Carl Icahn’s Stock Portfolio: Top 12 Picks

In this article, we take a look at Carl Icahn’s stock portfolio: top 12 picks. You can skip our detailed analysis of Mr. Icahn’s history and investment strategy, and go directly to Carl Icahn’s Stock Portfolio: Top 5 Picks.

Carl Icahn is an American entrepreneur and hedge fund manager whose total net worth stands at $15.7 billion as of 2021, according to Forbes. Mr. Icahn is the founder and controlling shareholder of his company, Icahn Enterprises L.P. (NASDAQ: IEP). The American billionaire manages over $24.2 billion in 13F securities through his hedge fund, Icahn Capital. Icahn has earned the title of “corporate raider”, as he is renowned for his aggressive investment strategies that have led to corporate takeovers, not to mention the billionaire’s notorious activism.

Mr. Icahn made an investment in August of 2006, in the video game publisher Take-Two Interactive. He worked his way up to increase his holdings to 11.3% in 2009, which made him the company’s second-largest shareholder. In January 2007, he invested in Telik, which is a biotechnology company engaged in cancer research. Mr. Icahn owned 9.2% of the cancer research firm. The billionaire also bought about 33.5 million shares of Motorola with the notion of getting a place on the board. Moving on to February of 2007, Mr. Icahn made a takeover offer to Lear Corporation’s board of directors. The offer was accepted. At this very time, Mr. Icahn invested $50 million in Motricity, a North Carolina-based provider of mobile content delivery technology. By the third quarter of 2007, Mr. Icahn also owned 8.5% of the business software company BEA Systems, which went up to 13% in October.

“My investment philosophy, generally, with exceptions, is to buy something when no one wants it.” – Carl Icahn

Mr. Icahn chooses stocks that reflect poor price-to-earnings (P/E) ratios or with book values that exceed the current market valuation. He then does aggressive buying to systematically take over the board of directors of an organization. Mr. Icahn bluntly suggests that many of the top executives are paid more than they should and that their salaries have little to no impact on a company’s stock performance. He believes that by his management strategies he can increase overall shareholder value and satisfaction and eradicate poor business practices that are being carried out by an organization.

Some of the top stock picks according to the investor as of the end of the second quarter are Newell Brands Inc. (NASDAQ: NWL), CVR Energy, Inc. (NYSE: CVI), Cheniere Energy, Inc. (NYSE: LNG), Occidental Petroleum Corporation (NYSE: OXY). As of the second quarter of 2021, the billionaire bought an additional 2.37 million shares in Xerox Holdings Corporation (NASDAQ: XRX), up 9% from his first-quarter 13F filings. The investment covers 3.01% of the billionaire’s latest 13F portfolio.

Why should we pay attention to Carl Icahn’s stock picks? Apart from the billionaire being notorious for his aggressive and active investment strategies, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Carl Icahn's Stock Portfolio: Top 12 Picks

Our Methodology

With this context in mind, here is our list of Carl Icahn’s stock portfolio: top 12 picks. These were ranked according to the investment portfolio of Icahn Capital at the end of the second quarter of 2021. The analyst ratings and hedge fund sentiment of each company are also discussed to provide readers with some more context for their investment decisions.

Carl Icahn’s Stock Portfolio: Top 12 Picks

12. Conduent Incorporated (NASDAQ:CNDT)

Carl Icahn’s Stake Value: $286,120,000

Percentage of Carl Icahn’s 13F Portfolio: 1.17%

Number of Hedge Fund Holders: 23

Conduent Incorporated (NASDAQ: CNDT) provides business process services with capabilities in transaction-intensive processing, analytics, and automation in the United States, Europe, and internationally. The company carries its operations through three segments: Commercial Industries, Government Services, and Transportation. Conduent Incorporated (NASDAQ: CNDT) was founded in 2016 and is headquartered in Florham Park, New Jersey.

This August, JPMorgan analyst Puneet Jain raised the price target on Conduent Incorporated (NASDAQ: CNDT) to $9 from $8 and reiterated a Neutral rating on the shares.

Conduent Incorporated (NASDAQ: CNDT) is ranked twelfth on Carl Icahn’s stock portfolio. The investor owns more than 38 million shares in Conduent Incorporated (NASDAQ: CNDT), worth over $286 million. The investment represents 1.17% of Icahn Capital’s 13F holdings.

Newell Brands Inc. (NASDAQ: NWL), CVR Energy, Inc. (NYSE: CVI), Cheniere Energy, Inc. (NYSE: LNG), Occidental Petroleum Corporation (NYSE: OXY), and Conduent Incorporated (NASDAQ: CNDT) contribute significantly to Carl Icahn’s latest 13F portfolio.

Curreen Capital recently released their first quarter 2021 Investor Letter, in which the firm mentioned Conduent Incorporated (NASDAQ: CNDT). Here’s their take on the company:

“Conduent is a business process services company. It handles transaction intensive processing for government and commercial customers. After years of weak sales, declining profits, conflict with its largest shareholder (Carl Icahn), and the loss of its CEO – the company is turning around. Conduent’s new CEO is addressing the company’s key problems and is driving sales growth. Conduent currently trades at an extremely attractive upside-to-downside ratio.”

11. Herc Holdings Inc. (NYSE:HRI)

Carl Icahn’s Stake Value: $503,731,000 

Percentage of Carl Icahn’s 13F Portfolio: 2.07%

Number of Hedge Fund Holders: 20

Herc Holdings Inc. (NYSE: HRI), through its subsidiaries, operates as an equipment rental supplier primarily in the United States and internationally. The company rents aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment. Herc Holdings Inc. (NYSE: HRI) was founded in 1965 and is based in Bonita Springs, Florida.

Baird analyst Mircea Dobre raised the price target on Herc Holdings Inc. (NYSE: HRI) to $158 from $145 and keeps an Outperform rating on the shares.

Herc Holdings Inc. (NYSE: HRI) is ranked eleventh among Carl Icahn’s stock picks. Mr. Icahn owns 4.49 million shares in the company that represent 2.07% of Icahn Capital’s 13F holdings. The investment is worth $503.7 million.

As of the second quarter of 2021, Herc Holdings Inc. (NYSE: HRI) reported earnings per share of $1.57, beating estimates by $0.33. The company generated revenues of $490.9 million, up 33.40% year over year, and beating estimates by $33.96 million. The share price for Herc Holdings Inc. (NYSE: HRI) has gained 69.11% over the past six months, and 152.49% year to date.

By the end of the second quarter of 2021, 20 hedge funds out of the 873 tracked by Insider Monkey held stakes in Herc Holdings Inc. (NYSE: HRI) worth roughly $1.07 billion. This is compared to 17 hedge funds in the previous quarter with a total stake value of approximately $954.6 million.

Herc Holdings Inc. (NYSE: HRI) is ranked among the top stock picks of Mr. Icahn’s hedge fund, Icahn Capital. Others among the top are Newell Brands Inc. (NASDAQ: NWL), CVR Energy, Inc. (NYSE: CVI), Cheniere Energy, Inc. (NYSE: LNG), Occidental Petroleum Corporation (NYSE: OXY), and Conduent Incorporated (NASDAQ: CNDT).

10. FirstEnergy Corp. (NYSE:FE)

Carl Icahn’s Stake Value: $705,790,000

Percentage of Carl Icahn’s 13F Portfolio: 2.9%

Number of Hedge Fund Holders: 36

FirstEnergy Corp. (NYSE: FE), through its subsidiaries, generates, transmits, and distributes electricity in the United States. The company operates through Regulated Distribution and Regulated Transmission segments. FirstEnergy Corp. (NYSE: FE) serves approximately 6 million customers in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York. FirstEnergy Corp. (NYSE: FE) was incorporated in 1996 and is headquartered in Akron, Ohio.

This July, Mizuho analyst Paul Fremont raised his price target on FirstEnergy Corp. (NYSE: FE) to $38 from $37 and reiterated a Neutral rating on the shares.

As of the second quarter of 2021, FirstEnergy Corp. (NYSE: FE) reported earnings per share of $0.59, beating estimates by $0.03. The company also reported revenues of up to $2.62 billion, a 3.97% year-over-year increase. FirstEnergy Corp. (NYSE: FE) has gained 4.88% over the past six months and 24.43% year to date.

By the end of the second quarter of 2021, 36 hedge funds out of the 873 tracked by Insider Monkey held stakes in FirstEnergy Corp. (NYSE: FE) worth roughly $1.7 billion. This is compared to 51 hedge funds in the previous quarter with a total stake value of approximately $1.84 billion.

9. Xerox Holdings Corporation (NASDAQ:XRX)

Carl Icahn’s Stake Value: $731,542,000

Percentage of Carl Icahn’s 13F Portfolio: 3.01%

Number of Hedge Fund Holders: 25

Xerox Holdings Corporation (NASDAQ: XRX) functions as a workplace technology company and designs, develops, and sells document management systems and solutions in the United States, Europe, Canada, and internationally. Xerox Holdings Corporation (NASDAQ: XRX) was incorporated in 1906 and is headquartered in Norwalk, Connecticut.

This April, Citi analyst Jim Suva raised his price target on Xerox  Holding Corporation (NASDAQ: XRX) to $16 from $13 and kept a Sell rating on the shares.

Xerox  Holding Corporation (NASDAQ: XRX) is the 9th most valuable investment made by Mr. Icahn. Xerox  Holding Corporation (NASDAQ: XRX) represents 3.01% of Icahn Capital’s 13F holdings. According to the latest filings, Mr. Icahn has stakes worth $731.5 million in Xerox  Holding Corporation (NASDAQ: XRX).

As of June 2021, Xerox  Holding Corporation (NASDAQ: XRX) has registered an EPS of $0.47, beating estimates by $0.10. The company beat revenue estimates by $72.7 million and generated $1.79 billion in revenues, up 22.39% year over year.

By the end of the second quarter of 2021, 25 hedge funds out of the 873 tracked by Insider Monkey held stakes in Xerox Holding Corporation (NASDAQ: XRX) worth roughly $1.11 billion. This is compared to 30 hedge funds in the previous quarter with a total stake value of approximately $1.04 billion.

8. Navistar International Corporation (NYSE:NAV)

Carl Icahn’s Stake Value: $744,483,000

Percentage of Carl Icahn’s 13F Portfolio: 3.06%

Number of Hedge Fund Holders: 22

Navistar International Corporation (NYSE: NAV) is an American holding company created in 1986 as the successor to International Harvester. Navistar International Corporation (NYSE: NAV) operates as the owner of an international brand of trucks and diesel engines. The company also produces buses under the IC Bus brand.

Navistar International Corporation (NYSE: NAV) is among the top ten stock picks of billionaire Carl Icahn. Mr. Icahn owns 16.7 million shares in the company and has stakes worth $744.4 million. The investment represents 3.06% of Icahn Capital’s 13F portfolio.

By the end of the second quarter of 2021, 22 hedge funds out of the 873 tracked by Insider Monkey held stakes in Navistar International Corporation (NYSE: NAV) worth roughly $1.36 billion. This is compared to 21 hedge funds in the previous quarter with a total stake value of approximately $2.07 billion.

Navistar International Corporation (NYSE: NAV), Newell Brands Inc. (NASDAQ: NWL), CVR Energy, Inc. (NYSE: CVI), Cheniere Energy, Inc. (NYSE: LNG), Occidental Petroleum Corporation (NYSE: OXY), and Conduent Incorporated (NASDAQ: CNDT) make up the 13F portfolio of Carl Icahn’s hedge fund, Icahn Capital.

7. Cloudera, Inc. (NYSE:CLDR)

Carl Icahn’s Stake Value: $829,912,000

Percentage of Carl Icahn’s 13F Portfolio: 3.41%

Number of Hedge Fund Holders: 34

Cloudera, Inc. (NYSE: CLDR) offers a suite of data analytics and management products in the United States, Europe, and Asia. The company operates through two segments: Subscription and Services. Cloudera, Inc. (NYSE: CLDR) also provides consulting, professional, and education services. It serves corporate enterprises and public sector organizations primarily through its direct sales force. Cloudera, Inc. (NYSE: CLDR) was incorporated in 2008 and is headquartered in Santa Clara, California.

Cloudera, Inc. (NYSE: CLDR) is seventh on Icahn Capital’s 13F holdings and makes up 3.41% of their investment portfolio. Mr. Icahn owns more than 52 million shares in the company, boasting a total stake value of over $829.9 million.

As of the fiscal second quarter of 2021, Cloudera, Inc. (NYSE: CLDR) has beaten EPS estimates by $0.06 and reported earnings per share of $0.15.

By the end of the second quarter of 2021, 34 hedge funds out of the 873 tracked by Insider Monkey held stakes in Cloudera, Inc. (NYSE: CLDR) worth roughly $1.37 billion. This is compared to 30 hedge funds in the previous quarter with a total stake value of approximately $865.6 million.

Newell Brands Inc. (NASDAQ: NWL), CVR Energy, Inc. (NYSE: CVI), Cheniere Energy, Inc. (NYSE: LNG), Occidental Petroleum Corporation (NYSE: OXY), Conduent Incorporated (NASDAQ: CNDT), and Cloudera, Inc. (NYSE: CLDR) are among the top ten picks of Carl Icahn’s Icahn Capital.

ClearBridge Investments, an investment management firm, published its “SMID Cap Growth Strategy” first quarter 2021 investor letter, in which it mentioned Cloudera, Inc. (NYSE: CLDR). Here’s their take on whether or not you should consider investing in the tech company:

Cloudera, in the IT sector, provides software to manage and analyze data. The traditionally on-premise data lake company with a blue chip client base has recently added cloud capabilities, which should stem client churn, increase workloads at existing customers, and add new clients, with the potential to reaccelerate revenue growth from the high single digits to 15%-20%.”

6. Bausch Health Companies Inc. (NYSE:BHC)

Carl Icahn’s Stake Value: $1,000,080,000

Percentage of Carl Icahn’s 13F Portfolio: 4.11%

Number of Hedge Fund Holders: 45

Bausch Health Companies Inc. (NYSE: BHC) develops, manufactures, and markets a range of pharmaceutical, medical device, and over-the-counter (OTC) products primarily in the therapeutic areas of eye health, gastroenterology, and dermatology. The company operates through four segments: Bausch + Lomb/International, Salix, Ortho Dermatologics, and Diversified Products. Bausch Health Companies Inc. (NYSE: BHC) is headquartered in Laval, Canada.

This July, Spin-Off Research initiated coverage of Bausch Health Companies Inc. (NYSE: BHC) with a Buy rating and $35 price target.

Bausch Health Companies Inc. (NYSE: BHC) comes sixth on Icahn Capital’s investment portfolio.

As of the second quarter of 2021, Bausch Health Companies Inc. (NYSE: BHC) reported earnings per share of $0.97, beating estimates by $0.01. The company generated revenues amounting to $2.1 billion, up 26.20% year over year. On top of this, the share price for Bausch Health Companies Inc. (NYSE: BHC) has gained 34.35% year to date.

By the end of the second quarter of 2021, 45 hedge funds out of the 873 tracked by Insider Monkey held stakes in Bausch Health Companies Inc. (NYSE: BHC) worth roughly $3.99 billion. This is compared to 42 hedge funds in the previous quarter with a total stake value of approximately $4.07 billion.

Bausch Health Companies Inc. (NYSE: BHC) is the sixth most valuable investment made by Carl Icahn. Other investments include Newell Brands Inc. (NASDAQ: NWL), CVR Energy, Inc. (NYSE: CVI), Cheniere Energy, Inc. (NYSE: LNG), and Occidental Petroleum Corporation (NYSE: OXY).

Miller Value Partners recently released its first-quarter 2021 Investor Letter, in which the firm mentioned Bausch Health Companies Inc. (NYSE: BHC). Here’s what the firm had to say:

“Bausch Health Companies (BHC) climbed 55% during the period. Glenview (6% owner) sent a letter to the company in early February arguing the company has not acted to unlock shareholder value and urging the company to sell its eye care business. Shortly after, activist investor Carl Icahn disclosing a 7.83% stake in the company. The company responded to the filing saying that they remain committed to splitting the business into two parts, but are open to pursuing all opportunities. The company reported strong 4Q results with better-than-expected 2021 guidance. 4Q revenue came in at $2,213M slightly ahead of consensus of $2,165M and EPS of $1.34 beat consensus of $1.12. The company guided for 2021 revenue of $8.6-8.8B coming in ahead of expectations of $8.55B with EBITDA of $3.4-3.55B ahead of $3.46B estimated. The company announced the transition of Paul Herendeen to an advisory role to be succeeded by Sam Eldessouky, previously senior vice president, controller and chief accounting officer. Finally, the company announced the sale of Amoun Pharmaceutical for $740M, which was relatively in line with estimates and should help support debt reduction targets ahead of the planned spin-off of Bausch + Lomb eye care business.”

 

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Disclosure: None. Carl Icahn’s Stock Portfolio: Top 12 Picks is originally published on Insider Monkey.