"Tracking Carl Icahn’s Portfolio – Q3 2022 Update"
"Carl Icahn’s 13F portfolio value increased from $20.86B to $21.23B this quarter.They increased Southwest Gas Holdings while decreasing Cheniere Energy.Icahn Enterprises, CVR Energy, and FirstEnergy 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 11/14/2022. Please visit our  to get an idea of his investment philosophy and our  for the fund’s moves during Q2 2022.This quarter, Icahn’s 13F portfolio value increased ~2% from $20.86B to $21.23B. The number of holdings increased from 16 to 17. The portfolio is very concentrated with the largest five positions accounting for ~86% of the entire holdings: Icahn Enterprises, CVR Energy, FirstEnergy, Occidental Petroleum warrants, and Twitter Inc.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:Twitter Inc.: The large (top five) Twitter position was built in the mid-30s. The trade realized substantial short-term gains as Elon Musk’s deal for Twitter closed at $54.20 per share.Crown Holdings (CCK): CCK is a 0.40% of the portfolio stake established this quarter at prices between ~$80 and ~$102 and the stock currently trades at $80.50.Note 1: Regulatory filings show them beneficially owning 10.2M shares (8.5% of the business). This includes forward contracts at an aggregate price of $75 per share. The total outlay was ~$687M.Note 2: A director appointment and nomination agreement was reached last week for the company’s 2023 election.Stake Disposals:Welbilt Inc. (WBT) previously Manitowoc Food Service: The small 1.21% 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. Icahn’s overall cost-basis was ~$13 and they had a ~9.5% ownership stake in the business. Ali Group acquired Welbilt in a $24 all-cash deal that closed in July.Stake Decreases:Cheniere Energy (LNG): LNG is now a small 1.65% portfolio position. The bulk of the original large stake 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. Q4 2020 saw another ~20% selling at prices between ~$46 and ~$61. That was followed with another ~87% reduction over the last three quarters at prices between ~$103 and ~$174. The stock currently trades at ~$158.Stake Increases:Icahn Enterprises (IEP): IEP position has seen consistent increases 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, 175.4M in 2018, 197M in 2019, 222M shares in 2020, 257M shares in 2021, and 289M shares as of Q3 2022. The stock currently trades at $50.71. IEP Book Value per share is ~$12 per share.Note: The stake increase over the years is primarily due to them taking the dividend consideration in additional shares rather than cash.Occidental Petroleum (OXY) wts: The ~3% of the portfolio position was established in Q3 2020 when 19.3M warrants (strike 22, 8/3/2027 expiry) were purchased for ~$2.75 per warrant. The stake saw a ~20% selling in Q3 2021. There were minor increases in the last three quarters. The warrants currently trade at $40.80.Note: They had a large position in the common stock of OXY but that was sold in Q1 2022.Southwest Gas Holdings (SWX): SWX is a 2.17% of the portfolio position established over the two quarters through Q3 2021 at prices between ~$63 and ~$72. There was a ~75% stake increase last quarter through a tender offer at $82.50 per share. That was followed with a ~30% further increase this quarter at prices between ~$70 and ~$88. The stock currently trades at $63.69.Note 1: They have a ~9.8% ownership stake in the business.Note 2:  The position was made public last October in a regulatory  when they said they were opposed to Southwest’s acquisition of Questar Pipeline, Dominion Energy’s (D) transportation and storage business. A proxy contest and a $75 per share tender offer for all outstanding shares soon . A motion to block the Quester Pipeline deal but later a deal was reached whereby the CEO was replaced.Kept Steady:CVR Energy Inc. (CVI): CVI is a top three ~10% 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 $29.65.Note: Two MLPs were carved out since the 2012 tender: CVR Refining the refining portion and CVR Partners (UAN) the nitrogen fertilizer unit. CVR Energy had 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.FirstEnergy Corp (FE): FE is a 3.31% of the portfolio position purchased in Q1 2021 at prices between ~$29.50 and ~$35.60 and the stock currently trades at $40.93.Newell Brands (NWL): NWL is a 2.16% of the portfolio position established in Q1 2018 at a cost-basis of $27.40 per share. The stock is now at $13.07. 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. There was a ~25% reduction in Q1 2022 at $25.86 per share in a repurchase agreement with the company.Note 1: They still have a ~8.2% stake in the business.Note 2: In April 2019, rival activist Starboard Value came to an agreement with Carl Icahn whereby they now together control Newell’s board.Xerox Corporation (XRX): XRX is a 2.11% of the portfolio position established in Q4 2015 at prices between $24 and $32. The four quarters through Q2 2021 had seen a roughly one-third stake increase. Their overall cost basis is ~$25 and they have a ~22% ownership stake in the business. The stock is now at $15.19. Last quarter saw a minor ~7% increase.Note 1: 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 May 2020, 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.Herc Holdings (HRI): HRI is a ~2% 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 ~$127. Q4 2021 saw a ~11% trimming at prices between ~$180 and ~$190.Note: Regulatory filings since the quarter ended show them owning 3.7M shares (12.63% of business). This is compared to 4.02M shares in the 13F report. The reduction happened at prices in the low-130s.Bausch Health (BHC): The 1.13% of the portfolio BHC position was purchased in Q4 2020 at prices between ~$15.30 and ~$21 and increased by ~575% next quarter at prices between ~$21.25 and ~$34.40. The stock currently trades well below those ranges at $7.13.Note: They own 34.7M shares (~10% of the business). Two Icahn nominees are on the board.Dana Inc. (DAN): The 0.77% DAN stake was established in Q4 2020 at prices between ~$13.25 and ~$20 and increased by ~200% next quarter at prices between ~$19 and ~$27. Q3 2021 also saw a ~20% stake increase at prices between $20.90 and $24.60. The stock currently trades at $15.56.Note: Icahn controls ~10% of Dana Inc.Conduent Inc. (CNDT): The small 0.60% portfolio stake came about as a result of Conduent’s spinoff from Xerox that closed in January 2017. Terms called for Xerox shareholders to receive Conduent shares in the ratio 1:5. Icahn owned 99M shares of Xerox for which he received 19.8M shares of Conduent. CNDT started trading at ~$15 and currently goes for $3.77. Q2 2019 saw a ~60% stake increase at around $9 per share. That was followed with a ~20% increase in Q4 2019 at ~$6.50 per share.Note: Their ownership interest in Conduent is at ~18% of the business.Sandridge Energy (SD): SD is a 0.37% of the portfolio activist stake established in Q4 2017 at prices between $16 and $21 and the stock is now at $17.24.Note: Icahn has a ~13.5% 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.International Flavors & Fragrances (IFF): IFF is a very small 0.28% of the portfolio stake established in Q1 2022 at prices between ~$116 and ~$150 and the stock currently trades at ~$103.Bausch + Lomb Corp (BLCO): BLCO is a spinoff from Bausch Health that started trading in May this year at ~$18 per share. The stock currently trades at $14.87. In June, two nominees of Icahn joined the board.Note: Icahn also owns significant stakes in the following OTC stocks: ~36M shares (48.6% of business) of Enzon Pharmaceuticals (ENZN) at a cost-basis of ~$2.70, and ~89% of Viskase Companies (VKSC). He is also known to have a position in Fannie/Freddie (FNMA) (FMCC). The Enzon position saw a substantial increase in Q4 2020 as they participated in a rights offering.The spreadsheet below highlights changes to Icahn’s 13F stock holdings in Q3 2022:Source: John Vincent. Data constructed from Carl Icahn’s 13F filings for Q2 2022 and Q3 2022.Icahn’s 13F vs IEP’s private investment in the fund: Response to reader query – 10/11/2022 – “Thank you for posting this 10K info. As general partner of the fund, IEP both invest and manage the portfolio. Their investment in the fund was valued at ~$4.7B. This is compared to Icahn's 13F filing which shows ~$21B. We also know Icahn primarily invests through this fund. Although not certain, as disclosures are not granular enough, it is reasonable to say ~22% of the 13F value distributed at the same percentages in the 13F is likely IEP's private capital.”. The 10K info quoted by reader was the following: “Our investment segment is comprised of various private investment funds in which we have general partner interests and through which we invest our private capital. As a general partner we provide investment advisory and certain administrative and back-office services to the Investment Funds but do not provide such services to any other entities, individuals or accounts. We and certain of Mr. Ichan’s family members and affiliates are the only investors in the Investment Funds. Interests in the Investment Funds are not offered to outside investors. We had interests in the Investment Funds with a fair value of approximately $4.7 billion and $4.2 billion as of March 31, 2022 and December 31, 2021, respectively.”Note for all update articles – Get the latest investor presentation and give the link at their website in the Note which has the link and make sure Slide 5 is still the correct one.Regulatory filings from 6/11/2022 to 9/5/2022: 13D/A – 9/6 - SWX  - 6.48M shares – 9.7% of business, 13D/A – 8/16 –5.81M shares – 8.7% of business. 13D/A – 7/29 – WBT – zero - $24 cash-deal closed related filing. Form 4, 13D/A – 9/30 - IEP –  288.56M shares (86.48% of business) – 10.9M shares @ 50.9336, Form 4, 13D/A – 7/1 –11M shares acquired – 277.7M shares (87.32% of business).Note: TWTR – Ichan built a stake in the mid-30s over the last few months -"