CVR Energy, Inc. (CVI) & Herbalife Ltd. (HLF): Carl Icahn’s Latest Small Cap Picks

Federal-Mogul Holdings Corp (NASDAQ:FDML) is down by nearly 25% over the last year with the latest dip coming after the auto parts manufacturer posted disappointing financial results for the fourth quarter. However, the company did recently announce its two new joint ventures with Anand India forming two supplier companies for auto parts in that region.

Icahn initiated a stake in Herbalife Ltd. (NYSE:HLF) during the first quarter of 2013 by purchasing some 16.35 million shares valued at $612.5 million. The stock has risen some 12.5% since then. As of the end of 2014, Icahn’s stake in the company amounted to 17 million shares valued at $640.9 million.

Herbalife Ltd. (NYSE:HLF)’s stock appreciated by 22% in the last week after a judge in the US District Court in California dismissed a lawsuit initiated by a group of shareholders that lost money after the company’s stock price dropped on the back of scrutiny by the government of Herbalife’s practices. Activist investor Bill Ackman of Pershing Square, has been a staunch campaigner of the idea that Herbalife is in fact a pyramid scheme holding a significant short position in the company. The manufacturer of nutrition shakes for weight loss is still down about 13.4% over the last year. Among 59 billionaires that we track, five were long in the company at the end of the fourth quarter with an aggregate investment of $835 million. George Soros’ Soros Fund Management holds 3.45 million shares of Herbalife valued at $130 million as of the end of 2014.

Disclosure: none