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Carl Icahn Buys Energen, VMware in 2nd quarter

- By Tiziano Frateschi

Carl Icahn (Trades, Portfolio), the founder of Icahn Enterprises, is known as a "corporate raider" for taking aggressive activist positions in companies. During the second quarter, he invested in the following stocks.


The guru increased his stake in Icahn Enterprises LP (IEP) by 5.38%, impacting the portfolio by 2.5%.

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The company provides diversified business services. It has a market cap of $14.1 billion and an enterprise value of $19.43 billion.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. The return on equity of 26.86% and return on assets of 4.25% are outperforming 81% of companies in the Global Conglomerates industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 1.22 is below the industry median of 1.66.

Another notable guru shareholder of the company is Murray Stahl (Trades, Portfolio) with 1.24% of outstanding shares.

Icahn established a new position in Energen Corp. (EGN), buying 5,196,121 shares. The trade had an impact of 1.57% on the portfolio.

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The domestic oil and gas producer has a market cap of $7.62 billion and an enterprise value of $8.45 billion.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. The return on equity of 12.69% and return on assets of 8.52% are outperforming 77% of companies in the Global Oil and Gas E&P industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.66 is above the industry median of 0.54.

Another notable guru shareholder of the company is Daniel Loeb (Trades, Portfolio) with 1.38% of outstanding shares, followed by John Paulson (Trades, Portfolio) with 0.77% and Jim Simons (Trades, Portfolio) with 0.3%.

The investor bought 2,275,069 shares of VMware Inc. (VMW). The trade had a 1.38% impact on the portfolio.

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The company, which provides virtualization and cloud infrastructure solutions, has a market cap of $61 billion and an enterprise value of $51.94 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 17.78% and return on assets of 7.73% are underperforming 68% of companies in the Global Software - Infrastructure industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 3.14 is below the industry median of 4.27.

Simons is the largest shareholder of the company among the gurus with 1.3% of outstanding shares, followed by Dodge & Cox with 0.77% and PRIMECAP Management (Trades, Portfolio) with 0.42%.

The guru established a new position in AmTrust Financial Services Inc. (AFSI), buying 18,418,732 shares. This trade impacted the portfolio by 1.11%.

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The property and casualty insurance company has a market cap of $2.86 billion and an enterprise value of $4.14 billion.

GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of 2.89% and return on assets of 0.66% are underperforming 88% of companies in the Global Insurance - Property and Casualty industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.58 is below the industry median of 2.82.

Another notable guru shareholder of the company is Simons with 0.2% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio) with 0.05%.

Icahn acquired 2,384,002 shares of Dell-VMWare Tracking Stock (DVMT), impacting the portfolio by 0.84%.

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The tracking stock has a market cap of $19.02 billion and an enterprise value of $23.87 billion.

GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of 9.22% and return on assets of 5.45% are outperforming 58% of companies in the Global Software - Infrastructure industry. Its financial strength is rated 6 out of 10.

Dodge & Cox is the largest guru shareholder of the company with 7.93% of outstanding shares, followed by Paul Singer (Trades, Portfolio) with 4.34% and Simons with 2.78%.

The guru opened a new position in Cigna Corp. (CI), buying 503,380 shares. The trade had an impact of 0.35% on the portfolio.

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The health insurance company has a market cap of $45.5 billion and an enterprise value of $46.95 billion.

GuruFocus gives the company a profitability and growth rating of 4 out of 10. While the return on equity of 17.85% is outperforming the sector, the return on assets of 4.09% is underperforming 57% of companies in the Global Health Care Plans industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.69 is below the industry median of 1.15.

With 4.28% of outstanding shares, Dodge & Cox is the company's largest guru shareholder, followed by the Vanguard Health Care Fund (Trades, Portfolio) with 1.57% and Barrow, Hanley, Mewhinney & Strauss with 0.81%.

Disclosure: I do not own any stocks mentioned in this article.

This article first appeared on GuruFocus.