"Tracking Carl Icahn’s Portfolio – Q4 2015 Update"
"Carl Icahn’s US long portfolio increased from $27.88B to $29.44B this quarter.Hertz Global Holdings and American International Group were increased substantially and Pep Boys acquired during the quarter.The huge Apple position was reduced and it is now at ~16% 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 02/16/2016. Please visit our  to get an idea of his investment philosophy and our  for the fund’s moves during Q3 2015.This quarter, Icahn’s US long portfolio increased 5.60% from $27.88B to $29.44B. The number of holdings increased from 25 to 26. The portfolio is very concentrated with the largest five positions accounting for ~65% of the entire holdings: Icahn Enterprises, Apple Inc., CVR Energy Inc., American International Group, 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 9).Stake Disposals:None.New Stakes:Pep Boys Manny Moe & Jack (PBY): Following a bidding war with Bridgestone, Icahn agreed to buy PBY at $18.50 cash and that transaction closed last month. The 13F showed a small 0.41% position.Stake Decreases: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. This quarter saw an about turn: ~13% reduction at prices between $105 and $123. The stock currently trades at $96.04. Apple is the second largest position in the portfolio at 16.36%.Gannett Inc. (GCI) previously Gannett SpinCo: GCI is a very small 0.36% of the US long portfolio stake established in Q2 2015 as a result of  Gannett’s Tegna Inc. spin-off and rename transaction that closed in June 2015. This quarter saw a ~13% trimming. Icahn controls 5.6% 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.Tegna Inc. (TGNA) previously Gannett: Icahn holds 12.77M shares (5.8% 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. This quarter saw a ~15% reduction at prices between $22.39 and $28.68. The stock currently trades at $23.91 and the stake is at 1.11% of the US long portfolio.Note: The cost-basis quoted above is adjusted for the publishing business spinoff that closed in June.Stake Increases:American International Group (AIG): AIG was a minutely small 0.28% portfolio stake last quarter. It was increased to a large (top five) 8.89% position this quarter at prices between $57 and $64. The stock currently trades below that range at $51.52. It is an activist stake and Icahn’s ownership is at ~3.4%. For investors attempting to follow Icahn, AIG is a good option to consider for further research.Note: Icahn is urging a 3-way split-up of AIG - life, property-and-casualty and mortgage units. The idea is that each one will be small enough to avoid the Systemically Important Financial Institution label.Cheniere Energy (LNG): LNG is a large 4.14% portfolio position. The bulk of it was purchased last quarter at prices between $47.47 and $70.65. This quarter saw a ~15% increase at prices between $36 and $54. The stock currently trades well below the low end of that range at $29.37. Icahn’s ownership stake in the business is ~14%.Note: 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.Freeport-McMoran Inc. (FCX): FCX is a 2.39% of the portfolio stake established last quarter at prices between $7.92 and $18.62. The stock currently trades below the low end of that range at $6.91. Icahn controls ~10% of the business. This quarter saw a ~4% increase.Hertz Global Holdings (HTZ): HTZ is a 3.08% 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. This quarter saw another ~23% increase at prices between $13.70 and $19.85. The stock currently trades at $8.30. Icahn owns 14.34% of the business. For investors attempting to follow Icahn, HTZ is a good option to consider for further research.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, and to ~117M shares in 2015. 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 $48.75.Kept Steady:CVR Energy Inc. (CVI): CVI is a huge (top three) 9.52% 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 $23.96.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. In August 2015, CVR Partners agreed to merge with Rentech Nitrogen (RNF).CVR Refining LP (CVRR): CVRR is a small 0.39% 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 $11.01.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 $2.01. 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 3.22% 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 $4.25. Q1 2015 saw a ~14% increase at prices between $12.61 and $16.09. Icahn controls ~82% of the business.Herbalife (HLF): HLF is a 3.10% 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 $47.78.Note: Herbalife is being investigated by the FTC (Civil Investigative Demand - CID).Hologic Incorporated (HOLX): HOLX is a 3.70% of the US long portfolio activist stake established in Q4 2013 at around $21 per share. Last quarter saw a ~18% reduction at prices between $37.22 and $42.92. The stock currently trades at $34.49. 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.Manitowoc Company (MTW): MTW is a small 0.55% 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 $15.32. 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 2015 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 0.49% 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 $7.81. 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 $18.70. 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.PayPal Holdings (PYPL): PYPL is a fairly large (top five) 5.69% of the 13F portfolio position. It was established as a result of the spinoff of PayPal Holdings from eBay Inc. that closed in July 2015. Icahn sold the eBay stake but held on to the PayPal position. The stock has not budged since the spinoff and trades at $35.76.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 $0.43. Icahn controls 9.34% of the business and the stock is down a whopping ~98% since the spin-off.Transocean Ltd. (RIG): RIG is a small ~0.90% 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 $8.34.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 $3.99.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 6.86% of ARII, ENZN, and MENT respectively.Note 1: The Mentor Graphics stake saw a ~50% reduction at $8.12 last week.Note 2: 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 Q4 2015:Form 3/4, 13G/D/A Filings after 8/15/2015: 11/12/2015 - 13D/A - LNG - 29,867,977 shares - 12.65% of business.11/3/2015 - 13D/A - ARII - 11,871,268 shares - 59.82% of business - increase due to repurchase.  10/16/2015 - 13D/A - TGNA - nothing relevant. 10/7/2015 - 13D/A - FCX - nothing relevant. 10/2/2015 - Form 4 - CVRR - minor disposal by wife. 8/27/2015 - 13D - FCX - 88M shares - 8.46% of business - approximate cost-basis around $15. 8/17/2015 - 13D - TPCA - 26,312,500 shares - could increase from 67.89% to 76.91% after repurchase.Note: Sep 14, 2015 - from MarketWatch - Carl Icahn raised his stake in Cheniere to 9.59% from 8.18%, the billionaire investor reported in a regulatory filing on Monday. Icahn now owns 22,682,159 shares in the energy company, according to a filing with the Securities and Exchange Commission, up from the 19,353,530 shares reported on Aug. 31.Note: Sep 9, 2015 - Chanos announced a short-position in LNG this week. See"