Investing

Carl Icahn significantly cut his stake in one company

Carl Icahn

Carl Icahn recently sold a significant stake in Cheniere Energy, the second-largest producer of liquified natural gas in the world. 

In the last quarter of 2022, Icahn Enterprises (IE) offloaded 1.1 million shares of the company worth $166 million. This sale reduced their stake in Cheniere Energy by 52%.

Icahn built his $18.6 billion net worth by buying significant positions in companies that he thought were run poorly and calling for changes to the management structure.

IE bought a significant stake in Cheniere Energy in 2015. Icahn was quoted by TipRanks as saying that Icahn Enterprises was instrumental in appointing a new CEO of the company who “unlocked the value of a fantastic asset”.

The share price of Cheniere has more than doubled since IE acquired over 30 million shares of the company in 2015.

ExxonMobil, a competitor in the natural gas industry, has also seen a rise in its share price since 2015, but only by around 35%.

IE has been selling shares in Cheniere since Q2 2018, perhaps deciding to take profits after the management change has delivered value to the company.

In the last quarter, IE also reduced its stake in equipment rental firm HERC holdings.

In addition to buying back some of their own shares, IE bought a larger stake in two companies – Occidental Petroleum and Crown Holdings.

The shares that Icahn Enterprises bought and sold in Q4 2022 are listed below:

  • Cheniere Energy (Reduce by 52.64%) – The second largest natural gas producer in the world, with headquarters in Houston, Texas.
  • HERC Holdings (Reduce by 8.11%) – An equipment rental firm that operates in the United States of America and Canada.
  • Crown Holdings (Increase by 0.01%) – US metal can manufacturing company.
  • Icahn Enterprises (Increase by 3.97%) – The holding company bought back some of its own shares.
  • Occidental Petroleum (Increase by 1.85%) – US hydrocarbon exploration and petrochemical manufacturing company. 

Icahn Enterprises’ top 10 holdings

CompanyValuePercentage of portfolio
Icahn Enterprises$15,194,881,00069.85%
CVR Energy Inc$2,231,368,00010.26%
FirstEnergy Corp$795,508,0003.66%
Occidental Petroleum WTS$676,771,0003.11%
Xerox Holdings Corp$499,982,0002.30%
HERC Holdings Inc$486,341,0002.24%
Newell Brands Inc$432,561,0001.99%
Southwest Gas Holdings Inc$409,128,0001.88%
Bausch Health$218,049,0001.00%
Dana Inc$216,155,0000.99%

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