the ride-hailing company, Lyft, and reportedly pushes for changes to increase shareholder value.

2022:

  • Icahn sells his remaining stake in Lyft after the company’s stock price rises significantly, resulting in a substantial profit.

2023:

  • Carl Icahn continues to be actively involved in the investment world, using his vast wealth and influence to pursue various investment opportunities and activism in publicly traded companies.

Interesting Facts


Carl Icahn is known as an activist investor, frequently taking significant stakes in companies and advocating for changes to boost shareholder value.

He has a reputation for aggressive tactics, including proxy fights, hostile takeovers, and public confrontations with company management.

Icahn has been involved in a wide range of industries, including airlines, energy, technology, and finance.


In addition to his investments, Icahn is known for his philanthropy. He has donated substantial amounts to various causes, including medical research and education.

Icahn is an avid poker player and has participated in high-stakes poker tournaments, occasionally donating his winnings to charity.

He is known for his strong opinions on corporate governance and often advocates for changes to board structures and executive compensation practices.

Icahn has faced criticism and legal challenges throughout his career, with some accusing him of short-term profit-seeking at the expense of long-term company health.

Despite his controversial reputation, Icahn’s influence and impact on the corporate world cannot be overlooked, as he has left an indelible mark on numerous companies and industries.

 

Carl Icahn - Icahn Capital Management 2023 Q3 Portfolio

Icahn Capital Management, a hedge fund managed by Carl Icahn, disclosed 14 security holdings in their SEC 13F filing for the third quarter of 2023, with a total portfolio value $12,080,415,000

 

Top 7 Holdings

As of September 30, 2023, Carl Icahn’s  Icahn Capital Management top 7 holdings were

1.             Icahn Enterprises (IEP)

2.             CVR Energy Inc. (CVI)

3.             Occidental Petroleum Warrants (OXY.WS)

4.             Southwest Gas Holdings Inc. (SWX)

5.             Bausch Health (BHC)

6.             FirstEnergy Corp. (FE)

7.             Dana Inc. (DAN)

 

Icahn Enterprises (IEP) – With a dominant 57.44% of the portfolio, Icahn Enterprises is a diversified holding company engaged in a variety of businesses. Icahn’s significant investment here likely reflects his control and influence over the company, given that it’s his own conglomerate.

 

At close: Feb 12, 2024, 4:00 PM

 

CVR Energy Inc. (CVI) – At 18.79%, CVR Energy is a petroleum refiner and marketer of high-value transportation fuels. Icahn may see value in the energy sector’s potential for high cash flow and may also be leveraging his influence to shape the company’s strategic direction.

 

Occidental Petroleum Warrants (OXY.WS) – Holding 5.9% of the portfolio, this investment in the form of warrants allows the holder to purchase Occidental Petroleum’s stock at a predetermined price. It indicates a bullish view on the company’s future, offering leverage to capitalize on potential price increases of OXY shares.

 

Southwest Gas Holdings Inc. (SWX) – Comprising 5.51%, Southwest Gas provides natural gas service to customers in the southwestern U.S. This utility investment suggests a focus on stable cash flows and a defensive posture within the portfolio.

 

FirstEnergy Corp. (FE) – At 3.99%, FirstEnergy is an electric utility company. The investment might be motivated by the utility’s regular dividends and potential as a stable earnings generator within the portfolio.

 

Bausch Health (BHC) – Representing 2.36%, Bausch Health is a multinational specialty pharmaceutical company. Icahn’s stake could be based on a turnaround strategy, value play, or a belief in the company’s undervalued assets.

 

Dana Inc. (DAN) – With 1.73%, Dana is a supplier of drivetrain, sealing, and thermal-management technologies. The investment could be driven by potential growth in the auto parts sector or specific strategic moves by the company.

 

Carl Icahn is known for his activist investing strategy, often taking large stakes in companies where he can influence management and strategic decisions. His portfolio reflects a mix of opportunistic bets and foundational investments, often in companies where he can push for operational or strategic changes to unlock value. The high concentration in Icahn Enterprises also indicates a preference for having significant control and influence over his investment choices.

“You learn in this business: It you want a friend, get a dog”

Carl Icahn

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