What Is The Icahn Lift And You Can Make A Profit With It

The so called “Icahn Lift” is the rise in the stock price of a company when Carl Icahn starts buy shares in.
This always happens because Carl Icahn such a great reputation in being able to deliver value to shareholders in the companies he gets in. How is that possible?
Well, Icahn is an activist investor, we’ve already explained in one of the previous pills that these kind of hedge funds use their power to get to the board of directors and bring changes that they think will create more value for shareholders. These changes can be stock buybacks, sale of underperforming branches of the business, increasing dividends, cutting costs, cutting managers bonuses etc…
Carl Icahn has a great track record for being able to bring these kind of changes in companies he targets.
So when he announces that he’s buying into a company, other investors jump on the “Icahn Lift” in order to benefit for the future value creation Icahn is going to bring to the shareholders. This is good for the shareholders buti t may not be great for the company on the long run.
Icahn himself, when he got control in airline company TWA laid off lots of people, sold the company’s assets and sold the airline routs. The company went bankrupt in 2001. The problem that some of these activist investors don’t care about the long term health of the company was remarked by BlackRock Founder and CEO Larry Fink (that we’re going to cover so make sure to subscribe). Fink, who is the head of the largest asset management company in the world, said that companies shouldn’t fear the interfearance of activists that much, when they’re planning their long term strategy.
We’re going to cover Carl Icahn very soon, so make sure to sbscribe to the channel and turn on the notification bell.
#icahnlift #carlicahn #hedgefund

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[ryminvesting]

Very useful information. Thank you for sharing.

[chrisklupenger]

I worked for a company that Carl bought a large stake in. He sure knows how to piss off employees at the company!