Insider Trading: Carl Icahn’s Icahn Capital Bought More $FDML

Carl Icahn’s Icahn Capital disclosed on November 22nd for its insider purchases in Federal Mogul Corp (FDML). Carl Icahn made three insider purchases for totally 165,040 shares from November 18 to 22. His average purchase price was about $13.75. After the transaction, Carl Icahn revealed 76.25 million shares in FDML in its 13D filing, corresponding to a 77.09% activist stake ownership. Carl Icahn initiated his FDML position during the second quarter, and he had nearly 76 million shares in the stock by the end of September. FDML is now trading at 13.27%, and has decreased by 36% year to date.

Carl Icahn

Other eleven hedge funds invested in FDML in the second quarter, with a comparatively smaller position. Christopher Pucillo’s Solus Alternative Asset Management took 2,947,104 in the stock, unchanged from Q1. George Soros’ Soros Fund Management cut its position by 62% and retained 475 thousand shares. Jim Simons’ Renaissance Technologies reduced its position by 52% to 119 thousand shares.

Carl Icahn is an American business magnate and legendary corporate raider. He began his career on Wall Street in 1961. In 2007, he founded Icahn Capital LP, which is a wholly-owned subsidiary of Icahn Enterprises L.P. Carl Icahn recently announced that he will be returning $1.76 Billion back to his investors. He will continue investing his own money. He is an excellent insider to imitate because his moves are usually bigger than an average hedge fund’s and he has to report them more promptly on 13D forms because he usually takes activist positions.

According to Yahoo! Finance, Federal-Mogul Corporation “supplies powertrain and safety technologies worldwide.” The company operates Powertrain Energy segment, Powertrain Sealing and Bearings segment, Vehicle Safety and Protection segment, Global Aftermarket segment. The company was “founded in 1899 and is headquartered in Southfield, Michigan. Federal-Mogul Corp. operates as a subsidiary of Icahn Enterprises, L.P.”