Carl Icahn - Icahn Capital Management Portfolio
Carl Icahn - Icahn Capital Management Q3 2024 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 2024, with a total portfolio value $9,877,196,000
Carl Icahn’s Icahn Capital Management Q3 2024 top 10 portfolio holdings
IEP – Icahn Enterprises
Portfolio Allocation: 59.3%
Recent Activity: Added 6.62%
Shares Held: 433,206,933
Reported Price: $13.52 per share
Value at Reported Price: $5,856,958,000
Icahn Enterprises remains the cornerstone of Carl Icahn’s portfolio, representing a substantial 59.3% of the portfolio. This investment showcases Icahn’s strong conviction in his diversified holding company, which spans various sectors including energy, real estate, and automotive. The increase in shares demonstrates his commitment to his own enterprise and its long-term growth.
CVI – CVR Energy Inc.
Portfolio Allocation: 15.55%
Recent Activity: No change reported
Shares Held: 66,692,381
Reported Price: $23.03 per share
Value at Reported Price: $1,535,926,000
CVR Energy is a major holding in Icahn’s portfolio, reflecting his interest in the energy sector. CVR specializes in petroleum refining and nitrogen fertilizer production, providing exposure to essential commodities that can benefit from fluctuations in energy and agricultural markets.
SWX – Southwest Gas Holdings Inc.
Portfolio Allocation: 8.23%
Recent Activity: No change reported
Shares Held: 11,022,604
Reported Price: $73.76 per share
Value at Reported Price: $813,027,000
Southwest Gas Holdings, a utility company focused on natural gas distribution and pipeline services, is a significant holding. This investment offers Icahn exposure to the utility sector, which provides stable cash flows and can serve as a defensive position in the portfolio.
IFF – International Flavors & Fragrances Inc.
Portfolio Allocation: 3.98%
Recent Activity: No change reported
Shares Held: 3,750,000
Reported Price: $104.93 per share
Value at Reported Price: $393,488,000
International Flavors & Fragrances (IFF) is a leader in the specialty chemicals sector, producing flavors, fragrances, and cosmetic ingredients. This holding aligns with Icahn’s interest in consumer staples and the specialty chemicals industry, which provides essential products to various sectors.
BHC – Bausch Health
Portfolio Allocation: 2.87%
Recent Activity: No change reported
Shares Held: 34,721,118
Reported Price: $8.16 per share
Value at Reported Price: $283,324,000
Bausch Health, a company focused on pharmaceuticals and medical devices, adds diversification into healthcare. This investment reflects Icahn’s interest in undervalued or turnaround opportunities, as Bausch Health has been restructuring its business to improve profitability.
UAN – CVR Partners LP
Portfolio Allocation: 2.65%
Recent Activity: No change reported
Shares Held: 3,892,000
Reported Price: $67.13 per share
Value at Reported Price: $261,270,000
CVR Partners, a producer of nitrogen fertilizer, complements Icahn’s energy and agricultural exposure. The company benefits from stable demand for agricultural products, offering Icahn’s portfolio an additional layer of resilience in commodity-based industries.
DAN – Dana Inc.
Portfolio Allocation: 1.53%
Recent Activity: No change reported
Shares Held: 14,286,505
Reported Price: $10.56 per share
Value at Reported Price: $150,865,000
Dana Inc., a supplier of automotive and commercial vehicle components, reflects Icahn’s interest in the automotive sector. Dana’s focus on powertrain and electric vehicle components aligns with evolving industry trends, providing Icahn with exposure to automotive innovation.
AEP – American Electric Power
Portfolio Allocation: 1.25%
Recent Activity: No change reported
Shares Held: 1,205,300
Reported Price: $102.60 per share
Value at Reported Price: $123,664,000
American Electric Power (AEP) is a major utility holding, offering Icahn additional exposure to stable, income-generating assets. As one of the largest electric utility companies in the U.S., AEP provides reliable cash flows and a defensive position within the portfolio.
JBLU – JetBlue Airways Corp.
Portfolio Allocation: 1.18%
Recent Activity: No change reported
Shares Held: 17,727,029
Reported Price: $6.56 per share
Value at Reported Price: $116,289,000
JetBlue Airways adds a small but notable stake in the airline industry. This investment may reflect a bet on a recovery in travel demand, providing Icahn with potential upside in the cyclical airline sector.
CZR – Caesars Entertainment
Portfolio Allocation: 1.03%
Recent Activity: No change reported
Shares Held: 2,440,109
Reported Price: $41.74 per share
Value at Reported Price: $101,850,000
Caesars Entertainment, a prominent player in the gaming and hospitality sector, rounds out the portfolio. This position offers Icahn exposure to the consumer discretionary sector, with potential for growth in the leisure and hospitality market.
Analysis of Carl Icahn’s Q3 2024 Portfolio Strategy
1. Heavy Concentration in Icahn Enterprises
Icahn Enterprises, comprising nearly 60% of the portfolio, demonstrates Icahn’s commitment to his diversified holding company. This substantial allocation suggests a strong belief in the long-term value of his own enterprise, which spans various industries.
2. Focus on Energy and Utilities
The holdings in CVR Energy, Southwest Gas, CVR Partners, and American Electric Power emphasize a focus on energy and utilities. These sectors provide Icahn with steady income potential and resilience against market fluctuations, particularly through essential services and commodities.
3. Selective Diversification into Healthcare and Consumer Discretionary
Investments in Bausch Health and Caesars Entertainment add diversification into healthcare and consumer discretionary, respectively. These positions reflect Icahn’s interest in undervalued or cyclical recovery opportunities.
Conclusion
Carl Icahn’s Q3 2024 portfolio exhibits a strong conviction in his own enterprise, complemented by a mix of energy, utilities, and selective investments in healthcare and consumer discretionary. The portfolio’s structure reflects a strategy that combines high-conviction holdings with targeted exposure to essential sectors, providing both stability and growth potential in a volatile market environment.
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's Investing Principles
Some people get rich studying artificial intelligence. Me, I make money studying natural stupidity.
Carl Icahn
In life and business, there are two cardinal sins. The first is to act precipitously without thought and the second is to not act at all.
Carl Icahn
When most investors, including the pros, all agree on something, they’re usually wrong.
Carl Icahn
In risk there is reward…
Carl Icahn
The cardinal rule is to have enough capital at the end of the day.
Carl Icahn
The big money is not in the buying and selling, but in the waiting.
Carl Icahn