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Tiziano Frateschi
Tiziano Frateschi
Articles (2796)  | Author's Website |

Carl Icahn Buys AIG, Reduces Apple

A look at the activist investor's 4th quarter trades

Carl Icahn (Trades, Portfolio) is an activist investor. He takes minority stakes in public companies and typically pushes for change. The following were his most heavily weighted trades during the fourth quarter.

Icahn increased his stake in American International Group Inc. (AIG) by 3003.16%, and the deal had an impact of 8.6% on the portfolio.

AIG is engaged in insurance and insurance-related activities in the U.S. and abroad. In 2015, the company returned almost $12 billion of capital to shareholders in the form of share repurchases and dividends, and in the fourth quarter they repurchased another $2.5 billion of outstanding AIG common shares.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10 with weak returns of ROE of 4.45% and ROA of 0.91% that are under performing 75% of the companies in the Global Insurance - Diversified industry. Financial strength has a rating of 6 out of 10 with a cash-to-debt of 0.05.

Other notable guru shareholders are HOTCHKIS & WILEY with 1.24% of outstanding shares, followed by John Paulson (Trades, Portfolio) with 0.94%, First Pacific Advisors (Trades, Portfolio) with 0.75%, Steven Romick (Trades, Portfolio) with 0.64%, Richard Pzena (Trades, Portfolio) with 0.61% and Bill Nygren (Trades, Portfolio) with 0.59%.

Icahn acquired a new position Xerox Corp. (XRX) and the deal had an impact of 3.12% on the portfolio.

The company is engaged in business process and document management solutions. During the fourth quarter, the company delivered solid performance, and as a result of the progress the company made across both segments in optimizing its operating models, earnings were above its expectations.

GuruFocus gives the stock a profitability and growth rating of 5 out of 10 with weak returns of ROE of 4.69% and ROA of 1.88% that are under performing 55% of the companies in the Global Information Technology Services industry. Financial strength has a rating of 5 out of 10, with a cash-to-debt of 0.19 that is below the industry median of 9.50.

Other notable guru shareholders are Bernard Horn (Trades, Portfolio) with 0.04% of outstanding shares, followed by Manning & Napier Advisors with 0.04% and Dodge & Cox with 0.01%.

Icahn reduced his stake in Apple Inc. (AAPL) by 13.27% and the deal had an impact of -2.77% on the portfolio.

The company designs, manufactures, and markets mobile communication and media devices, personal computers and portable digital music players. Fourth quarter gross margin was 40.1% compared to 39.9% in the year-ago quarter, and international sales accounted for 66% of the quarter’s revenue.

GuruFocus gives the stock a profitability and growth rating of 9 out of 10 with strong returns of ROE of 42.94% and ROA of 19.47% that are over performing 97% of the companies in the Global Consumer Electronics industry. Financial strength has a rating of 6 out of 10, with a cash-to-debt of 0.61 that is below the industry median of 1.25.

Other notable shareholders among the gurus are Ken Fisher (Trades, Portfolio) with 0.2% of outstanding shares, followed by Chase Coleman (Trades, Portfolio) with 0.19%, Pioneer Investments (Trades, Portfolio) with 0.14%, Jeremy Grantham (Trades, Portfolio) with 0.13%, David Einhorn (Trades, Portfolio) with 0.11%, David Rolfe (Trades, Portfolio) with 0.09% and Jim Simons (Trades, Portfolio) with 0.08%.

The gurus raised his stake in Hertz Global Holdings Inc. (HTZ) by 22.70% and the deal had an impact of 0.57% on the portfolio.

The company is engaged in car and truck rental and leasing and equipment rental business. It operates its car rental business through the Hertz, Dollar, Thrifty and Firefly brands. During the third quarter, net income and diluted EPS had an increase of 59% and 63% from the same quarter of a year before. Consolidated total revenue decreased 5% year-over-year.

GuruFocus gives the stock a profitability and growth rating of 5 out of 10 with negative returns of ROE of -1.62% and ROA of -0.16% that are under performing 79% of the companies in the Global Rental & Leasing Services industry. Financial strength has a rating of 6 out of 10, with a cash-to-debt of 0.03 that is below the industry median of 0.73.

Larry Robbins (Trades, Portfolio) is the largest guru shareholder with 5.22% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 1.03%, Columbia Wanger (Trades, Portfolio) with 0.92%, Mario Gabelli (Trades, Portfolio) with 0.9%, Steven Cohen (Trades, Portfolio) with 0.23%, Manning & Napier Advisors with 0.22% and Murray Stahl (Trades, Portfolio) with 0.03%.

Icahn increased his stake in Cheniere Energy Inc. (LNG) by 14.48% and the deal had an impact of 0.52% on the portfolio.

The company is engaged in LNG-related businesses. The company owns and operates the Sabine Pass LNG terminal in Louisiana through its ownership interest in and management agreements with Cheniere Energy Partners L.P.

GuruFocus gives the stock a profitability and growth rating of 2 out of 10 with negative ROA of -5.58% that is under performing 89% of the companies in the Global Oil & Gas Midstream industry. Financial strength has a rating of 5 out of 10, with a cash-to-debt of 0.09.

The company’s largest shareholder among the gurus is Seth Klarman (Trades, Portfolio) with 15.71% of outstanding shares, followed by Seth Klarman (Trades, Portfolio) with 11.05%, Andreas Halvorsen (Trades, Portfolio) with 6.75%, Steve Mandel (Trades, Portfolio) with 5.33%, John Griffin (Trades, Portfolio) with 2.29% and Louis Moore Bacon (Trades, Portfolio) with 0.02%.

Icahn raised his stake in Icahn Enterprises LP (IEP) by 2.17% and the deal had an impact of 0.52% on the portfolio.

The company is a diversified holding company owning subsidiaries engaged in the following continuing operating businesses: Investment, Automotive, Energy, Metals, Railcar, Gaming, Food Packaging, Real Estate and Home Fashion.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with negative returns of ROE of -9.64% and ROA of -1.49% that are under performing 76% of the companies in the Global Conglomerates industry. Financial strength has a rating of 4 out of 10, with a cash-to-debt of 1.29 that is few below the industry median of 1.27.

Murray Stahl (Trades, Portfolio) is the largest guru shareholder with 2.79% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.03%.

Icahn bought 6,558,083 shares in Pep Boys - Manny Moe & Jack (PBY) and the deal had an impact of 0.41% on the portfolio.

The company together with its subsidiaries offers automotive service, tires, parts and accessories. Third quarter sales decreased 1.8% from the same quarter of a year before, and net earnings was 2 cents per share as compared to a net loss of 3 cents per share recorded in the third quarter of fiscal 2014.

GuruFocus gives the stock a profitability and growth rating of 5 out of 10 with negative returns of ROE of -1.61% and ROA of -0.57% that are under performing 84% of the companies in the Global Auto Parts industry. Financial strength has a rating of 6 out of 10, with a cash-to-debt of 0.37 that is below the industry median of 0.54.

Other notable shareholders of the company among the gurus are Mario Gabelli (Trades, Portfolio) with 12.34% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 2.4% and Joel Greenblatt (Trades, Portfolio) with 0.72%.

The gurus reduced his stake in Tegna Inc. (TGNA) by 14.67% and the deal had an impact of -0.25% on the portfolio.

The company is an international media and marketing solutions company.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with strong returns of ROE of 18.94% and ROA of 5.45% that are over performing 80% of the companies in the Global Broadcasting - TV industry.

Diamond Hill Capital (Trades, Portfolio) is the largest guru shareholder with 3.43% of outstanding shares, followed by John Rogers (Trades, Portfolio) with 3.01%, Manning & Napier Advisors with 2.5%, Joel Greenblatt (Trades, Portfolio) with 0.3%, John Keeley (Trades, Portfolio) with 0.19%, Pioneer Investments (Trades, Portfolio) with 0.16% and Jeremy Grantham (Trades, Portfolio) with 0.05%.

Icahn raised his stake in Freeport-McMoRan Inc. (FCX) by 4%, and the deal had an impact of 0.09% on the portfolio.

The company deals in the mining of copper, gold and molybdenum. It has organized its operations into six primary divisions - North America copper mines, South America mining, Indonesia mining, Africa mining, Molybdenum mines and U.S. oil and gas operations.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with negative returns of ROE of -91.78% and ROA of -22.94% that are under performing 88% of the companies in the Global Copper industry. Financial strength has a rating of 5 out of 10, with a cash-to-debt of 0.01 that is below the industry median of 2.13.

Other notable shareholders of the company among the gurus are Mario Gabelli (Trades, Portfolio) with 0.36% of outstanding shares, followed by David Tepper (Trades, Portfolio) with 0.31%, John Burbank (Trades, Portfolio) with 0.24% and Chris Davis (Trades, Portfolio) with 0.04%.

About the author:

Tiziano Frateschi
You can read about me on www.theextraincome.info, which gives suggestions on position trading.

Visit Tiziano Frateschi's Website


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Comments

asawhneyy
Asawhneyy - 5 years ago    Report SPAM

What is happening to IEP, discussion of IEP is warranted, not his holdings only.

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