Billionaire Carl Icahn Is Becoming An Active Activist: Dell Inc. (DELL), Herbalife Ltd. (HLF), Transocean LTD (RIG)

Navistar International Corp (NYSE:NAV)

Icahn owns 11.8 million shares of Navistar, and his former employee and fellow activist Mark Rachesky recently disclosed that he owns a similar amount. He is joining his former mentor in the bid to change Navistar. So far, it’s working. Shares jumped 45% last week as the company says a return to profitability is near. The company also appointed Chief Operating Officer Troy Clarke as the new CEO. Icahn, who has waged a campaign against Navistar management, endorsed the new hire. After the news was announced, the value of Icahn’s stake in the company jumped from a value of $284 million to $414 million.

Netflix, Inc. (NASDAQ:NFLX)

Last quarter Icahn disclosed in SEC filings that he had bought 10 percent of Netflix at around $58 per share. It was public information, and we all could have bought then. Many people have doubted Netflix and were short, with the company looking at 15% short interest. Not Icahn. Icahn has Netflix as his sixth largest position and makes up nearly 4% of his hedge fund’s total value. In January the company reported a profit of 13 cents per share. Most analysts were expecting a 13 cent loss. The stock rose 24 percent after the news. Netflix is currently trading at $184.70. Imagine if you had bought when Icahn did? We all had the chance.

The Icahn Effect

The reason to invest alongside Icahn is that in many ways he fights for the little guy, the small shareholder. We don’t have Icahn’s immense wealth of over $20 billion. When he picks a fight with a company, they know he means business. He has the smarts and the firepower to get things done. The results speak for themselves with the money he has made for himself. It doesn’t hurt if he makes a little for us along the way. Icahn was the second highest earner among hedge funds for 2012, making an impressive $1.9 billion and returning 28% for his hedge fund (see other higher earners here).

The article Billionaire Carl Icahn Is Becoming An Active Activist originally appeared on Fool.com and is written by Marshall Hargrave.

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