GuruFocus is very glad to announce that we have added billionaire investor Carl Icahn into our Guru Hall of Fame.
Carl Icahn is an activist investor. He takes minority stakes in public companies and typically pushes for change. He invests with three investment vehicles: the 7 billion hedge fund, Icahn Partners, American Real Estate Partners (AREP), a public traded private equity firm, and Icahn Management LP, a $2 billion hedge fund. GuruFocus tracks the third portfolio, which covers all the stocks owned by Icahn Partners. Mr. Icahn has a personal wealth of $17 billion.
Mr. Icahn buys beaten-down assets that nobody else wants, usually out of bankruptcy, then fix them up and sell them when they are back in favor. Regarding to his style, explains Icahn: The consensus thinking is generally wrong. If you go with a trend, the momentum always falls apart on you. So I buy companies that are not glamorous and usually out of favor. It is even better if the whole industry is out of favor.
The portfolio of Mr. Icahn’s that GuruFocus tracks is his hedge fund Icahn Management LP. The size of this portfolio is smaller than Icahn Partners, but it has all the stocks Icahn partners own and more. This portfolio tends to show Mr. Icahn’s new buys and sells earlier.
Regarding to adding Mr. Icahn into the List of Gurus, GuruFocus columnist Bill Spetrino (username: billytickets) said: “Icahn sees ‘value’ and helps the companies achieve their ‘true value’. I applaud and respect him.” User harison said : “Icahn definitely deserves a spot amongst the gurus.”
For more information on Mr. Icahn, read a very informative article by Fortune.