Icahn Calls JANA Partners A Pansy

Icahn Calls JANA Partners A Pansy

JANA Partners dumped nearly half its Hertz (HTZ) stake this week, ending its activist campaign and now owning just 4.9% of the company. During its activist holding period, the stock posted a -28% CAGR. Meanwhile, Carl Icahn stood by his car rental play, upping his Hertz stake by ~20% this week to 14.3%.

The biggest issue for HTZ going forward is the worry that Uber and the likes will cut into its business. Granted, HTZ still has a stronghold in the airport rental business, the big answer for preventing a distribution of its business from this new tech is to spend more on technology.

Activist ideas – Idea Generation and beyond

Seth Klarman’s 2021 Letter: Baupost’s “Never-Ending” Hunt For Information

Baupost's investment process involves "never-ending" gleaning of facts to help support investment ideas Seth Klarman writes in his end-of-year letter to investors. In the letter, a copy of which ValueWalk has been able to review, the value investor describes the Baupost Group's process to identify ideas and answer the most critical questions about its potential Read More

HTZ is already focusing on making technology a competitive differentiator. This includes moving to a cloud-based platform, designing customer-centric systems, and developing a mobile-focused product offering. The development of such infrastructure and platform is expected to take a year and a half but ultimately offer $150mm a year in cost savings.

This is either one of the most misunderstood companies around or one of the best shorts. Understanding the accounting for depreciation and capital intensive / resell potential is often overlooked. However, who really rents a car these days?

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