Carl Icahn began his career in 1961 as a Registered Representative at Dreyfus & Company where he learned about options and convertible assets. In 1968, he started his own brokerage firm Icahn & Co. Inc. Icahn is the Chairman of Icahn Enterprises which has various businesses under its wings including investment management, real estate, consumer goods, and metals. Legendary corporate raider Carl Icahn is one of the most active and successful hedge fund managers in 2011.
Carl Icahn was also one of the most highly paid hedge fund managers in 2010. Icahn is an activist investor – in other words, when he buys positions, they are sizable enough to allow him a voice in the operations of the business. He is a significant shareholder at almost 2 dozen corporations. From such positions, Icahn has been able to affect the fates of several companies.
Here are Carl Icahn’s top 10 favorite holdings at the end of June:
1. Icahn Enterprises L P (IEP): Icahn Enterprises provides investment management, automotive, gaming, railcar, food packaging, metals, real estate, and home fashion businesses worldwide. IEP recently traded at $39.05 and has a 1.02% dividend yield. IEP gained 6.61% during the past 12 months. The stock has a market cap of $3.3 billion and P/E ratio of 3.87. Icahn had $3.4 billion invested in IEP shares. Whitebox Advisors’ Andy Redleaf also initiated a $10.5 million position in IEP during the second quarter.
2. Motorola Solutions Inc (MSI): Motorola Solutions provides business- and mission-critical communication products and services worldwide. MSI recently traded at $44.81 and has a 1.96% dividend yield. MSI gained 31.25% during the past 12 months. The stock has a market cap of $15.4 billion and P/E ratio of 24.22. Icahn had $1.7 billion invested in MSI shares. According to Business Wire, on July 14 MSI announced it is expanding its current services offering to help enterprises and government agencies maximize the benefits of their business- and mission-critical communications assets. Jeffrey Ubben’s Valueact Capital increased his MSI holdings by 415% during the second quarter. Ubben had $945 milllion invested in MSI shares at the end of June. George Soros’ Soros Fund Management also holds $261 million worth of MSI shares (check out George Soros’ top holdings).
3. Federal Mogul Corp (FDML): Federal-Mogul Corporation supplies power train and safety technologies worldwide. FDML recently traded at $17.02 and lost 5.34% during the past 12 months. The stock has a market cap of $1.7 billion and P/E ratio of 8.6. Icahn had $1.7 billion invested in FDML shares. Christopher Pucillo’s Solus Alternative Asset Management and George Soros’ Soros Fund Management other prominent funds which have positions in FDML.
4. Clorox Co (CLX): Clorox Co. is a global company providing chemical and food products worldwide. CLX recently traded at $69.47 and has a 3.45% dividend yield. CLX is one of the top 10 S&P 500 Dividend Aristocrats. CLX gained 7.71% during the past 12 months. The stock has a market cap of $9.1 billion and P/E ratio of 33.24. Icahn had $843 million invested in CLX shares. Boaz Weinstein’s Saba Capital, John W. Rogers’ Ariel Investments and Steven Cohen’s SAC Capital Advisors also have positions in CLX.
5. Forest Labs Inc (FRX): FRX recently traded at $33.18 and gained 6.18% during the past 12 months. The stock has a market cap of $9.1 billion and P/E ratio of 8.07. Icahn had $783 million invested in FRX shares. Jim Simons also had $16 million invested in FRX at the end of June. Jim Simons’ Medallion Fund returned 73% in 2007 and 80% in 2008. He is also performing spectacularly so far in 2011. We recently wrote about the mystery behind Jim Simons’ amazing returns.
6. Motorola Mob Wi (MMI): Motorola Mobility Holdings provides technologies, products, and services for mobile and wire line digital applications. Icahn had $738 million invested in MMI shares. Google will be acquiring MMI for a 70% premium.
7. Lions Gate Entertainment Corp (LGF): Lions Gate Entertainment is an entertainment company providing motion picture production and distribution. LGF recently traded at $7.08 and lost 3.28% during the past 12 months. The stock has a market cap of $1 billion and P/E ratio of 54.46. Icahn had $296 million invested in LGF shares.
8. American Railcar Industries Inc (ARII): American Railcar Industries provides hopper and tank railcars in North America. ARII recently traded at $18.05 and has a 0.66% dividend yield. ARII gained 28.01% during the past 12 months. The stock has a market cap of $0.4 billion. Icahn had $271 million invested in ARII shares.
9. Vector Group Ltd (VGR): Vector Group engages in the manufacture and sale of cigarettes in the United States. VGR recently traded at $17.55 and has a 9.12% dividend yield. VGR gained 0.17% during the past 12 months. The stock has a market cap of $1.3 billion and P/E ratio of 18.09. Icahn had $251 million invested in VGR shares. Jim Simons’ Renaissance Technologies also holds $69 million worth of VGR.
10. Hain Celestial Group Inc (HAIN): The Hain Celestial Group provides natural and organic food and personal care products worldwide. HAIN recently traded at $32.3 and gained 38.45% during the past 12 months. The stock has a market cap of $1.4 billion and P/E ratio of 26.26. Icahn had $238 million invested in HAIN shares.
Market data is sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.