This article is part of a series that provides an ongoing analysis of the changes made to Carl Icahn’s 13F portfolio on a quarterly basis. It is based on Icahn’s regulatory 13F Form filed on 08/14/2024. Please visit our Tracking Carl Icahn’s Portfolio series to get an idea of his investment philosophy and our previous update for the fund’s moves during Q1 2024.
The number of holdings in the 13F filing remained steady at 14. The top five holdings in the filing are Icahn Enterprises, CVR Energy, Southwest Gas Holdings, International Flavors & Fragrances, and CVR Partners LP.
Carl Icahn is best known for building sizable stakes in businesses and then pushing for changes to increase shareholder value. To learn more about his investing style and philosophy check out “King Icahn: The Biography of a Renegade Capitalist”.
Note: Icahn’s 13F cannot be considered a listing of his holdings. Carl Icahn is the majority owner of Icahn Enterprises (NASDAQ:IEP) which holds several of the businesses and the entities in turn hold IEP. His 13F is a consolidated report. IEP Investor Presentation (Slide 5) has details of the business structure.
New Stakes:
Caesars Entertainment (CZR): CZR is a 0.89% of the portfolio position purchased this quarter at prices between $31.85 and $43.98 and the stock currently trades at $37.09.
Note: It was reported in May that Ichan has established a stake in Caesars Entertainment – he has no plans for activism this time around. From early 2019, he was involved in activism at Caesars. Details follow: They acquired ~66M shares of Caesars Entertainment (~10% of the business) in early 2019. This included ~5.8M shares in convertible bonds. Total outlay was $646M for a cost-basis of $9.78 per share. The position was since increased to ~120M shares of beneficial ownership (17.55% of business, majority through equity swaps and convertible bonds). Icahn pushed for a sale of the company and in April Anthony Rodio who previously ran Icahn’s Tropicana Entertainment, was appointed CEO in a deal with the company. In June, Eldorado Resorts (ERI) agreed to buy the company in a cash-and-stock deal ($8.40 cash and 0.0899 ERI shares for each share of old CZR held). The transaction closed in July 2020, and the combined business took the “Caesars Entertainment” name. Icahn exited the position soon after.
Centuri Holdings (CTRI): The small 0.47% CTRI stake was established this quarter at $21 per share. CTRI is a carve-out from Southwest Gas that started trading in April. Icahn acquired the shares through a concurrent private placement that closed immediately following the IPO. Shares started trading at ~$24 and is currently well below that price at $16.56.
Note: Southwest Gas has a six-month lock-up on their stake that expires in October.
Stake Disposals:
Occidental Petroleum (OXY): The ~6% of the portfolio position was established in Q3 2020 when 19.3M warrants (strike 22, 8/3/2027 expiry) were purchased for ~$2.75 per warrant. The stake saw a ~20% selling in Q3 2021. There were minor increases in the five quarters through Q1 2023. The disposal this quarter was at prices between ~$37 and ~$47. The warrant currently trades at $31.74.
Note: They also had a large position in the common stock of OXY but that was sold in Q1 2022.
Conduent Inc. (CNDT): The small ~1% portfolio stake came about as a result of Conduent’s spinoff from Xerox that closed in January 2017. Terms called for Xerox shareholders to receive Conduent shares in the ratio 1:5. Icahn owned 99M shares of Xerox for which he received 19.8M shares of Conduent. CNDT started trading at ~$15 and currently goes for $3.75. Q2 2019 saw a ~60% stake increase at around $9 per share. That was followed with a ~20% increase in Q4 2019 at ~$6.50 per share. The elimination this quarter was at $3.47 per share.
Note: Their ownership interest in Conduent was ~18% of the business as of last quarter.
Stake Increases:
Icahn Enterprises (IEP): IEP position has seen consistent increases over the years. The position size increased 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, 300M shares in 2022, and 406M shares as of Q2 2024. The stock currently trades at $11.15. This is compared to $8.89 NAV per share as of Q2 2024.
Note 1: Regulatory filings since the quarter ended show them owning 406M shares (86.15% of business).
Note 2: During May 2023, IEP stock price dropped sharply following a short report from Hindenburg Research.
Note 3: The stake increase over the years is primarily due to them taking the dividend consideration in additional shares rather than cash. The dividend was cut by 50% to $1 per unit in August 2023.
Kept Steady:
CVR Energy Inc. (CVI): CVI is a top three 16.47% of the 13F portfolio position first purchased in Q4 2011. The bulk of the current position (66.69M shares: ~66% of the whole business) was purchased through a $30 per share tender offer in H1 2012. Q3 2023 saw a ~6% trimming at an average price of ~$35.20 per share. The stock currently trades at $22.72.
Note 1: Two MLPs were carved out since the 2012 tender: CVR Refining the refining portion and CVR Partners (UAN) the nitrogen fertilizer unit. CVR Energy had majority ownership stake in both. In August 2015, CVR Partners agreed to merge with Rentech Nitrogen. Q2 2018 saw a tender offer whereby new CVR Energy shares were exchanged for CVRR at a valuation of $24.26 per common unit (0.6335 shares of CVI for one CVRR). ~22M new shares were issued.
Note 2: Their ~$30 implied cost-basis is vastly overstated due to carve-outs and special dividends paid out over the years.
Southwest Gas Holdings (SWX): SWX is a ~7% of the portfolio position established over the two quarters through Q3 2021 at prices between ~$63 and ~$72. There was a ~75% stake increase during Q3 2022 through a tender offer at $82.50 per share. That was followed with a ~60% further increase during Q1 2023 at prices between ~$59 and ~$67. The stock currently trades at $70.11. There was a minor ~3% stake increase during Q2 2023 and a ~2% increase in the next quarter.
Note 1: They have a ~15% ownership stake in the business.
Note 2: The position was made public in an October 2022 regulatory filing when they said they were opposed to Southwest’s acquisition of Questar Pipeline, Dominion Energy’s (D) transportation and storage business.
International Flavors & Fragrances (IFF): IFF is now a 3.29% of the portfolio stake. A small position was established in Q1 2022 at prices between ~$116 and ~$150. The last quarter saw the stake built at prices between ~$78 and ~$86. The stock currently trades at ~$103.
CVR Partners LP (UAN): CVR Energy has a ~37% ownership stake in CVR Partners, and it is listed separately in the 13F report as of Q1 2024. UAN currently trades at $67.43.
Bausch Health (BHC): The 2.23% of the portfolio BHC position was purchased in Q4 2020 at prices between ~$15.30 and ~$21 and increased by ~575% in the next quarter at prices between ~$21.25 and ~$34.40. The stock currently trades at $6.19.
Note: They own 34.7M shares (~10% of the business). Two Icahn nominees are on the board.
Dana Inc. (DAN): The 1.60% DAN stake was established in Q4 2020 at prices between ~$13.25 and ~$20 and increased by ~200% in the next quarter at prices between ~$19 and ~$27. Q3 2021 also saw a ~20% stake increase at prices between $20.90 and $24.60. The stock currently trades at $10.46.
Note: Icahn controls ~10% of Dana Inc.
JetBlue Airways (JBLU): The 1.10% of the portfolio stake in JBLU was established during the last quarter at prices between ~$4.70 and ~$7.45. The stock currently trades at $5.39.
Note: Including forward contracts, they have a ~10% ownership stake in JBLU.
American Electric Power (AEP): AEP is a small 0.98% stake established during Q4 2023 at prices between ~$71 and ~$84 and the stock currently trades at ~$103.
SandRidge Energy (SD): SD is a 0.57% of the portfolio activist stake established in Q4 2017 at prices between $16 and $21 and the stock is now at $12.39.
Note: Icahn has a ~13.5% ownership stake in the business. He lobbied the board and succeeded in ending the Bonanza Creek acquisition on December 28, 2017. In June 2018, Icahn gained control of Sandridge’s board by winning a proxy battle.
Bausch + Lomb Corp (BLCO): BLCO is a spinoff from Bausch Health that started trading in May 2022 at ~$18 per share. The stock currently trades at $15.89. In June 2022, two nominees of Icahn joined the board.
Illumina Inc. (ILMN): ILMN is a small 0.41% of the portfolio stake established during Q1 2023 at prices between ~$194 and ~$233 and the stock currently trades at ~$130.
Note: Icahn also owns ~90% of Viskase Companies (OTCPK:VKSC). He is also known to have a position in Fannie/Freddie (OTCQB:FNMA) (OTCQB:FMCC).
The spreadsheet below highlights changes to Icahn’s 13F stock holdings in Q2 2024:
Source: John Vincent. Data constructed from Carl Icahn’s 13F filings for Q1 2024 and Q2 2024.
Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
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