It’s no secret that institutional investment managers must regularly file regulatory updates on the assets included in their portfolios (called 13F filings).
Regulatory filings, among other eye-openers, give the public a chance to see a billionaire’s investment portfolio and how it’s put together. They also show average investors what the smart money thinks about stocks, funds and the market in general, though that glimpse is somewhat after the fact.
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Billionaire Carl Icahn’s portfolio provides a good example of the “sneak peek” experience, and its high concentration in a relatively low number of stocks tells investors at least two things, from appearances: Icahn isn’t afraid to invest in himself, and he likes to make decisive moves in the market.
Icahn is a famously savvy investor who runs investment firm Icahn Capital Management LP and serves as chairman of publicly traded diversified holding company Icahn Enterprises LP (ticker: IEP). Icahn favors big dividends and loves going sector shopping. He’s into energy companies, in addition to his huge stake in Icahn Enterprises itself. He also thrives on being an activist investor who can steer companies into takeover territory or find hidden value that other big investors might have missed.
Aside from a few big purchases among his top seven holdings in the first quarter, Icahn bought a new position in JetBlue Airways Corp. (JBLU) worth $131.5 million. JBLU now has a weighting of 1.1% of the Icahn portfolio. Icahn sold out of holdings FirstEnergy Corp. (FE), Newell Brands Inc. (NWL) and Conduent Inc. (CNDT).
If you’re wondering what was else was going on in Icahn’s $11.9 billion portfolio as of the end of the first quarter of 2024, here’s a look under the hood:
| Stock | Portfolio weight | Market value of shares* |
| Icahn Enterprises LP (IEP) | 55.1% | $6.8 billion |
| CVR Energy Inc. (CVI) | 19.3% | $2.4 billion |
| Southwest Gas Holdings Inc. (SWX) | 6.8% | $839.2 million |
| Occidental Petroleum Corp. Warrants (OXYWS.WI) | 5.8% | $710.5 million |
| Bausch Health Cos. Inc. (BHC) | 3.0% | $368.4 million |
| International Flavors & Fragrances Inc. (IFF) | 2.6% | $322.5 million |
| CVR Partners LP (UAN) | 2.5% | $305.9 million |
*Source: WhaleWisdom, as of March 31 or most recent regulatory filing.
Icahn Enterprises LP (IEP)
Portfolio weight: 55.1% Market value of shares: $6.8 billion
Icahn Enterprises is known for its power-packed dividend yield, which currently stands at 22.9%. On June 25, Icahn added 20.4 million shares of IEP, boosting his holdings by 5.3% to a total market value of $6.8 billion, tightening his grip on a core investment.
Based in Sunny Isles Beach, Florida, Icahn Enterprises operates in eight diverse industries but is most highly concentrated in automotive, energy and real estate. IEP also either owns outright or has taken big positions in a diverse array of other companies.
With his hands firmly on the steering wheel, the activist investor has major influence over the companies within the Icahn portfolio. That alone makes him one of the most powerful investors on Wall Street.
CVR Energy Inc. (CVI)
Portfolio weight: 19.3% Market value of shares: $2.4 billion
CVR Energy is the second-largest position in the Icahn portfolio, representing 19.3% of its holdings.
The Icahn team didn’t buy or sell out of its position in CVI in the first quarter of 2024, but the portfolio benefited anyway, as CVI’s share price rose from about $29 to $35.
CVR Energy largely beat analyst estimates for Q2 2024 performance, though net income and revenues were down significantly for the quarter. Company officials pointed to a refinery fire and lower refinancing margins, both of which were deemed temporary.
Industry analysts seem concerned, however. Scotiabank’s Paul Cheng gave CVI a “sell” rating with a price target of $24 on July 30. JPMorgan’s Phil Gresh listed CVI as “underweight” in early July, with a target share price of $26 (the stock is currently trading at $28.73 as of the market close on July 30).
That said, CVR Energy does fit the bill as an Icahn dividend stock, with a forward yield of 7%.
Southwest Gas Holdings Inc. (SWX)
Portfolio weight: 6.8% Market value of shares: $839.2 million
Southwest Gas Holdings is next on Icahn’s list. It is another energy play that gives investors what they want: solid overperformance and a sterling dividend yield. SWX shares are up 18.5% in 2024 as of July 30, and the dividend stands at 3.4%.
The Las Vegas-based energy company specializes in natural gas operations and utility infrastructure services. There’s an element of reliability with Southwest Gas, as it’s historically been a favored provider of gas to homes and businesses since 1931, giving SWX a robust long-term growth profile that appeals to investors.
Icahn now owns 11 million shares of the stock, which he first began buying in the third quarter of 2021. Icahn engaged in a proxy battle involving Southwest Gas in 2022, and he doubled his stake as the dust settled. SWX has returned about 18% since his initial purchase.
Occidental Petroleum Corp. Warrants (OXYWS.WI)
Portfolio weight: 5.8% Market value of shares: $710.5 million
Icahn also holds stock warrants in Occidental Petroleum Corp. (OXY). Essentially, stock warrants are derivative contracts that give the warrant owner the right to buy or sell a company’s stock within a specific time frame and at a specific price. Like most derivatives, warrants come with significant risk, but Occidental Petroleum, a Houston-based oil and gas provider, has some influential backers.
OXY shares are up less than 1% year to date as of July 30, and the company recently announced the sale of $970 million in assets to reduce debt and stabilize its financial picture. Occidental Petroleum sees the move as a big part of its strategy to divest between $4.5 billion and $6 billion to help pay for new company acquisitions.
But ironically, Occidental is fellow billionaire Warren Buffett’s favorite energy play. So, the odds are good that Icahn sees OXY shares moving upward, even though the stock has lost about 12% since early April, partially due to a mixed Q1 earnings report. At the end of the first quarter, OXY composed 5.8% of the Icahn portfolio and had a market value of $710.5 million.
Bausch Health Cos. Inc. (BHC)
Portfolio weight: 3% Market value of shares: $368.4 million
There’s no sugarcoating this health care stock’s downward trend, but there seems to be a good outlook for an immediate bounce-back. Performance has been abysmal in 2024, with shares down 25.7% year to date as of July 30 and down 18.6% in the last two weeks of July alone.
Bad luck and shaky journalism are likely behind Bausch Health’s most recent share setback. Reports implying the company was going bankrupt and that one of the company’s drugs was killing dogs were unfounded, and shareholders paid the price.
Consequently, BHC shares may rebound sooner than one may think. In a recent research note, Wall Street analyst firm Jefferies reported that it anticipates “solid results” in the company’s Q2 2024 earnings statement. In late July, Jefferies maintained a “buy” call on the company’s stock with a $13-per-share price target. BHC stock is currently trading at $5.96 per share as of the July 30 market close.
The Icahn portfolio owned 34.7 million shares of BHC at last report, with a market value of $368.4 million. He first bought shares in the fourth quarter of 2020.
International Flavors & Fragrances Inc. (IFF)
Portfolio weight: 2.6% Market value of shares: $322.5 million
This materials play was a major “buy” for the Icahn portfolio in the first quarter of the year, as he added 3.1 million shares, representing a massive 481.8% uptick in share ownership from 2023 to 2024.
The New York-based company manufactures and supplies flavors and fragrances widely used in the food, beverage, personal care and household products industries.
The stock trades at $99.64 per share as of July 30, with an average analyst target price of $105. Some analysts are going a lot higher with their price calls, though. Stifel analyst Mark Astrachan recently bumped IFF up to “buy” from “hold” with a price target of $115 per share. That’s up from $95 per share in Astrachan’s previous note on IFF. He believes estimates of single-digit growth in company sales are low for 2024 to 2025. That compares with sales declines in the last few quarters.
The Icahn portfolio holds 3.8 million shares with a market value of $322.5 million.
CVR Partners LP (UAN)
Portfolio weight: 2.5% Market value of shares: $305.9 million
Icahn owns 3.9 million shares of CVR Partners, with a market value of $305.8 million.
The Icahn team snapped up a new position in UAN shares in the first quarter of the year at an average share price of $78.59. The stock has remained virtually unchanged since Q1, with a July 30 share price of $78.54.
The Sugarland, Texas, holding company operates in the renewable fuels and nitrogen fertilizer sector. Its primary products include ammonia and urea ammonium nitrate fertilizers. CVR serves industrial and agricultural customers in the South and Midwest.
In true Icahn fashion, CVR Partners offers a big dividend yield of 11.8%, but recent earnings figures have waned, with net income down from $60 million in the second quarter of 2023 to $26 million in Q2 2024. Product output seems stable, but CVR has seen a 15% overall decline in product prices and a 26% downward slide in ammonia prices.
CVR will need to bide its time until the pricing picture for its mainstay product brightens. Icahn, a previous owner of CVR shares (he bought big in 2012), will likely ride out this rough patch.
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7 Top Carl Icahn Stocks in 2024 originally appeared on usnews.com
