Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of September. At Insider Monkey, we follow over 700 of the best-performing investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is Icahn Enterprises LP (NASDAQ:IEP), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
Hedge fund interest in Icahn Enterprises LP (NASDAQ:IEP) shares’ was flat at the end of the last quarter. This is usually a negative indicator. At the end of this article, we will also compare Icahn Enterprises LP (NASDAQ:IEP) to other stocks including Credicorp Ltd. (USA) (NYSE:BAP), Wyndham Worldwide Corporation (NYSE:WYN), and PVH Corp (NYSE:PVH) to get a better sense of its popularity.
In the financial world, there are tons of indicators investors put to use to appraise their holdings. Two of the best indicators are hedge fund and insider trading activity. Our experts have shown that, historically, those who follow the top picks of the top investment managers can outclass the market by a superb amount (see the details here).
With all of this in mind, we’re going to take a gander at the fresh action surrounding Icahn Enterprises LP (NASDAQ:IEP).
What have hedge funds been doing with Icahn Enterprises LP (NASDAQ:IEP)?
At the end of the third quarter, a total of 6 of the hedge funds tracked by Insider Monkey were long this stock, flat over the last quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Icahn Capital LP, managed by Carl Icahn, holds the biggest position in Icahn Enterprises LP (NASDAQ:IEP). Icahn Capital LP has a $7.68 billion position in the stock, comprising 27.5% of its 13F portfolio. Coming in second is Murray Stahl of Horizon Asset Management, with a $253.7 million position; the fund has 4.6% of its 13F portfolio invested in the stock. Remaining professional money managers that are bullish encompass Ken Griffin’s Citadel Investment Group, Matthew Hulsizer’s PEAK6 Capital Management and Roger Ibbotson’s Zebra Capital Management.
Seeing as Icahn Enterprises LP (NASDAQ:IEP) has experienced a declining sentiment from the smart money, logic holds that there is a sect of hedgies that decided to sell off their positions entirely last quarter. Interestingly, Citadel Investment Group dropped the biggest investment of all the hedgies monitored by Insider Monkey, totaling close to $0.1 million in stock. Gavin Saitowitz and Cisco J. del Valle’s fund, Springbok Capital, also said goodbye to its stock, about $17,000 worth of shares. These bearish behaviors are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s go over hedge fund activity in other stocks similar to Icahn Enterprises LP (NASDAQ:IEP). We will take a look at Credicorp Ltd. (USA) (NYSE:BAP), Wyndham Worldwide Corporation (NYSE:WYN), PVH Corp (NYSE:PVH), and L-3 Communications Holdings, Inc. (NYSE:LLL). This group of stocks’ market caps is similar to Icahn Enterprises LP (NASDAQ:IEP)’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see, these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $727 million. That figure was $7.93 billion in Icahn Enterprises LP (NASDAQ:IEP)’s case. PVH Corp (NYSE:PVH) is the most popular stock in this table. On the other hand, Credicorp Ltd. (USA) (NYSE:BAP) is the least popular one with only 18 bullish hedge fund positions. Compared to these stocks, Icahn Enterprises LP (NASDAQ:IEP) is even less popular than Credicorp Ltd. (USA) (NYSE:BAP). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.