Wednesday, 24 August 2016
Last updated 4 hours ago
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.