Carl Icahn’s Top Small-Cap Picks Include Herbalife Ltd. (HLF), CVR Energy Inc. (CVI)

Icahn’s equity stake in Herbalife Ltd. (NYSE:HLF) also remained unchanged during the most recent quarter. His position in the global nutrition company amounts to a number of 17.0 million shares valued at $726.92 million as of March 31. Herbalife’s share price has soared by more than 37% since the beginning of this year, which has certainly pleased investors like Icahn. Despite the fact that the company’s worldwide net sales of $1.11 billion dropped when compared to the net sales generated during the first quarter of the previous year, Herbalife’s chairman and CEO Michael Johnson declared that his company’s performance outperformed their own expectations. The decline in net sales was mainly caused by the detrimental effect of currency exchange rates. Other hedge fund managers with stakes in Herbalife include Allan Teh and Derek C. Schrier.

Icahn also stood pat concerning his holding of American Railcar Industries Inc. (NYSE:ARII)’s stock, which amounts to slightly more than 11.87 million shares valued at $590.36 million. American Railcar’s share price has experienced a surge of more than 11% throughout the last four weeks as analysts are more optimistic on the future performance of the company. American Railcar Industries has been seeing strong activity in earnings estimate revisions for the upcoming quarters, suggesting that the stock might be a great pick for investors. Moreover, the North American manufacturer of covered hopper and tank railcars has a P/E ratio of 10.45 and P/S of 1.44, both of which are lower than the industry average, implying that the company is relatively undervalued in relation to its competitors. Murray Stahl’s Horizon Asset Management also maintains a relatively large stake in American Railcar Industries Inc. (NYSE:ARII).

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