Icahn Sells Shares In Holding Co.

Dec 11 2013 | 12:04pm ET

Carl Icahn closed his hedge fund and returned outside capital to investors more than two years ago. But that doesn't mean investors can't get a piece of the legendary corporate raider, who at 77 may be having the best year of his storied career.

Icahn doesn’t manage a hedge fund anymore, per se, but—as anyone who's seen this week's cover of Time magazine, with him on the cover, knows—he's not exactly retired. And, on Monday night, he sold 2 million shares of his holding company, Icahn Enterprises, raising $290 million.

Icahn Enterprises depositary units are publicly-traded, and have returned an impressive 200% this year—better even than Icahn's investment rate of return of 27.7%. But most of the company's shares, 89%, are owned by Icahn himself, which he believes has led to their trading at a discount to their net-asset value, as well as restricting liquidity and analyst coverage.

Icahn has been adding to the number of publicly-traded shares throughout the year; Monday's was the third equity offering held by Icahn Enterprises this year. All told, 6.6 million shares of the company have been added to public markets this year—although you would have done better buying the now-$116 stock for $63 in February or $75.54 in June. Icahn himself has sold none of his stake.


In Depth

Q&A: Schroders’ Forest Discusses Multi-Asset Investments On Eve Of U.S. Launch

Jul 17 2014 | 8:05am ET

Global investment manager Schroders has $446 billion in assets under management, $...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

Common Risk Parity Misperceptions

Jul 16 2014 | 11:02am ET

Over the past few years, risk parity has become a component of most investors’...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note