"Tracking Carl Icahn’s Portfolio – Q4 2014 Update"
"Carl Icahn’s US long portfolio decreased ~5% from $33.63B to $31.90B this quarter.Hertz Global stake was increased substantially to over ~11% of the business.Carl Icahn established an activist stake in Manitowoc and he controls ~7.8% of the business.This article is part of a series that provides an ongoing analysis of the changes made to Carl Icahn’s US stock portfolio on a quarterly basis. It is based on Icahn’s regulatory  filed on 02/17/2015. Please visit our  to get an idea of his investment philosophy and our  highlighting the fund’s moves during Q3 2014.This quarter, Icahn’s US long portfolio decreased 5.17% from $33.63B to $31.90B. The number of holdings in the portfolio increased from 21 to 22: Manitowoc Company is the new stake. The portfolio is very concentrated with the largest five positions accounting for ~73% of the entire holdings: Icahn Enterprises (31.55%), Apple Inc. (18.26%), CVR Energy Inc. (8.64%), eBay Inc. (8.14%), and Federal Mogul Corporation (6.11%).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 “”.Stake Disposals:None.New Stakes:Manitowoc Company (MTW): MTW is a very small 0.31% of the portfolio activist stake established this quarter at prices between $16.60 and $23.05. The position was more than doubled to 10.58M shares (7.8% of the business) after the quarter ended. The stock currently trades at $21.27. For investors attempting to follow Icahn, MTW is a good option to consider for further research.Note: Carl Icahn reached an agreement with Manitowoc earlier this month. Manitowoc’s Cranes and Food Services businesses is to be separated and Icahn gets a seat on the board.Stake Decreases:None.Stake Increases:Hertz Global Holdings (HTZ): HTZ is a fairly large 4.06% of the US long portfolio position. It was established last quarter at an average cost-basis of $28.35. This quarter, the stake was increased by just over one-third at prices between $19.38 and $25.47. The stock currently trades at $23.65. Icahn owns 11.34% of the business. For investors attempting to follow Icahn, HTZ is a very good option to consider for further research.Navistar International (NAV): NAV is a relatively small 1.71% of the US long portfolio position that was increased by ~12% in Q3 2013 at prices between $27.50 and $40. Q2 2014 saw a ~8% increase at prices between $31.93 and $38.35 and this quarter saw a further ~14% increase at prices between $29.10 and $37.76. The stock currently trades near the low-end of those ranges at $29.16. Icahn controls 19.99% of the business.Ebay Inc. (EBAY): EBAY is a large 8.14% of the US long portfolio position (~3.8% of the business) established in Q1 2014 at prices between $51 and $59. The position was increased by ~11% in Q2 2014 at prices between $48 and $56 and by ~49% last quarter at prices between $50 and $56.63. This quarter also saw a marginal increase. The stock currently trades at $57.65. The initial stake was first disclosed in eBay’s FY 2013 earnings release when it was also revealed that Carl Icahn proposed spinning off PayPal and nominated two board members. On 4/10/2014, an agreement was reached that prevented an immediate proxy fight. On 9/30/2014, eBay announced plans to spinoff PayPal into a separate publicly traded company.Icahn Enterprises (IEP): IEP is a very long-term position that has seen consistent buying over the years. In 2013, the position size increased from ~98M shares to ~102M shares and 2014 saw a further increase to ~109M shares. This quarter saw a marginal increase. The last big increase happened in 2012 when around 20M shares were purchased at prices between $36.50 and $42.50. The stock currently trades at $98.25.Kept Steady:Seventy Seven Energy (SSE): SSE is a minutely small 0.08% of the US long portfolio position established last quarter as a result of the spin-off of SSE from Chesapeake Energy. Chesapeake Energy shareholders received one SSE share for 14 Chesapeake Energy shares held. Icahn’s current stake is consistent with that ratio. The stock traded between $4.58 and $23.74 during the quarter and it currently at $5.33. Icahn controls 9.34% of the business and the stock is down a whopping 78% since the spin-off.Gannett Inc. (GCI): GCI was a small 0.26% (2.7M shares) of the US long portfolio position established in Q2 2014. On August 14, 2014, Icahn filed a 13D regulatory  showing he controlled 6.6% (~15M shares) of the business. Icahn holds 14.97M shares at an average cost-basis of around $31. The stock currently trades at $34.45.Netflix Inc. (NFLX): NFLX is a 1.51% of the US long portfolio position first purchased in Q3 2012 at prices between $53 and $85. The stake was increased by ~300% in Q4 2012 in the 50s price-range. Q4 2013 saw an about-turn as more than half the position was disposed of at prices between $304 and $342. The pattern continued in Q1 2014 as the position was reduced by another ~16% at prices between $328 and $455. Q2 2014 saw an additional ~21% reduction at prices between $314 and $449 and it was sold down by another ~20% last quarter at prices between $422 and $485. The stock currently trades at $475. Icahn harvested large long-term gains from the position. It was originally an activist stake but Icahn soon backed-off as the company started posting strong financial results.Apple Inc. (AAPL): The original stake in AAPL was established in mid-August 2013 at around $68 per share. It was increased by ~22% in Q4 2013. In Q1 2014, another 2.8M shares (pre-split share count:  ~60% stake increase) of AAPL stock was purchased at prices between $57 and $80. The stock currently trades at $128. Apple is now the second largest position in the portfolio at 18.26%. Icahn is very bullish on Apple and recently said the market should value it at a 20x PE - that translates to a stock price of $216.CVR Energy Inc. (CVI): CVI is a huge 8.64% of the US long portfolio position first purchased in Q4 2011. The bulk of the current position (71.2M shares: 80% of the whole business) was purchased through a $30 per share tender offer in H1 2012. The stock currently trades at $38.71: it has been a roller-coaster ride with the stock reaching as high as $72.32 in May 2013 and a low of $33.62 in Nov 2013.Two MLPs were carved out since the tender: CVR Refining (CVRR) the refining portion and CVR Partners (UAN) the nitrogen fertilizer unit. CVR Energy owns 71% of CVR Refining and 53% of CVR Partners.CVR Refining LP (CVRR): CVRR is a small 0.32% of the US long portfolio position established in Q1 2013 as a result of the spin-off (carve-out) of CVR Refining from CVR Energy. The position was increased by 50% in Q2 2013 at prices between $28 and $35. The stock currently trades well below that range at $18.56.Chesapeake Energy (CHK): CHK was first purchased in 2010 but was quickly sold. The bulk of the current stake was purchased in Q2 2012 at prices between $14.50 and $23. The stock currently trades at $20.40. Icahn successfully engaged in a proxy fight alongside Southeastern Asset Management that led to the eventual departure of the CEO. Icahn increased the position by another ~10% in Q3 2013. He currently owns around 10% of Chesapeake (66.5M shares).Note: The implied performance of this stake by the prices quoted above is negatively skewed because of the spinoff of Seventy Seven Energy (SSE), its Oilfield Services business unit. The terms of the deal called for CHK shareholders to receive one share of SSE for every 14 shares of CHK held.Federal Mogul (FDML): FDML is a very long-term stake first purchased in 2000. It went through an asbestos-claim related bankruptcy and emerged in 2007 with Icahn owning over 75% of the outstanding shares, as debt he owned got converted into equity. The position was increased marginally in the last two quarters of 2011 at prices between $13 and $23. In Q3 2013, his share count increased by ~58% (over 44M shares) - the new shares were purchased by exercising FDML’s rights offering (In May, Federal-Mogul launched a $500 million rights offering whereby shareholders could purchase an additional share for each one they currently held) at $9.78 per share - Icahn got 44M of the 51M shares purchased in the offering. The stock currently trades at around $15.46. Icahn now controls just over 80% of the business. It is Icahn’s fifth-largest position at 6.11% of the US long portfolio.Herbalife (HLF): HLF is a 2.01% of the US long portfolio stake first purchased in Q1 2013 in the high-30s price range. The position was marginally increased in Q2 2013 to almost 17M shares. The stock currently trades at $33.87. Bill Ackman is on the other side of this trade - short 20M shares since Q4 2012. Bill Ackman and Carl Icahn ended their feud in May 2014 and they have agreed to disagree on HLF. HLF is being investigated by the FTC (Civil Investigative Demand - CID).Hologic Incorporated (HOLX): HOLX is a 2.86% of the US long portfolio activist stake established in Q4 2013 at around $21 per share. Icahn currently has a 12.5% stake in the business and have nominated two representatives to the board. In early December 2013, a new CEO (Stephen MacMillan formerly of Stryker) was appointed stemming hopes that Icahn might immediately push for the sale of the business. But, later that month Stephen MacMillan confirmed that his focus will be on growing the business. The stock currently trades at $31.67.Nuance Communications (NUAN): NUAN is a 2.72% of the US long portfolio stake established in Q1 2013 at prices between $18 and $25. The position was increased by roughly two-thirds in Q3 2013 at prices between $18.31 and $20. The stock currently trades well below the low end of those ranges at $14.05. Icahn’s ownership is currently at over 17% of the company (~61M shares). Nuance adopted a poison-pill provision that allowed shareholders to purchase additional shares, if any one shareholder acquired more than 20% of the outstanding shares. On October 8, 2013 Nuance yielded somewhat by appointing two new Icahn recommended directors, thus avoiding a proxy fight. For investors attempting to follow Icahn, Nuance is a very good option to consider for further research.Talisman Energy (TLM): TLM was a new 0.30% of the US long portfolio position established in Q3 2013. In Q4 2013, the stake was increased by over ten-times to a 2.91% of the US long portfolio position at an average cost-basis of around $11.79. The stock currently trades at $7.70. TLM is being acquired by Repsol SA (REPYY) for $8 per share and shareholders approved the deal this week.Transocean Ltd. (RIG): RIG is a small ~1.23% of the US long portfolio stake first purchased in Q4 2012 at prices between $44.20 and $49.50. The position was increased by ~250% in Q1 2013 at prices between $44 and $60. The stock currently trades well below those ranges at around $17.41.American Railcar Inds. (ARII), Enzon Pharmaceuticals (ENZN), Mentor Graphics (MENT), & Voltari Corporation (VLTC): These are relatively small (less than 2% of the US long portfolio) positions that were held steady this quarter.  Although the stakes are small on a relative basis, the percentages owned of the businesses concerned are very significant. Icahn owns 14%, 55.60%, 13.7%, and 14.2% of VLTC, ARII, ENZN, and MENT respectively.Icahn also owns significant stakes in the following OTC stocks as per latest 10Q: 73.5% of Viskase Companies (VKSC) and 67.9% of Tropicana Entertainment (TPCA).The spreadsheet below highlights changes to Icahn’s US stock holdings in Q4 2014:"