"Tracking Carl Icahn’s Portfolio – Q1 2019 Update"
"Carl Icahn’s 13F portfolio value increased from $20.43B to $24.10B this quarter.He added Caesars Entertainment while reducing Diamondback Energy and Hertz Global Holdings.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 05/15/2019. Please visit our  to get an idea of his investment philosophy and our  for the fund’s moves during Q4 2018.This quarter, Icahn’s 13F portfolio value increased ~18% from $20.43B to $24.10B. The number of holdings decreased from 18 to 16. The portfolio is very concentrated with the largest five positions accounting for ~83% of the entire holdings: Icahn Enterprises, CVR Energy, Herbalife, Cheniere Energy, and Caesars Entertainment.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:Caesar’s Entertainment (CZR): The position was disclosed in a regulatory filing in March which showed them owning 66.05M shares of Caesars Entertainment (~10% of the business). This included ~5.8M shares in convertible bonds. Total outlay was $646M for a cost-basis of $9.78 per share. The position was since increased to ~120M shares of beneficial ownership (17.74% of business, majority thru equity swaps and convertible bonds). The stock is now at $9.06. Icahn is pushing for a sale of the company. Anthony Rodio who previously ran Icahn’s Tropicana Entertainment was appointed CEO in a deal with the company.Stake Disposals:CVR Refining LP (CVRR): CVRR was a minutely small 0.29% 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 The issue was withdrawn in January as the shares were consummated at $10.50 per share.Dell Technologies (DELL): The 3.06% of the portfolio DELL stake came about last quarter as a result of the tracking stock buyback. Icahn held 18.53M shares of DVMT for which they received partial consideration in the ratio 1.3665:1. The position was disposed this quarter at prices between $42.50 and $60.50. The stock currently trades at $65.70.Manitowoc Company (MTW): MTW was a very small 0.12% of the portfolio 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 $15.06. There was a ~36% selling in Q1 2018 at prices between $32.50 and $34.50 and the disposal this quarter was at prices between $14.50 and $19.25.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 Decreases:Cheniere Energy (LNG): LNG is a large (top five) 6.23% 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 in Q2 2018: ~28% reduction at ~$65. The stock currently trades at $64.89. There was a ~5% trimming this quarter.Note: Icahn’s ownership stake in the business is 8.41%.Freeport-McMoran Inc. (FCX): FCX is a 2.37% 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 $9.95. This quarter also saw a ~12% trimming.Diamondback Energy (FANG): The 2.19% FANG stake came about as a result of the merger with Energen. Icahn held 9.67M shares of Energen for which they received 6.23M shares of Diamondback Energy in the ratio 0.6442:1. Overall, Icahn’s cost-basis on Diamondback Energy was ~$107 per share. This quarter saw a ~17% selling at prices between $93 and $107. The stock is now at $104.Hertz Global Holdings (HTZ): HTZ is a 1.75% 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 $15.66. There was a ~17% selling this quarter at ~$19.45. Icahn realized losses.Note: Icahn controls 28.91% of the business. The prices quoted above are adjusted for the Herc Holdings spinoff in Q2 2016.Stake Increases:None.Kept Steady:Icahn Enterprises (IEP): IEP position has seen consistent buying over the years. The position size increased from ~98M shares to ~102M shares in 2013, to ~109M shares in 2014, to ~117M shares in 2015, to ~130M shares in 2016, to ~158M shares in 2017 and 175.4M as of EOY 2018. The stock currently trades at ~$70.Note: IEP Book Value per share was ~$30.50 as of March. Regulatory filings since the quarter ended show the 13F stake at ~180M shares. This is compared to 175.4M shares in the 13F report.CVR Energy Inc. (CVI): CVI is a large (top tree) ~12% 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 $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 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. Q2 2018 saw the position sold down by ~25% at $52.50 per share. The stock currently trades at $43.22.Note 1: Icahn controls ~22% of the business. In March 2018, 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 a 2-for-1 stock-split done in April 2018.Xerox Corporation (XRX): XRX is a 3.11% of the portfolio position established in Q4 2015 at prices between $24 and $32. The stock is now at $31.88. There was a ~5% trimming in Q1 2018.Note 1: Icahn controls 9.21% of the business. In December 2017, 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.Newell Brands (NWL): NWL is a 2.62% of the portfolio position established in Q1 2018 at a cost-basis of $27.40 per share. The stock is now well below that at $15.15. Q2 2018 saw a ~10% stake increase at prices between $23 and $28 and that was followed with a ~15% increase next quarter at prices between $20.50 and $28. Last quarter also saw a ~6% stake increase. Overall, their cost-basis is $26.40.Note: In April last year, rival activist Starboard Value came to an  with Carl Icahn whereby they now together control Newell’s board.Navistar International (NAV): NAV is a 2.24% 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 $30.66.Note: Icahn controls ~17% of the business.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 $9.34.Note: Regulatory filings since the quarter ended show them owning 31.6M shares (~15% of business). This is compared to 19.8M shares in the 13F report. The shares were acquired at an average cost in the high-8s. Icahn is engaged in a board battle.Herc Holdings (HRI): HRI is a very small 0.73% 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 $37.09.Note: Icahn controls ~16% of the business.Welbilt Inc. (WBT) previously Manitowoc Food Service: The very small 0.69% 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 $15.93 compared to Icahn’s overall cost-basis of $16.52. There was a ~5% trimming in Q4 2017.Note: Icahn controls 8.52% of the business.Tenneco Inc. (TEN): Tenneco is a small 0.52% portfolio position. It came as partial consideration for the acquisition of Federal-Mogul: Tenneco issued ~5.65M Class A shares and ~23.79M Class B (non-voting) shares. The stock is now at $10.73.Sandridge Energy (SD): SD is a 0.16% of the portfolio activist stake established in Q4 2017 at prices between $16 and $21 and the stock is now below that range at $8.06.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 2018, 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), and ~79% of Viskase Companies (VKSC). He is also known to have a position in Fannie/Freddie (FNMA) (FMCC).Note 2: Icahn had a ~53% of Voltari Corp (VLTC) and offered to buy the remaining shares at 80c. The offer is up from 58c and 68c offered previously.The spreadsheet below highlights changes to Icahn’s 13F stock holdings in Q1 2019:Regulatory filings thru 2/24/2019: 13D/A – 2/19 – VLTC – offer to purchase remaining shares increased from 58c to 68c, 13D/A – 12/7 – related, . 13D – 2/19 – CZR – 66.05M shares – 9.78% - this includes ~5.8M shares in convertible bonds. Total outlay – 566.6+79.4=$646M – cost-basis $9.78 , 13D/A – 2/14 – WBT – 11.94M shares – 8.52% - $197.2M outlay - $16.52 cost-basis – 10.08M shares in 13F and the rest in forward contracts, Form 4, 13D/A – 1/29 – CVRR – issue withdrawn after consummating remaining shares at $10.50, 13D/A - 1/18 & two 13D/A – 1/17 – CVR’s call-right exercise notification, 13D/A – 11/29, 13G – 1/7 – DELL – 10.9M shares – 6.3%, 13D/A – 12/31 – merger related, 13D/A, Form 4 – 12/19 – IEP – 175.44M shares – 91.7% - 4.65M shares acquired at $65.3, 13D/A- 12/19 – NWL -  41.8M shares – 9.89%, the 41.12M shares in 13F has a cost-basis of $26.4. Form 4 – 12/6 – CNDT – minor, 13D/A – 12/3 – 24.59M shares – 11.64% - 19.8M shares in 13F and rest in forward contracts. 13D/A, Form 4 – 11/28, 11/23, 11/19 – minor. Form 4 – 12/6 – ARII – merger consummation related - $70, 13D/A – 11/30 – EGN/FANG – 0 in EGN merger, 13D – 11/19 – 9.67M shares – 9.9% - 2M in options exercised included – 529.41+134.74=$664.15 total outlay - $68.68 cost-basis, 13D/A – 11/30 – AFSI – merger consummation,"