In this article, we discuss billionaire Carl Icahn’s top 5 picks. For Icahn’s comments on his investment philosophy and the complete top 10 list, read Billionaire Carl Icahn’s Top 10 Picks.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind, here are Carl Icahn’s top 5 stock picks:
5. Cheniere Energy, Inc. (NYSE: LNG)
Value: $970,601,000
Percent of Carl Icahn’s 13F Portfolio: 4.83%
Number of Hedge Fund Holders: 38
Cheniere Energy is a Texas-based gas company with operations in the U.S., Singapore, U.K. and Chile. The stock was recently upgraded to Buy from Hold by CFRA, with an $85 price target, raised from $55. The firm said that the company has strong opportunities to boost its performance in 2021, driven by a strengthening LNG market and price disparities between U.S. and international markets. The stock is up about 94% over the last 12 months.
With a $970.6 million stake in Cheniere Energy, Carl Icahn’s Icahn Capital owns 16.2 million shares of the company as of the end of the fourth quarter of 2020. Our database shows that 38 hedge funds held stakes in LNG at the end of the fourth quarter, versus 40 funds at the end of the third quarter.
4. Herbalife Nutrition Ltd. (NYSE: HLF)
Value: $985,307,000
Percent of Carl Icahn’s 13F Portfolio: 4.91%
Number of Hedge Fund Holders: 41
Herbalife is a California-based nutritional products company. Carl Icahn has a history with this stock. He waged a war against his rival Pershing Square’s Bill Ackman in 2013, buying a huge stake in the company, challenging Ackman who had shorted the stock, betting that its value would tank to zero. Ackman lost close to $1 billion as a result, ending his entire stake in Herbalife in 2019. Herbalife accounts for about 4.9% of Icahn’s total portfolio.
Herbalife shares are up about 55% over the last 12 months.
As of the end of the fourth quarter, 41 hedge funds in Insider Monkey’s database of 887 funds held stakes in HLF, compared to 36 funds in the third quarter. Icahn Capital is the company’s most significant stakeholder, with 20.5 million shares worth $985.3 million.
3. CVR Energy, Inc. (NYSE: CVI)
Value: $1,060,861,000
Percent of Carl Icahn’s 13F Portfolio: 5.28%
Number of Hedge Fund Holders: 19
Texas-based CVR ranks 3rd on the list of billionaire Carl Icahn’s top 10 stock picks. The stock is up 63% year to date. In February, the stock was upgraded to Buy from Neutral and increased its price target to $31 from $16. The firm said that the market is not valuing the company’s foray into renewable diesel. Citi likes CVR’s Wynnewood project, which it believes is a “low-cost option play” to capitalize on the biomass market.
There were 19 hedge funds in our database that held stakes in CVR Energy at the end of the fourth quarter, compared to 18 funds in the third quarter.
2. Occidental Petroleum Corporation (NYSE: OXY)
Value: $1,534,138,000
Percent of Carl Icahn’s 13F Portfolio: 7.64%
Number of Hedge Fund Holders: 49
Occidental Petroleum is the second-biggest stock holding of Billionaire Carl Icahn, as of the end of the fourth quarter. Occidental plans to reach net-zero emissions for its operations by 2040 and net-zero emissions for its products by 2050. The company has a strong footprint in the Permian and DJ basins. The stock is up 149% over the last 12 months.
According to our database, the number of OXY’s long hedge funds positions increased at the end of the fourth quarter of 2020. 49 hedge funds hold a position in Occidental Petroleum Corp. by the end of December, compared to the 43 funds in the third quarter. The company’s biggest stakeholder is Icahn Capital, with 88.6 million shares worth $1.5 billion.
1. Icahn Enterprises L.P. (NASDAQ: IEP)
Value: $11,235,946,000
Percent of Carl Icahn’s 13F Portfolio: 56.01%
Number of Hedge Fund Holders: 4
Topping the list of billionaire Carl Icahn’s top 10 stock picks is Icahn Enterprise, an investment conglomerate with investments in various sectors like metals, hotels, automobiles, industrials, retail, banks and real estate. Carl Icahn has a 95% stake in the company. The company in 2016 acquired Trump Entertainment Resorts, which also owned Hard Rock Hotel & Casino Atlantic City. In a year-to-date basis, the stock is up 7.8%.
As of the end of the fourth quarter, 4 hedge funds in Insider Monkey’s database of 887 funds held stakes in Icahn Enterprises.
You can also take a peek at John Rogers’ Top 10 Stock Picks and Value Investor Bill Miller’s Top 10 Stock Picks.
