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

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!