"Tracking Carl Icahn’s Portfolio – Q3 2018 Update"
"Carl Icahn’s 13F portfolio value increased from $24.14B to $25.22B this quarter.Dell Technologies, Newell Brands, and Energen Corporation were increased significantly during the quarter.Icahn Enterprises, CVR Energy, and Herbalife 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 11/14/2018. Please visit our  to get an idea of his investment philosophy and our  for the fund’s moves during Q2 2018.This quarter, Icahn’s 13F portfolio value increased ~5% from $24.14B to $25.22B. The number of holdings decreased from 21 to 20. The portfolio is very concentrated with the largest five positions accounting for ~77% of the entire holdings: Icahn Enterprises, CVR Energy, Herbalife, Cheniere Energy, and Dell Technologies.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:None.Stake Disposals:Cigna Corp. (CI): CI was a minutely small 0.35% of the portfolio position established last quarter at prices between $165 and $181 and disposed this quarter at prices between $170 and $210. The stock is now at ~$208.Stake Decreases:Cheniere Energy (LNG): LNG is a large (top five) 6.44% 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 last quarter: ~28% reduction at ~$65. The stock currently trades at $58.16. There was a marginal trimming this quarter.Note: Icahn’s ownership stake in the business is 9.8%.VMWare Inc. (VMW): VMW was a 1.38% of the portfolio position purchased at prices between $119 and $151 and disposed this quarter at prices between $145 and $163. The stock is now at ~$148.Note: Last quarter, Icahn started building positions in VMW and the tracking stock DVMT. Since then, the VMW stake was sold out but a very big position in DVMT was built. Please see details under the DVMT section below.Stake Increases:Icahn Enterprises (IEP): IEP position has seen consistent buying over the years. The position size saw increases from ~98M shares to ~102M shares in 2013, to ~109M shares in 2014, to ~117M shares in 2015, to ~130M shares in 2016, and to ~158M shares as of Q4 2017. Last two quarters have also seen a ~8% further increase. The stock currently trades at $65.66.Note: IEP Book Value per share is $30.07 and Net Asset Value per share is $46.20 as of Q3 2018.Dell Technologies (DVMT): The 3.39% DVMT stake was established last quarter at prices between $70 and $90 and increased by ~270% this quarter at prices between $92 and $99. It is now at ~$103.Note 1:  Regulatory filings since the quarter ended show them owning 18.53M shares (9.3% of business). This is compared to 8.8M shares in the 13F report. Overall, their cost-basis is ~$92.30.Note 2: Icahn built the position after Dell revealed plans to buy the tracking stock back at a discount. Icahn filed a lawsuit and threatened a proxy fight. Dell came back with a somewhat better offer of $120 per share with a $14B cap. In response, Icahn dropped the lawsuit and walked away from the proxy fight saying it would be unwinnable as they have 17% favoring the current offer.Newell Brands (NWL): NWL is a 3.12% of the portfolio position established in Q1 2018 at a cost-basis of $27.40 per share. The stock is now below that at $21.60. Last quarter saw a ~10% stake increase at prices between $23 and $28 and that was followed with a ~15% increase this quarter at prices between $20.50 and $28. For investors attempting to follow Icahn, NWL is a good option to consider for further research.Note: In April, rival activist Starboard Value came to an  with Carl Icahn whereby they now together control Newell’s board.Energen Corp. (EGN): EGN is a 2.62% of the portfolio stake purchased last quarter at prices between the low-60s and the low-70s. This quarter saw a ~48% stake increase at prices between $71 and $87. The stock is now at $70.01. Icahn controls ~8% of the business.Note: Regulatory filings since the quarter ended show them owning 9.67M shares (9.9% of business). This is compared to 7.67M shares in the 13F report.Manitowoc Company (MTW): MTW is a very small 0.16% of the portfolio activist stake. It was established in Q4 2014 at prices between $14 and $22 and increased by ~136% in Q1 2015 at prices between $16 and $22. The stock currently trades at $17.87. There was a ~36% selling in Q1 2018 at prices between $32.50 and $34.50. This quarter saw a marginal increase.Note: The prices quoted above are adjusted for the Welbilt spin-off in March 2016 and the 1-for-4 stock-split last November.Kept Steady:CVR Energy Inc. (CVI): CVI is a large (top tree) ~11% 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 $37.46.Note 1: Two MLPs were carved out since the 2012 tender: CVR Refining (CVRR) the refining portion and CVR Partners (UAN) the nitrogen fertilizer unit. CVR Energy has 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 three) ~8% 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. Last quarter saw the position sold down by ~25% at $52.50 per share. The stock currently trades at $54.54.Note 1: Icahn controls ~22% of the business. In March 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 the 2-for-1 stock-split in April.Freeport-McMoran Inc. (FCX): FCX is a 2.77% 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 $10.88.Navistar International (NAV): NAV is a 2.55% 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 $28.60. There was a very minor ~3% increase in Q1 2017 at ~$25.70.Note: Icahn controls ~17% of the business.Xerox Corporation (XRX): XRX is a 2.51% of the portfolio position established in Q4 2015 at prices between $24 and $32. The stock is now at $25.29. There was a ~5% trimming in Q1 2018.Note 1: Icahn controls 9.21% of the business. In December, 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.American Railcar Industries (ARII): ARII is a long-term ~2% of the portfolio position held steady this quarter.  Icahn owns ~62% of ARII.Note: Last month, an ITE Rail Fund subsidiary agreed to buy ARII for $70 per share.Hertz Global Holdings (HTZ): HTZ is a ~2% 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 $17.37.Note 1: Icahn controls ~35% of the business. The total outlay so far is ~$1.85B and the market value is ~$475M.Note 2: The prices quoted above are adjusted for the Herc Holdings spinoff in Q2 2016.Conduent Inc. (CNDT): The stake came about as a result of Conduent’s spinoff from Xerox that closed in January last year. Terms called for Xerox shareholders to receive Conduent shares in the ratio 1:5. The current CNDT stake is consistent with this ratio: Icahn owned 99M shares of Xerox for which he received 19.8M shares of Conduent. CNDT started trading at ~$15 and currently goes for $13.09.Note: Regulatory filings since the quarter ended show them owning 22.3M shares (10.56% of business). This is compared to 19.8M shares in the 13F report.AmTrust Financial (AFSI): AFSI is a 1.06% of the portfolio stake established at a cost-basis of ~$13 per share. AFSI is going private at $14.75 per share cash and shareholders have approved the deal. Icahn controls 9.38% of the business.Note: The initial offer by the controlling family (Zysking/Karfunkel) was at $13.50 per share and Icahn sued successfully to up the price.Herc Holdings (HRI): HRI is a very small ~1% 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 $34.27.Note: Icahn controls ~16% of the business.Welbilt Inc. (WBT) previously Manitowoc Food Service: The very small ~1% 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 $13.05 compared to Icahn’s cost-basis of ~$15. There was a ~5% trimming in Q4 2017.Note: Icahn controls ~7% of the business.CVR Refining LP (CVRR): CVRR is a minutely small 0.53% of the 13F 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 at $15.31.Sandridge Energy (SD): SD is a 0.21% of the portfolio activist stake established in Q4 2017 at prices between $16 and $21 and the stock is now below that range at $9.51.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, Icahn gained control of Sandridge’s board by winning a proxy battle.Note 1: Icahn also owns significant stakes in the following OTC stocks as per latest regulatory filings: ~15% of Enzon Pharmaceuticals (ENZN), ~79% of Viskase Companies (VKSC), and ~53% of Voltari Corp (VLTC). He is also known to have a position in Fannie/Freddie (FNMA) (FMCC).Note 2: In April, Icahn entered into an agreement to sell majority owned Tropicana Entertainment’s (TPCA) real-estate assets to Gaming & Leisure Properties and (GLPI) and gaming & hotel operations to Eldorado Resorts (ERI). The transaction closed last month.Note 3: Regulatory filings from early October show them owning ~5.65M shares (9.9% of business) of Tenneco (TEN). This is partial consideration for the acquisition of Federal-Mogul: Tenneco issued ~5.65M Class A shares and ~23.79M Class B (non-voting) shares.The spreadsheet below highlights changes to Icahn’s 13F stock holdings in Q3 2018:6/7/2018 – Bloomberg -  – AGN - Icahn’s new investment in Allergan comes as the company’s plan to sell the two divisions has come under fire from billionaire investor David Tepper. In a sternly worded letter to Allergan’s board Tuesday, Tepper called the decision to sell the units after a strategic review a “half-hearted attempt to restore strategic momentum” and is asking for a board shakeup at the drugmaker. NOT IN 13F…Note for future: NFLX & AAPL trades come up in the comment stream often. The  has the details on AAPL and  that of Netflix – he generated ~$2B each profits from these two trades. On March 1, 2018, Icahn  that his profit on HLF was ~$1B. The stock was trading at ~$46 at the time.Regulatory filings thru 9/2/2018: 13D/A – 8/29 – NWL – 38.3M shares – 8.1% of business – increase at ~$21.50, Form 4 – 8/15 – EGN - ~1M shares acquired at ~$74 per share – 7.67M shares total, Form 4 – 8/10 - ~650K shares purchased at ~$71.50, Form 4 – 8/2 - ~300K shares acquired at ~$74, Form 4 – 6/20 to 7/30 filings –purchases in the low-60s and low-70s, Form 3 – 6/18, 13D/A – 8/3 – HLF – 35.2M shares – 22.41% of business, Form 4, 13D/A – 5/31 – 10.5M shares disposed at $52.5, 35.23M shares – 22.41%, 13D/A 5/25 – tender related, Form 4 – 8/1 – CVRR – acquired 21.63M shares thru exchange offer for CVR Energy shares at a valuation of $24.26 per common unit (0.6335 shares of CVI for one CVRR) - ~125M shares total, 13D/a – 8/1 – 84.5% of business, 13D/A 5/29 – tender related, 13D/A – 8/1 – CVI – 71.198M shares – 70.8% of business, 13d/a 5/29 – tender related, Form 4 – 6/29 & 13d/a 6/28 – LNG – 9M shares disposed at $64.93 – 23.68M shares remain (9.5% of business), Form 4 & 13D/A – 6/28 – KDUS – 8.46M shares acquired at $1.61, 26.29M shares total – StarFire acquisition of Cadus related, 13D/a – 6/25, 6/20, 6/18, 6/15, 6/14, 6/11, 6/7, 6/6, 6/4, 5/31, 5/25, 5/23 – Sandridge – proxy, misc confidentiality agreement related, 13D/A – 6/21 – IEP – 166M shares – 91.4% of business, Form 4 – 6/21 – 3.95M share acquisition at $71.95, 6/10 – 13D/A – AFSI – 18.42M shares – 9.38% of business, 6/4 13D/A – going private discussion related, 6/1 13D/A – appraisal rights related,"