CrossingBridge Advisors, an investment management firm, published its third-quarter 2022 investor letter – a copy of which can be downloaded here. The fund continues to find “money-good” bonds and leveraged loans that have attractive yields with potential for additional upside if anticipated events come to pass. On the other hand, the fund is avoiding industries that continue to struggle due to the impact of COVID. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.
In its Q3 2022 investor letter, CrossingBridge Advisors mentioned Icahn Enterprises L.P. (NASDAQ:IEP) and explained its insights for the company. Founded in 1987, Icahn Enterprises L.P. (NASDAQ:IEP) is a New York, New York-based conglomerate company with a $17.0 billion market capitalization. Icahn Enterprises L.P. (NASDAQ:IEP) delivered a 1.86% return since the beginning of the year, while its 12-month returns are up by 1.16%. The stock closed at $50.51 per share on December 12, 2022.
Here is what CrossingBridge Advisors has to say about Icahn Enterprises L.P. (NASDAQ:IEP) in its Q3 2022 investor letter:
“Icahn Enterprises LP, headed by investor Carl Icahn, is a diversified holding company with interests in investments, energy, automotive, food packaging, real estate, home fashion and pharmaceuticals. The investment segment derives revenues from gains and losses from investment transactions. Other operating segments, in most cases, are independently operated businesses obtained through a controlling interest.
As of 2Q22, Icahn Enterprises had Indicative Net Asset Value of $6.6 billion, consolidated debt of $7.1 billion and total liquidity, comprised of cash, investment funds and revolving credit availability, of $7.2 billion. Moreover, as of the end of 3Q22, it had an equity market capitalization of $16.0 billion. Thus, we have no concern regarding credit quality. We have traded in and out of the IEP 4.75% senior unsecured bond, due September 2024, since it was issued in February 2020.
In 3Q22, amidst the downdraft in the high yield market, we were able to purchase these bonds at a yield to maturity over 8.20%, very attractive for a 2-year note with such strong credit quality. Purchased at a discount, the bond would have an even higher annualized total return were the company to redeem it prior to September 15, 2023, when it becomes a current obligation. We expect to continue adding to this position opportunistically.”
Our calculations show that Icahn Enterprises L.P. (NASDAQ:IEP) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Icahn Enterprises L.P. (NASDAQ:IEP) was in 2 hedge fund portfolios at the end of the second quarter of 2022, compared to 2 funds in the previous quarter. Icahn Enterprises L.P. (NASDAQ:IEP) delivered a -2.30% return in the past 3 months.
In September 2022, we published an article that includes Icahn Enterprises L.P. (NASDAQ:IEP) in 5 Very High Yield Dividend Stocks to Check Out. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.
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Disclosure: None. This article is originally published at Insider Monkey.
