In this article, we shall discuss the top 12 picks in Carl Icahn's stock portfolio. To skip our detailed analysis of Icahn's history, his investment strategy, and hedge fund performance, go directly and see Carl Icahn Stock Portfolio: Top 5 Picks.
Carl Icahn is an American financier and currently serves as the Chief Executive Officer of Icahn Capital LP, an investment management firm headquartered in New York. Through the years, Icahn has garnered a reputation as a corporate raider, and has made his way to the Forbes 400 with a current net worth of $18.1 billion.
According to a report by the Wall Street Journal, Icahn amassed a $250 million profit off of Twitter after billionaire Elon Musk offered to finally close his $44 billion purchase of the social media platform. Tesla Inc. CEO Elon Musk had officially agreed to buy Twitter for $54.20 a share, causing the stock price to skyrocket. However, soon after, Musk reneged on his offer, prompting Twitter's stock price to fall drastically. This resulted in Twitter suing the SpaceX CEO in order to enforce the purchase. While the legal battle was ensuing, Icahn had quietly been purchasing stakes in Twitter Inc. while the stock price was depleted, and managed to have a collective stake of nearly $500 million, purchasing the shares while they were in the mid-$30s. On October 4, Musk proposed to move forward with the deal, causing the Twitter stock to jump 22% to $52 per share. This resulted in Icahn making an estimated profit of more than $250 million. Icahn knew that Musk would inevitably proceed with the Twitter deal, since it was unlikely that he would risk going to court, especially when the cards were stacked so heavily against him.
Carl Icahn of Icahn Capital
As of the second quarter of 2022, Icahn Capital has an incredibly diversified portfolio with significant stakes in the financial, basic materials, utilities, services, consumer goods, healthcare, and other industries. Icahn's portfolio comprises of 16 holdings, but its value declined from $21.87 billion in Q1 2022 to less than $20.86 billion in Q2 2022. The Q2 portfolio was highly concentrated, with the top 5 holdings making up for nearly 86% of the entire portfolio.
Some of the most prominent holdings in Carl Icahn's portfolio include Icahn Enterprises (NASDAQ:IEP), Sandridge Energy (NYSE:SD), and Newell Brands Inc. (NYSE:NWL). In this article, we shall discuss the top 12 picks from Carl Icahn's stock portfolio.
Our Methodology
The companies listed below have been chosen from Icahn Capital's 13F investment portfolio from Q2 2022. These are the top 12 picks of the hedge fund as of the June quarter.
Icahn Capital’s Stake Value: $201.01MPercentage of Icahn Capital’s 13F Portfolio: 0.96%Number of Hedge Fund Holdings: 18
Headquartered in Maumee, Ohio, Dana Inc. (NYSE:DAN) is an American company which specializes in the production and supply of digital equipment for conventional, hybrid and electric vehicles. Hedge fund sentiment around Dana Inc. (NYSE:DAN) has taken a hit as of Q2 2022, with 18 hedge funds long the stock. This was down from 20 hedge funds in the preceding quarter. Carl Icahn's Icahn Capital is the largest shareholder in the stock, owning more than 14.29 million shares worth at $201.01 million. Dana Inc. (NYSE:DAN) makes up for 0.96% of Icahn's investment portfolio for Q2 2022.
As of the second quarter of 2022, Dana Inc. (NYSE:DAN) posted a revenue of $2.59 billion, a $381 million increase from the preceding quarter, during which the company generated a revenue of $2.21 billion. Furthermore, in Q2 2022, the company posted an EPS of $0.08 per share, trailing behind estimates of $0.25 by $0.17. Cash flows are solid, and after a terrible 2020 fiscal year, Dana's (NYSE:DAN) prospects are looking favorable, with the stock acting as a value investment at the current valuation.
Icahn Capital’s Stake Value: $265.5MPercentage of Icahn Capital’s 13F Portfolio: 1.27%Number of Hedge Fund Holdings: 26
Headquartered in New Port Richey, Florida, Welbilt Inc. (NYSE:WBT) was an American manufacturer of cooking and warming equipment, and served fast food chains, institutional entities like schools and hospitals, full-service restaurants, and retail stores, including supermarkets and convenience stores. In April of 2021, Welbilt Inc. (NYSE:WBT) announced that it had entered into an agreement of sale with Middleby Corp. (NASDAQ:MIDD). The company was officially acquired by the Ali Group on July 29 for $3.4 billion. As a result of the transaction, the company's common stock was declared defunct and is no longer listed on the New York Stock Exchange.
Investor interest around Welbilt Inc. (NYSE:WBT) declined in the second quarter of 2022, with 26 hedge funds having a stake of $1.16 billion. This was down from Q1 2022, when 31 hedge funds were long the stock. Icahn Capital was the largest shareholder in Welbilt Inc. (NYSE:WBT) as of Q2 2022, and owned more than 11.15 million shares valued at $265.5 million. Icahn maintained his hold over the stock in Q2 2022, with Welbilt Inc. (NYSE:WBT) making up for 1.27% of Icahn's Q2 investment portfolio.
Here is what Turtle Creek Asset Management had to say about Welbilt Inc. (NYSE:WBT) in their Q1 2022 investor letter:
“The final example is Welbilt Inc. (NYSE:WBT), a company we had followed for years, but only added to our portfolio in mid-2020. As with many companies, its share price declined significantly in the March 2020 COVID Crash, falling by more than two-thirds. But whereas the share prices of many of the companies we owned quickly rebounded, Welbilt’s (NYSE:WBT) share price was still at a low point months later. By July of 2020, the stock was relatively attractive, so we added it to both TCEF and Turtle Creek United States Equity Fund at around $6.50 per share.5 During the last quarter of 2020, the share price rose into the low teens, during which time we trimmed the position by half…” (Click here to see the full text)
Icahn Capital’s Stake Value: $290.27MPercentage of Icahn Capital’s 13F Portfolio: 1.39%Number of Hedge Fund Holdings: 39
Headquartered in Laval, Quebec, Bausch Health (NYSE:BHC) is a Canadian multinational specialty pharmaceutical company which focuses on the development, manufacture, and marketing of different pharmaceutical products and branded generic drugs.
On September 9, Piper Sandler analyst David Amsellem lowered the price target on Bausch Health (NYSE:BHC) to $6 from $7, maintaining a Neutral rating on the shares. Icahn Capital maintained its hold over Bausch Health (NYSE:BHC) in Q2 2022, emerging as the largest stakeholder in the company. The fund owns 34.72 million shares valued at $290.27 million, and hence making up for 1.39% of Icahn's 13F investment portfolio.
Here is what Miller Value Partners had to say about Bausch Health (NYSE:BHC) in their Q2 2022 investor letter:
Icahn Capital’s Stake Value: $362.7MPercentage of Icahn Capital’s 13F Portfolio: 1.73%Number of Hedge Fund Holdings: 24
Herc Holdings Inc. (NYSE:HRI) is an American holding company based in Bonita Springs, Florida and like Icahn Enterprises (NASDAQ:IEP), Sandridge Energy (NYSE:SD), and Newell Brands Inc. (NYSE:NWL), is one of the top picks in Carl Icahn's stock portfolio.
On September 22, KeyBanc analyst Ken Newman raised the price target on Herc Holdings Inc. (NYSE:HRI) to $165 from $130, maintaining an Overweight rating on the shares. Icahn Capital is the largest shareholder in Herc Holdings Inc. (NYSE:HRI), owning more than 4.02 million shares which are worth $362.7 million. Herc Holdings Inc. (NYSE:HRI) makes up for 1.73% of Icahn's investment portfolio.
Icahn Capital’s Stake Value: $444.4MPercentage of Icahn Capital’s 13F Portfolio: 2.13%Number of Hedge Fund Holdings: 30
Based in Las Vegas, Nevada, Southwest Gas Holdings (NYSE:SWX) is an American investor-owned utility company which specializes in the distribution of natural gas to residential, commercial, and industrial customers in the South West.
Investor interest in Southwest Gas Holdings (NYSE:SWX) has seen a slight surge in the second quarter of 2022. In Q2 2022, 30 hedge funds held stakes of $933.5 million in Southwest Gas Holdings (NYSE:SWX), up from 29 funds in Q1 2022, who had a total stake value of $632.04 million. Icahn Capital increased their hold over the stock by 77%, emerging as the biggest shareholder in the company. Icahn has a collective stake of $444.4 million in Southwest Gas Holdings (NYSE:SWX), with the company making up for 2.13% of Carl Icahn's 13F portfolio. Like Icahn Enterprises (NASDAQ:IEP), Sandridge Energy (NYSE:SD), and Newell Brands Inc. (NYSE:NWL), Southwest Gas Holdings (NYSE:SWX) is one of the top picks in Carl Icahn's stock portfolio in Q2 2022.
Icahn Capital’s Stake Value: $508.54MPercentage of Icahn Capital’s 13F Portfolio: 2.43%Number of Hedge Fund Holdings: 29
Based in Norwalk, Connecticut, Xerox Holdings Corp. (NYSE:XRX) is an American multinational company which specializes in the sale of print and digital documentation products and services in more than 160 countries around the world.
Hedge fund sentiment around Xerox Holdings Corp. (NYSE:XRX) has cascaded as of Q2 2022, with 29 hedge funds long the stock, compared to 25 in the preceding quarter. Some prominent hedge funds to hold stakes in Xerox Holdings Corp. (NYSE:XRX) include Citadel Investment Group and AQR Capital Management. Icahn Capital is the largest stakeholder in Xerox Holdings Corp. (NYSE:XRX), owning more than 34.5 million shares valued at $508.54 million.
Icahn Capital’s Stake Value: $564.62MPercentage of Icahn Capital’s 13F Portfolio: 2.7%Number of Hedge Fund Holdings: 66
Based in Houston, Texas, Occidental Petroleum (NYSE:OXY) is an American company which focuses on hydrocarbon exploration and petrochemical manufacturing in the U.S, the Middle East, Canada, and Chile. In Q2 2022, the company posted an EPS of $3.16, beating estimates of $3.02 by $0.14. Occidental Petroleum (NYSE:OXY) generated a total revenue of $10.7 billion in the second quarter of 2022. As of Q2 2022, Warren Buffett's Berkshire Hathaway is the largest shareholder in the stock, having a total stake value of $9.43 billion. Carl Icahn tightened his hold over Occidental Petroleum (NYSE:OXY) by 2% in Q2 2022, having a total stake of $564.62 million. The company makes up for 2.7% of Icahn's 13F portfolio. Like Icahn Enterprises (NASDAQ:IEP), Sandridge Energy (NYSE:SD), and Newell Brands Inc. (NYSE:NWL), Occidental Petroleum (NYSE:OXY) is one of the most prominent stocks in Carl Icahn's stock portfolio.
On September 12, Citi analyst Scott Gruber downgraded Occidental Petroleum (NYSE:OXY) to Neutral from Buy, raising the price target to $67 from $65.
Here is what Smead Capital Management had to say about Occidental Petroleum (NYSE:OXY) in their Q2 2022 investor letter:
“For the quarter, our best-performing stocks were Continental Resources (CLR), Merck (MRK) and Occidental Petroleum Corporation (NYSE:OXY). Despite a steep sell-off in June in the oil and gas stocks, two of our oil stocks made the quarterly list.
