U.S. markets closed
  • S&P 500

    3,821.35
    -20.59 (-0.54%)
     
  • Dow 30

    31,802.44
    +306.14 (+0.97%)
     
  • Nasdaq

    12,609.16
    -310.99 (-2.41%)
     
  • Russell 2000

    2,202.98
    +10.77 (+0.49%)
     
  • Crude Oil

    64.75
    -1.34 (-2.03%)
     
  • Gold

    1,677.80
    -20.70 (-1.22%)
     
  • Silver

    25.16
    -0.13 (-0.50%)
     
  • EUR/USD

    1.1850
    -0.0075 (-0.63%)
     
  • 10-Yr Bond

    1.5960
    +0.0420 (+2.70%)
     
  • GBP/USD

    1.3818
    -0.0010 (-0.07%)
     
  • USD/JPY

    108.9200
    +0.5380 (+0.50%)
     
  • BTC-USD

    51,616.41
    +1,545.93 (+3.09%)
     
  • CMC Crypto 200

    1,045.29
    +21.08 (+2.06%)
     
  • FTSE 100

    6,719.13
    +88.61 (+1.34%)
     
  • Nikkei 225

    28,743.25
    -121.07 (-0.42%)
     

How To Invest Like Carl Icahn

  • Oops!
    Something went wrong.
    Please try again later.
Chris Katje
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.

Carl Icahn is one of the most noted activist investors of the last 50 years.

About Carl Icahn: Carl Icahn runs the Icahn Enterprises (NASDAQ: IEP) conglomerate, which is a holding company owning assets in the railway, casino, auto parts and mining industries.
Icahn is the 39th richest person in the world with a net worth of $14.6 billion, according to Forbes.
Icahn’s investment strategy has produced strong returns for him and his holding company using several key strategies.

Investment Strategy: Icahn is an activist investor who accumulates large positions in companies he believes are undervalued. Icahn looks at companies that are trading with poor price-to-earnings ratios or book values that exceed market values.
“My investment philosophy, generally, with exceptions, is to buy something when no one wants it,” Icahn said.
Icahn normally becomes the largest shareholder of the company so he can push through changes.

Activist Investor Strategy: Among the moves that Icahn makes in the companies he takes stakes in are hostile takeovers, pushing for mergers and pushing to spin off or sell assets.
Icahn pushes for changes to the board of directors through his large ownership positions. He normally nominates a whole new slate of directors and then pushes for more changes.
Icahn is considered a short-term trader, as he seeks to unlock shareholder value and then sell his position when he has realized a gain.

Current Activist Trade: Icahn is the largest shareholder of Xerox Holdings (NYSE: XRX) and is pushing for the company to merge with HP Inc (NYSE: HPQ). He also owns a stake in HP.
Related Link: Q3 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolios
 

See more from Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.