360° Coverage : Billionaire Carl Icahn's Investment Fund Returned 31% In...

2 Updates
Billionaire Carl Icahn's Investment Fund Returned 31% In 2013

Billionaire Carl Icahn's Investment Fund Returned 31% In 2013

Jan 21 2014, 7:32am CST | by

By just about any measure, billionaire investor Carl Icahn had a great year in 2013. The stock of Icahn Enterprises returned 158% last year as investors embraced Icahn’s publicly-traded investment...

Filed under: news

 
 
 

38 weeks ago

Billionaire Carl Icahn's Investment Fund Returned 31% In 2013

Jan 21 2014, 7:32am CST | by

By just about any measure, billionaire investor Carl Icahn had a great year in 2013. The stock of Icahn Enterprises returned 158% last year as investors embraced Icahn’s publicly-traded investment vehicle, which not so long ago traded at a discount to its net asset value. With activist investing all the rage, the resurgence of Icahn in 2013 stretched from CNBC to the covers of Forbes and Time magazines, which called Icahn America’s most important investor.

But behind all his proxy fights, television outbursts and tweets, is Icahn’s ability to trade financial markets. Now in his late 70s, Icahn is on an amazing run. In 2013, Icahn’s investment fund returned 31%, according to a recent financial presentation put out by Icahn Enterprises. That’s just about in line with what the U.S. stock market performed last year, which is pretty impressive given that Icahn has said that his portfolio was hugely hedged last year. The vast majority of hedge fund managers were trounced by Icahn and the U.S. stock market last year and their defenders have loudly argued that recent hedge fund underperformance has been a product of prudent and, at times, contractually required hedging of portfolios during a raging bull market.

How did Icahn do it? He went into 2013 with Netflix as his third biggest holding. The stock soared by 283% from the start of the year until Icahn sold a big chunk of his holdings in late October. The stock of Icahn’s biggest holding going into 2013, Forest Laboratories, merely increased by 70% over the year. Icahn held onto most of his stake in Forest Labs throughout the year and it remains his second biggest position. Icahn played an important role in the ouster of Aubrey McClendon from Chesapeake Energy last year and the stock, which was Icahn’s second biggest holding in 2013, rose by 63%.

Can Icahn keep producing good returns in 2014? It’s very early, but Icahn seems to be off to a bit of a rough start. Herbalife, a stock that also helped Icahn’s investment fund tremendously last year, has tumbled by more than 10% in January. It was Icahn’s fourth biggest position going into 2014 with a value of $1.3 billion, a not insignificant chunk of Icahn’s investment fund. Apple, which is Icahn’s biggest single position by far, has dipped by more than 3% to start the year. His other big bets are Forest Labs, Chesapeake and Transocean.

But you would be crazy to bet against him. Home runs like Netflix might seem like luck, but as someone who once worked with Icahn told me recently, it can’t be luck when a guy like Icahn keeps on scoring for decades. After a tough 2008 that saw Icahn post big losses, Icahn has rebounded in a big way. He kicked all outside investors out of his hedge fund after the financial crisis and rebooted. The last five years for Icahn have been tremendous, a stretch that has seen his investment fund return 27% annually. Outside of billionaire hedge fund manager David Tepper, who has done even better, it’s tough to find that kind of investment performance amid big shot money managers over the last five years.

Source: Forbes Business

 
Update
2

7 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the workforce of 20,000 by 30 per ce ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

7 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and MH17" hit ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

'Time to rename medicines for mental health'
London, Oct 20 (IANS) In order to remove confusion for patients who could be prescribed drugs that appear to be unrelated to their condition, the world's major psychiatry organisations are proposing to completely change the terminology of the drugs used in mental disorders.
 
 
How to prevent brain damage after trauma
New York, Oct 20 (IANS) A treatment to prevent the body's immune system from killing brain cells can reduce the brain damage caused by head injuries, a study co-authored by an Indian origin researcher has found.
 
 
Heart attack ups depression risk in women
London, Oct 20 (IANS) Women are at a higher risk of developing anxiety and depression after a heart attack than men, new research shows.
 
 
Vitamin B12 could detoxify pollutants
London, Oct 20 (IANS) Looking at how certain organisms manage to lower the toxicity of pollutants, researchers have discovered that vitamin B12 could be the key to combating pollution.
 
 
 

Latest from the Network

1,074 new dengue cases in Chinese province
Beijing, Oct 18 (IANS) China's Guangdong province has reported 1,047 new cases of dengue fever, health authorities said Saturday. Six people have already died in Guangdong -- five in Guangzhou and one in adjacent...
Read more on Business Balla
 
Blake Lively 'always' wanted to be mum
Blake Lively has ''always'' wanted to be a mother. The 27-year-old actress is expecting her first child with husband Ryan Reynolds and she admits she's been dreaming of this moment since she was a youngster. Speaking...
Read more on Celebrity Balla
 
Kris Jenner 'torn apart' by Bruce's new relationship
Kris Jenner feels ''torn apart and angry'' that Bruce Jenner is dating her former assistant. The 58-year-old matriarch split from the 64-year-old Olympic gold medalist last October following 22-years of marriage but is...
Read more on Celebrity Balla
 
Cheryl Fernandez-Versini won't move to France
Cheryl Fernandez-Versini doesn't want to move to her husband's home country of France. The 'X Factor' judge, 31, who comes from Newcastle, is adamant she won't be relocating any time soon to suit her new spouse Jean-...
Read more on Celebrity Balla
 
Lance Bass sets wedding date
Lance Bass has set a date for his wedding. The former *NSYNC singer and his partner Michael Turchin, who have been dating for two-and-a-half years, are to tie the knot on December 20, 2014, a representative for the...
Read more on Celebrity Balla
 
Nepal avalanche toll reaches 39
Kathmandu, Oct 18 (IANS) At least 39 climbers died while hiking on a key Nepali route after it was hit by a major snowstorm and avalanches earlier this week, BBC reported Saturday citing officials. Over 350 stranded...
Read more on Politics Balla
 
Jake Gyllenhaal says society is complicit in 'nightcrawling'
Jake Gyllenhaal says almost everybody in society ought to relate to his new movie 'Nightcrawlers'. The eagerly-awaited film concerns those people who monitor police scanners and then race to crime scenes to film eye-...
Read more on Movie Balla
 
India eves look for first win in AFC U-16 qualifiers
Dhaka, Oct 18 (IANS) India will hope to register their first win of the 2015 Asian Football Confederation (AFC) Under-16 Women's Championship qualifiers when they take on hosts Bangladesh in a crucial encounter at the...
Read more on Sport Balla
 
Moyes mulling return to management
London, Oct 18 (IANS) Former Manchester United manager David Moyes said that he is ready to revive his managerial career six months after being sacked by the 'Red Devils'. "I am ready to return. I have enjoyed the...
Read more on Sport Balla
 
Ebola fears loom over Ghana hosting AFCON
Accra (Ghana), Oct 18 (IANS) The Ghana Medical Association (GMA) cautioned the government Saturday against hosting the 2015 African Cup of Nations (AFCON), despite a request by the Confederation of African Football (...
Read more on Sport Balla