Icahn Enterprises Reports 10.3% Loss in 3rd Quarter

GuruFocus.com
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Carl Icahn (Trades, Portfolio)'s, Icahn Enterprises L.P. (IEP) reported its third quarter results on Nov. 5. As a diversified conglomerate, the firm has ownership over numerous holding companies, as well as a large investment portfolio that reported total assets of $33 billion for the third quarter.


After a volatile quarter that saw the Dow Jones Industrial Average down 7.58%, Icahn Enterprises' investment fund reported a loss of 10.3%. Year-to-date the fund is down 2.8% with significant losses posted from energy companies Seventy Seven Energy (SSE) and Chesapeake Energy (CHK), down 74% and 62%.

Total investment return from the firm's subsidiaries was also down for the quarter with a net asset value loss of 11%. The firm saw the greatest market value losses from Federal-Mogul (FDML) and American Railcar Industries (ARII), down 40% and 26%. Meanwhile, substantial gains were reported from Tropicana (TPCA) and CVR Energy (CVI), up 20.6% and 9.1%.

Overall, the firm reported total revenue of $3.2 billion with a net loss of $440 million resulting in a loss of $3.40 per depositary unit. Revenue was down 27% from the year-ago quarter. Net income and EPS were also lower. Net income was down $85 million from the comparable quarter, while EPS fell 50 cents per depositary unit.

At the end of the third quarter, Icahn reported the greatest majority of his investment fund holdings in the technology sector at 24.5% with 20% of the portfolio in Apple (AAPL). In the firm's most recent trading, it has actively been taking bets on the energy sector. Over the past two months, Icahn has bought 9.2 million shares of Cheniere Energy (LNG), upping his total stock position in energy to 16% with 4% now invested in Cheniere Energy with an approximate value of $1.3 billion.

This article first appeared on GuruFocus.


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