5 Best Stocks to Buy and Hold According to Billionaire Carl Icahn

1. Icahn Enterprises L.P. (NASDAQ:IEP)

Number of Hedge Fund Holders: 3

Icahn Capital LP’s Stake Value: $15,512,877,000

Icahn Enterprises L.P. (NASDAQ:IEP), via its subsidiary companies, engages in different businesses including investment, energy, automotive, food packaging, real estate, home fashion, and pharmaceuticals. In Q1 2023, Carl Icahn’s hedge fund owned nearly 300 million shares of Icahn Enterprises L.P. (NASDAQ:IEP), worth $15.5 billion and representing 70.42% of the total 13F securities. 

On May 18, Icahn Enterprises L.P. (NASDAQ:IEP) declared a $2.00 per share quarterly dividend, in line with previous. The dividend is payable on June 30, to shareholders of record on May 22. 

According to Insider Monkey’s fourth quarter database, 3 hedge funds were bullish on Icahn Enterprises L.P. (NASDAQ:IEP), compared to 2 funds in the prior quarter.

Here is what CrossingBridge Advisors has to say about Icahn Enterprises L.P. (NASDAQ:IEP) in its Q3 2022 investor letter:

“Icahn Enterprises LP, headed by investor Carl Icahn, is a diversified holding company with interests in investments, energy, automotive, food packaging, real estate, home fashion and pharmaceuticals. The investment segment derives revenues from gains and losses from investment transactions. Other operating segments, in most cases, are independently operated businesses obtained through a controlling interest.

As of 2Q22, Icahn Enterprises had Indicative Net Asset Value of $6.6 billion, consolidated debt of $7.1 billion and total liquidity, comprised of cash, investment funds and revolving credit availability, of $7.2 billion. Moreover, as of the end of 3Q22, it had an equity market capitalization of $16.0 billion. Thus, we have no concern regarding credit quality. We have traded in and out of the IEP 4.75% senior unsecured bond, due September 2024, since it was issued in February 2020.

In 3Q22, amidst the downdraft in the high yield market, we were able to purchase these bonds at a yield to maturity over 8.20%, very attractive for a 2-year note with such strong credit quality. Purchased at a discount, the bond would have an even higher annualized total return were the company to redeem it prior to September 15, 2023, when it becomes a current obligation. We expect to continue adding to this position opportunistically.”

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