2015 is shaping up to be a year Carl Icahn would rather forget.
Year-to-date almost all of Icahn’s personal equity investments, and those of Icahn Enterprises LP have underperformed the market. Excluding dividends, year-to-date Icahn Enterprises LP is down 15%.
These declines are a direct result of the poor performance of top holdings; American Railcar Industries, Inc., Tropicana Entertainment Inc., Federal-Mogul Holdings Corp., CVR Energy Inc., CVR Refining, LP and CVR Partners, LP.
Carl Icahn’s other holdings have also taken a hammering recently. Chesapeake Energy Corporation has lost nearly two-thirds of its value so far this year:
While Apple Inc. has fallen 7.5% over the past three months:
Combined, these losses have cost Carl Icahn billions. When crude reached its peak during June 2014, Icahn stake in Chesapeake was work around $2 billion. Yesterday the value of this stake had fallen to $1.3 billion and as oil plunges to a new low today, further losses are likely.
According to the Bloomberg Billionaires list, declining equity values have so far cost Carl Icahn $2 billion this year, reducing his net worth by more than 8%, after several years of explosive wealth creation.
Carl Icahn: Shifting holdings
It has come to light this week that Carl Icahn has been selling down his long-term holding of Hologic, a developer and manufacturer of medical imaging systems. Based on his 13D filing with the Securities and Exchange Commission, Carl Ichan sold 6,000,000 shares in the company on August 4. Icahn and related parties still own just over 28m shares of Hologic.
Carl Icahn: Not the only one suffering
Most of Icahn’s holdings have been falling due to their exposure to the oil market. Icahn hasn’t been the only fund manager to lose out to turbulence in the oil market.
During the first half of the year, the Oakmark Select Fund was essentially flat for the quarter after its two largest energy holdings, Calpine and Chesapeake Energy Corporation declined more than 20%.
Additionally, Seth Klarman’s Baupost Group has a large holding in Cheniere Energy. Other big name investors holding this stock at the beginning of the year included John Griffin, Andreas Halvorsen, and Steven Mandel.