"Tracking Carl Icahn’s Portfolio – Q2 2019 Update"
"Carl Icahn’s 13F portfolio value increased from $24.10B to $26.52B this quarter.He added Occidental Petroleum while dropping Diamondback Energy.Icahn Enterprises, CVR Energy, and Occidental Petroleum are the three largest positions.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  filed on 08/14/2019. Please visit our  to get an idea of his investment philosophy and our  for the fund’s moves during Q1 2019.This quarter, Icahn’s 13F portfolio value increased ~10% from $24.10B to $26.52B. The number of holdings remained steady at 16. The portfolio is very concentrated with the largest five positions accounting for ~82% of the entire holdings: Icahn Enterprises, CVR Energy, Occidental Petroleum, Herbalife, and Cheniere Energy.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 “”.Note: Icahn’s 13F filing is a consolidated report and so should not be viewed as a single portfolio. Specifically, Icahn Enterprises holds several of the businesses and the entities in turn hold Icahn Enterprises. For an idea on the business structure, check-out  (Slide 5).New Stakes:Occidental Petroleum (OXY): OXY is a large (top three) 6.30% of the portfolio position established this quarter at ~$52 per share. The stock currently trades well below that at $45.06. For investors attempting to follow, OXY is a good option to consider for further research.Note: Icahn was opposed to the merger with Anadarko (APC) calling it expensive and risky. He is  to fight for shareholder rights thru board seats at the company.Stake Disposals:Diamondback Energy (FANG): The 2.19% FANG stake came about as a result of the merger with Energen. Icahn held 9.67M shares of Energen for which they received 6.23M shares of Diamondback Energy in the ratio 0.6442:1. Overall, Icahn’s cost-basis on Diamondback Energy was ~$107 per share. Last quarter saw a ~17% selling at prices between $93 and $107. The disposal this quarter was at prices between $96 and $114. The stock is now at ~$100.Stake Decreases:Cheniere Energy (LNG): LNG is a large (top five) 5.57% portfolio position. The bulk of it was purchased in Q3 2015 at prices between $47.50 and $70.50. Q4 2015 saw a ~15% increase at prices between $36 and $54. There was an about turn in Q2 2018: ~28% reduction at ~$65. The stock currently trades at $61.32. There was a ~8% trimming over the last two quarters.Note: Icahn’s ownership stake in the business is ~8%.Freeport-McMoRan Inc. (FCX): FCX is a ~2% of the portfolio stake established in Q3 2015 at prices between $7.50 and $18.50. Q4 2016 saw a ~12% trimming at prices between $9.50 and $16.50. Q3 2017 saw another ~16% selling at prices between $11.89 and $15.55 and that was followed with a one-third reduction in Q1 2018 at prices between $17 and $20. The stock currently trades at $9.14. Last quarter also saw a ~12% selling. There was marginal trimming this 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, and 185.3M as of Q2 2019. The stock currently trades at ~$69. The increase this year was at ~$70 per share.Note: IEP Book Value per share was ~$29 as of June.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 $7.19. This quarter saw a ~60% stake increase at around $9 per share.Note: Regulatory filings since the quarter ended show them owning 38.15M shares (18.05% of the business). This is compared to 31.6M shares in the 13F report. The increase was at ~$6.50 per share.Kept Steady:CVR Energy Inc. (CVI): CVI is a large (top tree) ~13% of the 13F portfolio position first purchased in Q4 2011. The bulk of the current position (71.2M shares: ~71% of the whole business) was purchased through a $30 per share tender offer in H1 2012. The stock currently trades at $42.05.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: Icahn disclosed that CVI stock including dividends was up ~62% as of EOY2016 from the tender offer at $30. CVI stock was trading at $25.39 at the time. So, his adjusted cost-basis was $15.67 as of that date.Herbalife (HLF): HLF is a large (top five) ~6% of the 13F portfolio stake first purchased in Q1 2013 in the high-teens price range. Q3 2016 saw a ~15% increase at prices between $29 and $34 and that was followed with a similar increase the following quarter at prices between $24 and $32. Q2 2018 saw the position sold down by ~25% at $52.50 per share. The stock currently trades at $34.90.Note 1: Icahn controls ~22% of the business. In March 2018, Icahn disclosed that his profit on HLF was ~$1B. The stock was trading at ~$46 at the time.Note 2: The prices quoted above are adjusted for a 2-for-1 stock-split done in April 2018.Caesar’s Entertainment (CZR): The position was disclosed in a regulatory filing in March which showed them owning 66.05M shares of Caesars Entertainment (~10% of the business). 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 thru equity swaps and convertible bonds). The stock is now at $11.60.Note: 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 CZR held).Xerox Corporation (XRX): XRX is a ~3% of the portfolio position established in Q4 2015 at prices between $24 and $32. The stock is now at $28.59. There was a ~5% trimming in Q1 2018.Note 1: Icahn controls 10.60% of the business. In December 2017, Icahn launched a proxy battle nominating four new board members in an effort to stop the Xerox-Fujifilm deal announced earlier. In early May, Xerox scrapped the deal with Fujifilm in a settlement with Icahn and Darwin Deason (another activist alongside Icahn).Note 2: Icahn’s activism earned him three board seats in 2016. Xerox spun-off Conduent and that transaction closed in January 2017. That was followed with a 1:4 stock-split in June. The prices quoted above are adjusted for these two transactions.Newell Brands (NWL): NWL is a 2.39% of the portfolio position established in Q1 2018 at a cost-basis of $27.40 per share. The stock is now well below that at $16.55. Q2 2018 saw a ~10% stake increase at prices between $23 and $28 and that was followed with a ~15% increase next quarter at prices between $20.50 and $28. Q4 2018 also saw a ~6% stake increase. Overall, their cost-basis is $26.40.Note: In April last year, rival activist Starboard Value came to an  with Carl Icahn whereby they now together control Newell’s board.Navistar International (NAV): NAV is a 2.17% of the 13F portfolio long-term position. The last significant activity follow: ~22% increase in Q2 & Q3 2014 at prices between $29 and $38. The stock currently trades at $24.10.Note: Icahn controls ~17% of the business.Hertz Global Holdings (HTZ): HTZ is a 1.46% of the portfolio position. It was established in Q3 2014 at a cost-basis of ~$105. In Q4 2014, the stake was increased by just over one-third at prices between $72 and $95. Q4 2015 saw another ~23% increase at prices between $51 and $74. Q4 2016 saw another ~125% increase at prices between $21 and $40. The stock currently trades at $12.09. There was a ~17% selling last quarter at ~$19.45.Note 1: Regulatory filings since the quarter ended show them owning ~41.9M shares (29.49% of business). This is compared to 24.26M shares in the 13F report. The additional shares came about as a result of the rights offering at $12.95 per share. The total outlay so far is $1.77B and so their overall cost-basis is $42.24.Note 2: The prices quoted above are adjusted for the Herc Holdings spinoff in Q2 2016.Herc Holdings (HRI): HRI is a very small 0.78% of the portfolio position established in Q2 2016 as a result of the spinoff of Herc Holdings from Hertz Global Holdings. There was a ~4% stake increase in Q3 2017 at ~$38.50. The stock started trading at ~$33 and currently goes for $42.30.Note: Icahn controls ~16% of the business.Welbilt Inc. (WBT) previously Manitowoc Food Service: The very small 0.63% of the portfolio WBT stake was established as a result of the spin-off from Manitowoc. The spin-off terms called for one share of WBT for each share of MTW held. Icahn held 10.58M shares of MTW for which he received the same number of WBT shares. Regular-way trading started in early March 2016 with WBT at $13.41. It currently trades at $15.75 compared to Icahn’s overall cost-basis of $16.52. There was a ~5% trimming in Q4 2017.Note: Icahn controls 8.52% of the business.Tenneco Inc. (TEN): Tenneco is a small 0.24% portfolio position. It came as partial consideration for the acquisition of Federal-Mogul: Tenneco issued ~5.65M Class A shares and ~23.79M Class B (non-voting) shares. The stock is now at $8.80.Sandridge Energy (SD): SD is a 0.13% of the portfolio activist stake established in Q4 2017 at prices between $16 and $21 and the stock is now well below that range at $4.90.Note: Icahn has a 13.51% 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.Note 1: Regulatory filings since the quarter ended show them owning 54.8M shares (~20% of the business) of Cloudera (CLDR). A majority of the position is thru forward contracts expiry in mid-2021 at prices between $5.15 and $7. The stock is currently at $6.83.Note 2: Icahn also owns significant stakes in the following OTC stocks as per latest regulatory filings: ~15% of Enzon Pharmaceuticals (ENZN), and ~75% of Viskase Companies (VKSC). He is also known to have a position in Fannie/Freddie (FNMA) (FMCC).Note 3: Icahn had a majority ownership of Voltari Corp (VLTC) and has an agreement to buy the remaining shares at 86c.The spreadsheet below highlights changes to Icahn’s 13F stock holdings in Q2 2019:Regulatory Filings thru 5/23/2019: 13D/A – 5/23 – CNDT – 31.6M shares – 15.04% of business, Form 4 – acquired 210K shares at $9. 13D/A – 5/20 – 31.4M shares – 14.94% of business, Form 4 - ~2.5M shares acquired at $8.85. Form 4 – 5/10 - ~6M shares acquired in the high-8s, 13D/A – 28.9M shares – 13.5% of business, a few previous ones as well. 13D/A – 5/15 – LNG – 21.65M shares – 8.41% of business, Form 4 – 4/19 – IEP – 4.8M shares acquired at $73.3, 180.23M shares – 91.9% of business, 13D/A – 3/29 – CZR – misc, Form 4 – 3/12 – 15M shares in forward cntracts, Form 3 – 3/7 – 99.25M shares beneficially owned – majority in equity swaps and convertible notes, 13D/A – 3/11 – 120M shares – 17.74% of business – previous as well. 13D/A – 3/13 – VLTC – merger related misc – 2/22 – offer increase to 80c related, Form 4, 13D/A – HTZ – 3/5 – 5M shares sold @ 19.45 – 24.26M shares – 28.91% of business, 13D/A – XRX – 2/25 – 23.5M shares – 10.21% of business,"