Insider Trading: Carl Icahn Increased His Position in $ARII

Carl Icahn filed a Form 4 on October 6th that he has increased his position in American Railcar Industries, Inc. (ARII) by 17,900 shares. According to Insider Monkey’s hedge fund data base, Carl Icahn was ARII’s chairman of the board and his Icahn Capital was ARII’s principal beneficial shareholder. The firm reported 11.56 million shares of ARII in its 13F filing in the second quarter, so the purchase on October 4th was just a small adjustment. Carl Icahn bought 17,900 shares at $15.01 and reported them under Icahn Enterprises L.P. Since there was no other transaction between Carl Icahn and ARII after Q2, Carl Icahn now controls 11.85 million shares of ARII, including 285 thousand shares under Icahn Enterprises Holdings, and 11.56 million shares under IEH ARI Holdings.

Hedge Fund Strategies

In the second quarter, totally eleven hedge funds had ARII in their portfolios. Alexander Mitchell’s Scopus Asset Management owned 379 thousand shares, and Jim Simons’ Renaissance Technologies had 216 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.

American Railcar Industries, Inc. is a railroads company which specializes in designing, manufacturing and selling hopper and tank railcars. It has Manufacturing Operations segment and Railcar Services segment. The company was founded in 1988. It operates as a subsidiary of Icahn Enterprises Holdings as of January 15th, 2010.