"Tracking Carl Icahn’s Portfolio – Q1 2017 Update"
"Carl Icahn’s US long portfolio value decreased from $22.37B to $19.94B this quarter.Small stakes in Nuance Communications and Allergan plc were dropped during the quarter.Icahn Enterprises, American International Group, and Cheniere Energy 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 US stock portfolio on a quarterly basis. It is based on Icahn’s regulatory  filed on 05/15/2017. Please visit our  to get an idea of his investment philosophy and our  for the fund’s moves during Q4 2016.This quarter, Icahn’s 13F portfolio value decreased ~11% from $22.37B to $19.94B. The decrease was mainly due to the absence of Federal Mogul in the filing - Ichan acquired the business and it became a wholly owned subsidiary. The number of holdings decreased from 18 to 16. The portfolio is very concentrated with the largest five positions accounting for ~72% of the entire holdings: Icahn Enterprises, American International Group, Cheniere Energy, CVR Energy, and PayPal Holdings.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).Stake Disposals:Allergan plc (AGN): AGN was a very small ~0.40% of the portfolio stake as of last quarter. It was established in Q2 2016 at prices between $202 and $278 and reduced by ~88% the following quarter at prices between $230 and $260. The disposal this quarter was at prices between $211 and $250. The stock is now at $219.Federal Mogul (FDML): Last February, Icahn offered to acquire the company for $7 per share. The offer was raised to $8 per share in June, to $9.25 per share in September, and the deal was sealed at $10 per share in January this year. Federal Mogul is now a wholly owned subsidiary.Note: Icahn first purchased FDML shares 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. Q1 2015 saw a ~14% increase at prices between $12.50 and $16.Nuance Communications (NUAN): NUAN was a 1.22% 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 and $20. Q1 2016 saw an about turn: ~50% stake reduction at ~$19 per share in a buyback transaction with Nuance. The following quarter saw another ~30% selling at prices between $14.50 and $19.50. The disposal this quarter was at prices between $15 and $17.50. The stock is now at $18.53.New Stakes:Conduent Inc. (CNDT): The stake came about as a result of Conduent’s spinoff from Xerox that closed in January this 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 $16.70.Stake Decreases:PayPal Holdings (PYPL): PYPL is a fairly large (top five) 6.81% of the 13F 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. Last year saw selling in PYPL as well: Q2 & Q3 2016 had seen a combined ~30% reduction at prices between $34 and $40.50 and that was followed with minor trimming in the last two quarters. The stock currently trades at $49.11.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 ~140M shares currently. This quarter saw a ~10M share increase at a cost-basis of $53.71. The stock currently trades at $49.32.Note: Icahn controls ~90% of the business. Regulatory filings after the quarter ended show them owning ~144.8M shares of IEP compared to ~140.5M shares in the 13F: around 4.3M shares were acquired at $49.44.Herbalife (HLF): HLF is a 6.67% 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 last quarter at prices between $48 and $64. The stock currently trades at $70.82. This quarter saw a marginal ~2% increase at an average cost-basis of $51.35. The total outlay so far is ~$950M with an overall cost-basis of ~$42.Note: Icahn controls ~25% of the business.Navistar International (NAV): NAV is a ~2% 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 $25.22. There was a very minor ~3% increase this quarter at ~$25.70.Note: Icahn controls ~17% of the business.Kept Steady: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 $61.39. The stake is now at 14.29% of the portfolio. It is an activist position and Icahn’s ownership interest is at ~4%. For investors attempting to follow Icahn, AIG is a good option to consider for further research.Cheniere Energy (LNG): LNG is a large (top three) 7.75% 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 $48.71.Note: Icahn’s ownership stake in the business is ~14%.CVR Energy Inc. (CVI): CVI is a fairly large ~7% 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 $21.10.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 (RNF).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 is $15.67.Freeport-McMoran Inc. (FCX): FCX is a fairly large ~6% of the portfolio stake established in Q3 2015 at prices between $7.50 and $18.50. Last quarter saw a ~12% trimming at prices between $9.50 and $16.50. The stock currently trades at $11.29.Note: Icahn controls ~6.3% of the business.Xerox Corporation (XRX): XRX is a 3.65% of the portfolio position established in Q4 2015 at prices between $6 and $8. The stock is now at $6.99. For investors attempting to follow Icahn, XRX is a good option to consider for further research.Note 1: Icahn controls ~10% of the business.Note 2: XRX is an activist stake and Icahn got three board seats last year. Xerox spun-off Conduent and that transaction closed in January. The prices quoted above are adjusted for this.Hertz Global Holdings (HTZ): HTZ is a 2.57% 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. Last quarter saw another ~125% increase at prices between $21 and $40. The stock currently trades at $9.33. 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 ~$273M.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 2.45% of the portfolio position held steady this quarter.  Icahn owns ~62% of ARII.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. Following the transaction, there was a marginal increase in the position. The stock started trading at ~$33 and currently goes for $35.01.Note: Icahn controls ~15% of HRI.Welbilt Inc. (WBT) previously Manitowoc Food Service (MFS): The very small 0.91% 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 with WBT at $13.41. It currently trades at $19.06 compared to Icahn’s cost-basis of ~$15.Note: Icahn controls ~8% of the business.Manitowoc Company (MTW): MTW is a very small 0.30% of the portfolio activist stake. It was established in Q4 2014 at prices between $3.50 and $5.50 and increased by ~136% in Q1 2015 at prices between $4 and $5.50. The stock currently trades at $5.40.Note: The prices quoted above are adjusted for the Welbilt spin-off.CVR Refining LP (CVRR): CVRR is a minutely small 0.27% 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 at $10.10.Note: Icahn also owns significant stakes in the following OTC stocks as per latest 10Q and regulatory filings: ~15% of Enzon Pharmaceuticals (ENZN), ~75% of Viskase Companies (VKSC) and ~73% of Tropicana Entertainment (TPCA). He is also known to have a position in Fannie/Freddie (FNMA) (FMCC). In January, Icahn reached an agreement with ENZN not to increase ownership.The spreadsheet below highlights changes to Icahn’s US stock holdings in Q1 2017:Regulatory Filings thru 2/21/2017: 13GA - NUAN - 1/25/2017 - 12.9M shares - 4.4%. 13E-3 - FDML - 1/23/2017 - Merger transaction closed following tender at $10 - around 30.5M out of the 169M outstanding that they did not hold was acquired. 13D - CNDT - 1/9/2017 - 19.8M shares - 9.8%. 13D/A - IEP - 12/21/2016 - ~130M shares - 89.89%. 13D/A - ENZN - 11/28/2016 - 6.6M shares - 690K acquired at $0.405 - they also entered into agreement not to acquire additional shares. 13D/A - FCX - 11/23/2016 - 104M shares - 7.2%.1/26/2017 - NUAN - Most of the reduction in Q1 2016 was a $500M buyback by NUAN at $19 per share. MIGHT INCLUDE THIS FROM Q4 2016 Update onwards.1/10/2017 - CNDT - Conduent spinoff from Xerox completed on 1/3/2017 (one share for every five shares of Xerox held). Today, Icahn disclosed a ~10% stake (19.8M shares, 9.77% of business) in a 13D filing - he owned close to 100M shares of Xerox for which he received these shares following the spinoff.1/3/2017 - FDML offer raised to $10 per share:"