Billionaire Carl Icahn’s Stock Picks for 2013

Page 1 of 2

The most comprehensive data on what hedge funds and other major investors own comes in the form of 13F filings. These filings are made public six to seven weeks after the end of a quarter and disclose what many of the portfolio’s long equity holdings were at that time. Even with the time delay, we have found that it is possible to formulate investment strategies based on the information found in 13Fs. The most popular small cap stocks among hedge funds have tended to outperform the S&P 500 by 18 percentage points per year (learn more about our small cap strategy). Of course, 13Fs are also a list of “stock picks” from top investors and these stocks can be researched in more detail if they seem attractive.

Carl Icahn has had a busy month and a half. Since the beginning of 2013, the billionaire activist investor has reported a large stake in Transocean LTD (NYSE:RIG), booted CEO Aubrey McClendon out of Chesapeake Energy Corporation (NYSE:CHK), gotten a big win for his portfolio as Netflix, Inc. (NASDAQ:NFLX) crushed expectations, and is currently dismantling fellow billionaire Bill Ackman’s short position in Herbalife Ltd. (NYSE:HLF) following a charged, attention-getting confrontation with Ackman on CNBC. Here are some investment themes that stand out when comparing his 13F for the end of December 2012 to previous filings:

ICAHN CAPITAL LPHated energy companies. Icahn initiated a position of almost 6 million shares of Transocean, the contract driller which has been partially blamed for the Deepwater Horizon disaster and whose stock price has remained low as investors express concern over the deepwater drilling industry. He has since reported ownership of over 20 million shares of the company, giving him an investment of over $1 billion. Transocean trades at 12 times analyst consensus for 2013, and the five-year PEG ratio is 0.7. Omega Advisors, managed by fellow billionaire Leon Cooperman, is another major shareholder of Transocean (find Cooperman’s favorite stocks).

We’ve also mentioned Icahn’s position in Chesapeake, which he first reported early last year. The company’s CEO had been criticized for questionable personal business deals, as well as being too aggressive in expanding Chesapeake’s asset base; between management and cash flow issues the share price had been plunging when Icahn had announced his stake. The stock is up 23% year to date, signaling how satisfied the market is to see McClendon gone. Icahn had added shares of Chesapeake during Q4 2012 as well.

Icahn also increased his holdings in Netflix:

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!