CNBC’s David Faber speaks to activist investor Carl Icahn regarding how much cash he has available to invest and whether Chesapeake Energy is undervalued.
Roubaix Composite February 2021 Net Return +7.87%; YTD Net Return +11.34%
The February 2021 monthly tearsheet for the Roubaix Fund Composite, a fundamental long/short equity strategy focused on small and mid cap U.S. stocks. Q4 2020 hedge fund letters, conferences and more Roubaix Composite Performance Roubaix generated a net return of +7.87% in February relative to the long-only benchmark Russell 2000 Index total return of +6.23% Read More
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ctivist shareholders unite at the passive summit in mid town, new york. david faber has been rubbing elbows all day with the best in business managers. he joins me now with the cnbcexclusive. with one of the activists out there, carl icahn, with icahn enterprises. yes, there isn’t activism without carl icahn.there still isn’t tp how much are you sitting on to invest. well about $10 billion with mine and ap. we have that much liquidity.that’s all yours, we should point 5 billion tonight if we want to. i believe in a big war chest. i think that’s a mistake that a — how do you write a a check for 65% of the fund would you, for one deal. it’s not the fund. i understand it’s you. you never write a check for 65% — i said we could. i didn’t say i would. you almost add write a pretty big check for clorox. would you?absolutely. really? if you look at our record, and i’m proud to say, we made, since 1990, 27 — 25% annualized return. but the real big money is made like when we get control of one of these, clean them up. like the casino. paying 300 million and sell them for a billion three, receive ep years later. better than oil companies. maying 330 in ’05. in the ’06 we sold it for abillion five. so you want to get control of them. i think the that’s what is missed. everyone is, saying, you’re just fooling around.we’re not fooling around. you’re not fooling around. you did really well last year. people forget, up 37%. yes. all your own money.but el paso, motorola mobility. not big fights that a lot of usremember. well, they manifested themselves. think about motorola. stock was as low as 3 in 2007, and now 11.5. so we did well with that. butiogen, amolin. well, you’re not happy, theyhave seen to have clone up from bristol meyers. there is a willingness from the company to sell itself. i really can’t talk about my conversation. i had a good conversation — how many directors have you on amolin? one? well, the other is arepresentative of another fund. i forgot the name of it. actually, i’m not sure it is there, the fund. even the one we have, i’m goodfriends with him, and we talk a lot, but he setting up his ownfund. right. who’s been a director a number ever times. we are still on the position of it and i add long talk with dan, and i can only say, i can’t talk about what we talked about. you can’t talk about what you talked about? but after that, we had a proxy. all right. maria, i know you want it ask a couple of questions of charl. go ahead. all right. thank you, david. carl, let me ask but chesapeake. you sole most of your chesapeake energy stock last year above $30 a share. what a great move. what are your thoughts now about the controversy surrounding ceo? why it is today. is there value in the stock now that it’s about $18 a share? would this be considered undervalued or you don’t want it touch it again with the controversy at the company. i would really rather not talk about it. we don’t like to talk about, youknow, positions that we might or might not have at this point. i think that, i will say this. i do think that the chesapeake is undervalue. but aside from that, you do have other problems, as you know. but that’s all i’ll say. yeah. would you be poised to get back involved now in a bigger way, given that it is undervalued in your view? i really honestly, don’t know. i’m not — i’m not being flippant with you, but i do not know. we are studying it.put it that way. i’m not saying we have a position or we don’t.right, right. no, i understand. let me move on to the formerspace, carl. we have seen a deal — which one. grabbing headlines far while. you’re in talks with am lin, i know you just mentioned it to david. who would you consider a good buyer for the company? which other companies in this space could be a ripe for takeover — yeah, maria, i told, i would tell you about amolin. again, i’m not being flip with you. we signed a confidentiality. we’re basically not talking about it. let’s talk about one that you’re selling. motorola solutions. we had jeff here. i saw that, yeah. why are you getting out of motorola solutions. well, i think he and i have slightly different views about it. i happen it like rick brown a lot. he has done an excellent job. as he said on your show today. i watched it quickly. he said we did a good job in helping et split up. if you remember, we had 300 million shares of that company, when it was down at three or four. a long time. we owned itfor four or five years. but still, hey, we could find it lower at 3. now it is equivalent to 11 1/2. when do you say okay? we had enough.i’m not an activist in it. so, we might have certaindisagreements. greg and i. but like everybody does. but i think greg has done an excellent job. there is an opportunity it sell, a good price. stock is 11.5. no way am i saying that jeff is wrong.i sold a lot of things way too soon. something you sewn cvrenergy. some say, hey, we caught up with the dog caught the car, so to speak. yeah. what do you say to those that say, you never really want it own it. he said when we bought thestratosphere, said it was no good. the indians were going to killus. and they said that when we bought the oil companies.bought it for 3 million and sold it for a billion five. you know what i have learned in this business? tell me, what have youlearned? i’m all ears, baby. what? some people study artificialintelligence. i study natural stupidity. and that’s what i think about a lot of people that say this about you, that about you, thisabout you. i don’t think they’re right, obviously. and i — sort of have been more right than wrong. the roger kipling thing, is ifyou can keep your head about you — so what others say doesn’t matter. but i think, long-term, without going further, i’m just saying long-term overlook, wb there is risk in but i think there’s a lot of reward too. you probably own it for a while, right? yeah.look, we have that, as you said, that cvr but it is not easy to sell it. we have said that. but we have to try. the one and only carl icahn. maria, back to you. thank you. the freedom tower soaring to record heights in new york