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Carl Icahn’s 10 Favorite Stocks

Carl Icahn is one of the highest paid fund managers in the industry. He manages his Icahn Capital Lp using an activist philosophy – this means he tends to buy positions that are sizable enough to secure him a voting interest, then he pushes for organizational change, sale, merger, or acquisition. Because there is so much overlap, Icahn has been accused of insider trading, but has always been cleared of any charges. For a private investor, Icahn is great to watch because he tends to take on positions large enough that they have to be reported within a few days of the buy and, because he favors these large positions, he only invests in a company that he truly believes in, as opposed to merely selecting stocks based on market inefficiencies. Here are his top holdings as of June – in other words, the stocks Cal Icahn is most bullish about.

Carl Icahn - Icahn Capital Lp

1.  Icahn Enterprises LP (IEP) is Icahn’s largest position. He has 30.46% of his portfolio invested in it. IEP as a $3.07 billion market cap, a price to earnings ratio of 3.49 and a dividend yield of 1.10%. IEP recently traded for $35.87 a share. Icahn’s position in the company is worth $3.4 billion.

2.  Motorola Solutions, Inc. (MSI) has a market cap of $14.48 billion and a price-to-earnings ratio of 11.60. It recently traded at $42.19; it also offers a 2.10% dividend yield. Icahn owns a $1.7 billion position in the company.

3.  Federal Mogul Corp (FDML) is Icahn’s third largest position at $1.7 billion. It is a new position for the fund manager; he just bought into it in the second quarter of 2011. FDML has a market cap of $1.53 billion, a 7.23 price-to-earnings ratio and recently traded at $15.47 a share.

4.  Clorox, Co. (CLX) is an $8.58 billion company. It offers a 3.60% dividend yield, a price to earnings ratio of 16.21 and most recently traded at $65.24. Icahn holds $843 million in the company.

5.  Forest Labs, Inc. (FRX) has an $8.24 billion market cap and a price to earnings ratio of 7.28. It recently traded at $30.02. Icahn has a $782 million stake in the company. Robert Mignone, Bridger Management, is also a fan (see Mignone’s top picks).

6.  Motorola Mobility Wi (MMI) recently traded at $37.87 per share. The company has a market cap of $11.25 billion and is a favorite pick of Jonathon Jacobson, Highfields Management (check out Jacobson’s top picks). Ichan owns a $738 million position in the company.

7.  Lions Gate Entertainment Corp (LGF) has a market cap of $970 million and a price to earnings ratio of 42.91. It last traded at $7.08. Icahn holds a $295 million position in the company.

8.  American Railcar Industries, Inc. (ARII) is Icahn’s eighth largest position at its current value of $271 million. ARII has a market cap of $350 million; it recently traded at $16.41. Jim Simons of Renaissance Technologies is also a fan (read more about Simons’ favorite stocks).

9.  Vector Group, Ltd. (VGR) is a $250 million position for Icahn. The company has a market cap of $1.38 billion, a price to earnings ratio of 18.91 and a dividend yield of 9.30%. It recently traded at $17.40.

10.  Hain Celestial Group, Inc. (HAIN) is Icahn’s tenth largest position at $237 million. It recently traded at $29.17. HAIN has a $1.28 billion market cap and a price to earnings ratio of 23.72.

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