"Tracking Carl Icahn’s Portfolio – Q3 2015 Update"
"Carl Icahn’s US long portfolio decreased from $31.20B to $27.88B this quarter.A new stake in Freeport-McMoran was established and the Cheniere Energy stake was substantially increased.The huge Apple position is now at 20.88% of the 13F portfolio.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 11/16/2015. Please visit our  to get an idea of his investment philosophy and our  highlighting the fund’s moves during Q2 2015.This quarter, Icahn’s US long portfolio decreased 10.66% from $31.20B to $27.88B. The number of holdings increased from 22 to 24. The portfolio is very concentrated with the largest five positions accounting for ~70% of the entire holdings: Icahn Enterprises (27.54%), Apple Inc. (20.88%), CVR Energy Inc. (10.48%), PayPal Holdings (5.15%), and Cheniere Energy (4.95%).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 9).Stake Disposals:Ebay Inc. (EBAY): EBAY was a large (top-three) 8.93% of the US long portfolio position as of last quarter. It was established in Q1 2014 at prices between $20 and $23. The position was increased by ~11% in Q2 2014 at prices between $19 and $22 and by another ~49% the following quarter at prices between $19.50 and $22.25. The elimination this quarter happened at prices between $24.08 and $28.75. The stock currently trades at $28.77.Note 1: EBAY spun-off its PayPal (PYPL) subsidiary in July and the prices quoted above are adjusted for that spin-off.Note 2: The 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. In April 2014, an agreement was reached that prevented an immediate proxy fight and in September 2014, eBay announced plans to spinoff PayPal into a separate publicly traded company.New Stakes:Freeport-McMoran Inc. (FCX): FCX is a medium-sized 3.48% of the portfolio stake established this quarter at prices between $7.92 and $18.62. The stock currently trades near the low end of that range at $8.42. Icahn controls ~8.6% of the business.PayPal Holdings (PYPL): PYPL is a fairly large (top five) 5.15% of the 13F portfolio position. It was established as a result of the spinoff of PayPal Holdings from eBay Inc. that closed in July. Icahn is holding on to the PayPal position but has sold the eBay stake. The stock has not budged since the spinoff and trades at $36.19.Stake Decreases:Hologic Incorporated (HOLX): HOLX is a 3.95% of the US long portfolio activist stake established in Q4 2013 at around $21 per share. This quarter saw a ~18% reduction at prices between $37.22 and $42.92. The stock currently trades at $39.85. HOLX has risen a stunning ~50% so far this year. Icahn controls ~10% of the business.Note: Icahn nominated two representatives to the board and in December 2013 a new CEO (Stephen MacMillan formerly of Stryker) was appointed. Since then, most of the upper management was replaced as well.Stake Increases:Cheniere Energy (LNG): The very small LNG stake established last quarter was increased to a large (top five) 4.95% of the portfolio position this quarter at prices between $47.47 and $70.65. The stock currently trades near the low end of that range at $50.15. For investors attempting to follow Icahn, LNG is a good option to consider for further research.Note 1: A November 12, 2015 13D/A regulatory filing shows Icahn beneficially owning 29.87M shares (~12.65% of the business).Note 2: LNG has strong recent super-investor interest: Seth Klarman (Baupost Group), John Griffin (Blue Ridge Capital), and Stephen Mandel (Lone Pine Capital) have established large stakes.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. Last three quarters have also seen increases with the current share count at ~115M shares. 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 $70.47.Kept Steady:Apple Inc. (AAPL): The stake in AAPL was established in mid-August 2013 at around $68 per share. The original position was increased by ~22% in Q4 2013 and the following quarter saw another ~60% increase at prices between $57 and $80. The stock currently trades at $119. Apple is the second largest position in the portfolio at 20.88%. Icahn is very bullish on Apple.CVR Energy Inc. (CVI): CVI is a huge (top three) 10.48% 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 $44.71.Note: 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 owns 71% of CVR Refining and 53% of CVR Partners. Earlier in August, CVR Partners agreed to merge with Rentech Nitrogen (RNF).CVR Refining LP (CVRR): CVRR is a small 0.41% 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 $20.66.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. Q1 2015 saw a ~10% increase at prices between $13.50 and $21.26. The stock currently trades well below those ranges at $5.40. The ownership stake in Chesapeake is at ~11% (~73M shares).Note 1: Icahn successfully engaged in a proxy fight alongside Southeastern Asset Management that led to the eventual departure of the CEO.Note 2: 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 3.40% 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. In Q3 2013, FDML had a rights offering and Icahn got 44M of the 51M shares in the offering at $9.78 per share. The stock currently trades at $7.45. Q1 2015 saw a ~14% increase at prices between $12.61 and $16.09. Icahn controls ~82% of the business.Gannett Inc. (GCI) previously Gannett SpinCo: GCI is a very small 0.40% of the US long portfolio stake established last quarter as a result of  Gannett’s Tegna Inc. spin-off and rename transaction that closed in June. Icahn controls 6.51% of the business.Note: The publishing business (owns USA Today and 90+ local daily publications) was spun-off and named Gannett Inc. while the parent company was renamed Tegna Inc. The terms called for shareholders of the parent to receive shares of the spinoff in the ratio 1:2.Herbalife (HLF): HLF is a 3.32% 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 $56.49.Note: Herbalife is being investigated by the FTC (Civil Investigative Demand - CID).Hertz Global Holdings (HTZ): HTZ is a 3.12% of the US long portfolio position. It was established in Q3 2014 at a cost-basis of $28.35. In Q4 2014, the stake was increased by just over one-third at prices between $19.38 and $25.47. The stock currently trades at $16.75. Icahn owns 11.34% of the business. For investors attempting to follow Icahn, HTZ is a very good option to consider for further research.Manitowoc Company (MTW): MTW is a small 0.57% of the portfolio activist stake. It was established in Q4 2014 at prices between $16.60 and $23.05 and increased by ~136% in Q1 2015 at prices between $17.69 and $22.83. The stock currently trades at $15.89. For investors attempting to follow Icahn, MTW is a good option to consider for further research.Note: Carl Icahn reached an agreement with Manitowoc in February whereby he got a board seat. Also, Manitowoc’s Cranes and Food Services businesses will be separated in a spinoff.Navistar International (NAV): NAV is a relatively small 0.74% 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 the following quarter saw a further ~14% increase at prices between $29.10 and $37.76. The stock currently trades well below the low-end of those ranges at $13.30 having dropped ~60% so far this year. Icahn controls ~20% of the business.Nuance Communications (NUAN): NUAN is a 3.57% 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 at $20.20. Icahn’s ownership is currently at over 17% of the company (~61M shares). For investors attempting to follow Icahn, Nuance is a good option to consider for further research.Note: On October 8, 2013 Nuance appointed two Icahn recommended directors and avoided a proxy fight.Seventy Seven Energy (SSE): SSE is a minutely small 0.02% of the US long portfolio position established in Q3 2014 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 stake is consistent with that ratio. The stock is currently at $1.18. Icahn controls 9.34% of the business and the stock is down a whopping ~95% since the spin-off.Tegna Inc. (TGNA) previously Gannett: Icahn holds 14.97M shares (~6.6% of the business) of TGNA at a cost-basis of around $25. The original stake is from Q2 2014 with the bulk purchased the following quarter. The stock currently trades at $27.70 and the stake is at 1.72% of the US long portfolio.Note: The cost-basis quoted above is adjusted for the publishing business spinoff that closed in June. Tegna’s business has broadcasting and digital assets: they own 45+ television stations and digital businesses such as Cars.com, CareerBuilder, PointRoll, and Shoplocal.Transocean Ltd. (RIG): RIG is a small ~1% 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 $14.19.Voltari Corporation (VLTC): VLTC position was increased by ~600% in Q1 2015 to a 52.3% ownership stake. As a percentage of the portfolio, the position is still minutely small. The stake increase came about from Voltari’s rights offering in February: 95% of the issued shares were acquired by Icahn by making use of the oversubscription privilege at a cost-basis of $1.36. The stock currently trades at $3.89.American Railcar Industries (ARII), Enzon Pharmaceuticals (ENZN), and Mentor Graphics (MENT): 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 59.82% (recent increase due to repurchase), 13.7%, and 14.2% of ARII, ENZN, and MENT respectively.Note: Icahn also owns significant stakes in the following OTC stocks as per latest 10Q: ~73% of Viskase Companies (VKSC) and ~68% of Tropicana Entertainment (TPCA). The TPCA stake is set to increase 76.91% due to share repurchase.The spreadsheet below highlights changes to Icahn’s US stock holdings in Q3 2015:13D/13G/A Updates: 8/19/2015 -13D - RNF - Rentech Nitrogen - 23.25M shares - 59.7% - merger with CVR Partners LP related filing, 8/17/2015 - 13D/A -  TPCA - Tropicana Entertainment - 17.86M shares - 67.89% - On August 6th, they announced a $50M repurchase program and the filing was to indicate that the ownership stake would increase in the future, 8/14/2015 - 13D/A -ARII - American Railcar - 11.87M shares - 55.60% - On July 29, 2015, ARII announced a $250M share repurchase program and the filing is to indicate that the ownership stake would increase in the future.13D/13G/A Updates: 8/7/2015 - 13D/A - VLTC - some note issue, 8/6/2015 - 13D - LNG - event date July 27, 2015 - 19.35M shares - 8.2% of business, 8/4/2015 - HOLX - 13D/A - 5.63M shares - 2% of business, 7/9/2015 - 13D - GCI - 7.48M shares - 6.51% of business, 7/9/2015 - 13D/A - TGNA - Tegna Inc. - spinoff from GCI and rename transaction - spunoff the publishing business as GCI and the remaining was renamed TGNA - related filing.13D/13G/A Updates: 5/8/2015 - TLM - 0, 3/31/2015 - VLTC - 4.74M - 52.3%, 3/27/2015 - FDML - 139M - 81.99%, 3/23/2015 - CHK - 73M shares - 10.98%, PREVIOUS: MTW - 10.58M shares compared to 4.5M in 13F, 7.81% - separation of cranes and food services businesses settlement agreement. GCI - two directors to the board, HTZ - 51.92M shares - 11.34% - same as 13F, Navistar - 16.27M shares - 19.99% - same as 13F."