"Tracking Carl Icahn’s Portfolio – Q4 2017 Update"
"Carl Icahn’s 13F portfolio value increased from $21.25B to $22.66B this quarter.Sandridge was added while reducing PayPal Holdings.Icahn Enterprises, CVR Energy, and American International Group 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 02/14/2018. Please visit our  to get an idea of his investment philosophy and our  for the fund’s moves during Q3 2017.This quarter, Icahn’s 13F portfolio value increased ~7% from $21.25B to $22.66B. The number of holdings increased from 16 to 17. The portfolio is very concentrated with the largest five positions accounting for ~75% of the entire holdings: Icahn Enterprises, CVR Energy, American International Group, Cheniere Energy, and Herbalife.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:Sandridge Energy (SD): SD is a 0.45% of the portfolio activist stake established this quarter at prices between $16 and $21 and the stock is now below that range at $15.45.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. Earlier this year, he sent a letter seeking replacement of two directors and removal of the poison pill.Stake Decreases:PayPal Holdings (PYPL): PYPL is a 2.60% of the portfolio position. It was established as a result of the spinoff of PayPal Holdings from eBay Inc. (EBAY) that closed in July 2015. Icahn sold the EBAY stake soon after but held on to the PYPL position. 2016 saw selling in PYPL as well: Q2 & Q3 2016 had seen a combined ~30% reduction at prices between $34 and $40.50. There was a two-thirds reduction in Q2 2017 at prices between $42.50 and $54.50 and that was followed with a ~20% selling this quarter at prices between $64 and $79. The stock currently trades at $78.37.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 $21.94 compared to Icahn’s cost-basis of ~$15. There was a ~5% trimming this quarter.Note: Icahn controls ~7.2% of the business.Manitowoc Company (MTW): MTW is a very small 0.46% 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 $33.59. There was a marginal trimming this quarter.Note: The prices quoted above are adjusted for the Welbilt spin-off in March 2016 and the 1-for-4 stock-split last November.Stake Increases:Icahn Enterprises (IEP): IEP is a very long-term position that 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 currently. Q1 2017 had seen a ~10M share increase at a cost-basis of $53.71 and that was followed with a ~9M share increase in Q2 2017 at a cost-basis of ~$49. Another ~4M shares were acquired last quarter at ~$53 and that was followed with a ~4.4M share increase this quarter at ~$52. The stock currently trades at $56.95.Note: Icahn controls 91% of the business.Kept Steady:CVR Energy Inc. (CVI): CVI is a large (top three) ~12% of the US long portfolio position first purchased in Q4 2011. The bulk of the current position (71.2M shares: 82% of the whole business) was purchased through a $30 per share tender offer in H1 2012. The stock currently trades at $33.44.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 owns 71% of CVR Refining and 53% of CVR Partners. In August 2015, CVR Partners agreed to merge with Rentech Nitrogen.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.American International Group (AIG): AIG was a minutely small 0.28% portfolio stake as of Q3 2015. It was increased to a top-three position the following quarter at prices between $57 and $64. H1 2016 also saw a minor increase. The stock currently trades at $59.47. The stake is now at 11.30% of the portfolio. It is an activist position and Icahn’s ownership interest is at ~4%. There was a ~6% selling in Q2 2017. For investors attempting to follow Icahn, AIG is a good option to consider for further research.Cheniere Energy (LNG): LNG is a large (top five) ~8% 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. The stock currently trades at $57.64.Note: Icahn’s ownership stake in the business is ~14%.Herbalife (HLF): HLF is a large (top five) ~7% of the US long portfolio stake first purchased in Q1 2013 in the high-30s price range. Q3 2016 saw a ~15% increase at prices between $58 and $68 and that was followed with a similar increase the following quarter at prices between $48 and $64. The stock currently trades at $83.72. The total outlay so far is ~$950M with an overall cost-basis of ~$42.Note: Icahn controls ~25% of the business.Freeport-McMoran Inc. (FCX): FCX is a fairly large ~6.5% 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. Last quarter saw another ~16% selling at prices between $11.89 and $15.55. The stock currently trades at $18.73.Note: Regulatory filings since the quarter ended show them owning 60M shares (4.14% of the business). This is compared to ~77.2M shares in the 13F. The reduction happened at ~$18 per share.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 $30.55. For investors attempting to follow Icahn, XRX is a good option to consider for further research.Note 1: Icahn controls ~10% 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.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.Navistar International (NAV): NAV is a ~3% of the US long 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 $38.52. There was a very minor ~3% increase in Q1 2017 at ~$25.70.Note: Icahn controls ~17% of the business.Hertz Global Holdings (HTZ): HTZ is a ~3% of the US long 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 $19.24. For investors attempting to follow Icahn, HTZ is a good option to consider for further research.Note 1: Icahn controls ~35% of the business. The total outlay so far is ~$1.85B and the market value is ~$563M.Note 2: The prices quoted above are adjusted for the Herc Holdings spinoff in Q2 2016.American Railcar Industries (ARII): ARII is a long-term ~2% of the portfolio position held steady this quarter.  Icahn owns ~62% of ARII.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 $16.02.Herc Holdings (HRI): HRI is a very small 1.24% 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 last quarter at ~$38.50. The stock started trading at ~$33 and currently goes for $62.05.Note: Icahn controls 15.9% of the business.CVR Refining LP (CVRR): CVRR is a minutely small 0.42% 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 $14.95.Note: Icahn also owns significant stakes in the following OTC stocks as per latest regulatory filings: ~68% of Cadus Corporation (KDUS), ~15% of Enzon Pharmaceuticals (ENZN), ~75% of Viskase Companies (VKSC), ~84% of Tropicana Entertainment (TPCA), and ~53% of Voltari Corp (VLTC). He is also known to have a position in Fannie/Freddie (FNMA) (FMCC).The spreadsheet below highlights changes to Icahn’s US stock holdings in Q4 2017:Regulatory Filings thru 11/17/2017: 13D/A – 11/15 – FCX – 77.2M shares – 5.33% of business. 13D/A – 10/11 – HLF – 22.9M shares – 26.22% of business. 13D/A – 9/20 – KDUS – sent letter to board with a merger offer. 13D/A, Form 4 – 9/19 – IEP – 153.5M shares – 90.8% of business – 4.2M shares acquired @ $53.19.Note for Q4 2017 onwards: Mention the BV from their website & the indicative net-asset-value from their earnings conference calls. I replied with this info for a reader’s comment: “Per their investor website (http://bit.ly/2B3lvHO), BV is 19.04. The historical value for IEP P/BV (http://bit.ly/1SvzY2W) is much lower although in recent years it has stayed high. I believe the 42 number you used is the Indicative Net Asset Value per share - per the Q3 earnings webcast presentation (http://bit.ly/2B1XYY5), that figure would be $41.84 (7.08B/169.1M) which is close to what you used.”"