Carl Icahn’s Icahn Capital LP has filed its latest 13F with the SEC, revealing the legendary activist’s equity positions at the end of 2014. Given Icahn’s modus operandi, which is to take large activist positions in companies, which requires immediate disclosure with the SEC, there is little revealed in the latest filing that wasn’t already known, despite Icahn making several moves in the fourth quarter. Nevertheless, let’s run down Icahn’s biggest and most active positions to end 2014.
Carl Icahn is one of the most well-known investors in the world, one whose presence or mere interest in a stock almost inevitably leads to a rise in value, as investors are keenly aware of the positive change Icahn can bring to a company’s governance and the stock’s shareholder value. Icahn, who celebrated his 79th birthday on Monday, founded what would become Icahn Capital in 1968, and his fund returned a strong 10.2% in the first half of 2014, which many other funds struggled. Icahn is ranked by Forbes as the 25th richest person in the world with a personal fortune of $23.4 billion.
For the second straight quarter, Apple Inc. (NASDAQ:AAPL) remains Icahn’s most valuable holding, after his stake in his holding company Icahn Enterprises LP (NASDAQ:IEP). His position in Apple remained unchanged during the quarter, with ownership of 52.76 million shares.
Apple Inc. (NASDAQ:AAPL) has enjoyed a tremendous run since the launch of the iPhone 6, soaring 32.97% since October 17. Icahn remains extremely bullish on Apple, and insists the company could be the first to attain a market cap of $1 trillion (it is currently valued at $745.58 billion); that is, if it continues to improve shareholder value, which Icahn is pressuring it to do. Apple Inc. (NASDAQ:AAPL) releases its Apple Watch later this year, and is rumored to be looking into building an electric car, which may or may not be self-driving.
Icahn made a minor addition to his eBay Inc (NASDAQ:EBAY) holding during the fourth quarter, adding 445,868 shares, a less than 1% addition to his position, which now boasts 46.27 million shares. Icahn was successful in convincing eBay to spin-off its PayPal division, and likely hopes for a sale of the company once it goes public.
On the other hand, Icahn is not looking for a sale of eBay Inc (NASDAQ:EBAY), and would like to see the online auction and retail giant turn around its struggling business. To that end, he was successful in having a representative appointed to its Board of Directors, who will seek to improve corporate governance. eBay recently announced weaker than anticipated fourth quarter results, and announced it would shed 2,400 jobs in early 2015.
One of Icahn’s biggest moves in the quarter was on Hertz Global Holdings, Inc. (NYSE:HTZ), as he increased his stake by 33% to 51.92 million shares. Icahn first initiated the position in August, and was successful in having three members appointed to the board. He also made known his intention to oust former CEO and Chairman Mark Frissora, who later stepped down for “personal reasons”. Frissora was replaced by an Icahn-approved CEO, John P. Tague, shortly afterwards.
The moves have yet to pay dividends in terms of shareholder value however, as Hertz Global Holdings, Inc. (NYSE:HTZ) shares are down 20% since the end of August, and 5.25% year-to-date. Barry Rosenstein of JANA Partners, another activist investor in the company with ownership of 34.82 million shares at the end of 2014, recently asserted shares would triple in value over the next year.
Navistar International Corp (NYSE:NAV) is another of Icahn’s active positions during the past quarter, as he added 1.94 million shares to his holding, which now totals 16.27 million shares. Icahn has held his position in Navistar since the second half of 2011, and it’s been one of the rare cases where an investment of his has missed the mark. Navistar is down a full 50% since the middle of 2011, and has remained mostly flat over the past two years.
While Navistar International Corp (NYSE:NAV) is making a slow turnaround, and saw some unexpected growth in its U.S operations last year, its revenue and EBITDA growth over the past three years are still negative, and its market share has eroded. Navistar is also in the midst of an SEC fraud investigation, and is alleged to be withholding documents in the affair.
Lastly is Manitowoc Company Inc (NYSE:MTW), which was Icahn’s only new position during the fourth quarter, and one that was disclosed near the end of the year. As Ralph V. Whitworth’s Relational Investors had done earlier, Icahn made his intentions clear to push the company to spin off its food division into a separate business. By the end of January, Manitowoc had agreed to the spin-off, and shares have jumped over 15% since. Icahn will seemingly maintain a long-term position in both new companies, as it’s been announced he will have a board seat on both the current company, as well as the spun-off food division’s new company, which is expected to be completed by the end of 2015.
Disclosure: None
