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Carl Icahn is an activist investor with a long track record of success agitating for change at underperforming companies.

The Manual of Ideas estimates that Icahn’s top three ideas at this time are Yahoo! (NASDAQ:YHOO), American Railcar (NASDAQ:ARII) and Icahn Enterprises (NASDAQ:IEP). Our analysis is based on a recent Form 13F-HR filed by Icahn Associates with the SEC. We also consider his past 13F-HR filings, recent 13G and 13D filings as well as the latest market prices of the portfolio holdings. Please see below for an explanation of the MOI Signal Rank™ methodology. (Click charts to enlarge.)

MOI Signal Rank™ – Top Current Ideas of Carl Icahn

Top Holdings of Carl Icahn – By Dollar Value

Portfolio Metrics

Portfolio Size

$2.58 billion

Top 10 Holdings % of Portfolio

100%

Median Market Cap ($mn)

$352 million

Average Market Cap ($mn)

$2.9 billion

Average Dividend Yield

3%

Average P/E

30x

Average P/B

7.3x

Sold-Out Positions

  • Forestar Real Estate (NYSE:FOR)
  • ImClone Systems (IMCL)
  • Lear Corp (NYSE:LEA)
  • Telik (OTCQB:TELK)
  • Temple-Inland (NYSE:TIN)

New Positions

  • None

About MOI Signal Rank

MOI Signal Rank answers the question, “What are this investor’s top ideas right now?” Rather than simply presenting each investor’s largest holdings as of the recently filed quarter end, MOI’s proprietary methodology ranks the companies based on the investor’s current level of conviction in each holding, as judged by The Manual of Ideas.

Our proprietary methodology takes into account a number of variables, including the size of a position in an investor’s portfolio, the size of a position relative to the market value of the corresponding company, the most recent quarterly change in the number of shares owned, and the change in the stock price of a position since the most recent quarterly filing date.

For example, an investor might have the most conviction in a position that is only the tenth-largest position in such investor’s portfolio. This might be the case if an investor invests in a small company, resulting in a holding that is simply too small to rank highly based on size alone. On the other hand, such a holding might represent 19.9% of the shares outstanding of the subject company, suggesting a high level of conviction. Our estimate of the conviction level would rise further if the subject company has a 20% poison-pill threshold, thereby suggesting that the investor has bought as much of the subject company as is practically feasible.

Disclosures: None.

Source: Carl Icahn's Top Three Stock Ideas