Carl Icahn's Hedge Fund Is Imploding

In this video we look at recent developments related to Icahn Enterprises, an investment company owned by the billionaire investor Carl Icahn.



#Wallstreetmillennial

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Creative Commons — Attribution-ShareAlike 3.0 Unported — CC BY-SA 3.0
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0:00 - 1:24 Intro
1:25 - 4:04 Margin Loans
4:05 - 10:16 Investment Losses
10:17 Conclusion

[NorwoodGuernsey]

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

[mshotz]

They guy who killed TWA? The guy who's personally picked management team bankrupted GM? Yeah too bad.

[johnpriyadi]

Elon pledge 238 million tesla shares for twitter margin loan, with max loan at 25% of total value of pledge stocks (ex: assuming current price at 170, max loan of 10 billion out of the 40 billion market cap of 238 million shares). What makes it different with Ichan's case? Is it because Ichan is taking out 5 billion margin loan out of 4 billion NAV?

[Eazymas]

Seen the documentary about him in HBO always feels there is something off with those investor success stories.

[ChloeCarter-kdgz]

Investing in stocks may appear simple at first glance, yet choosing the right stock without a solid strategy can indeed be quite daunting. The uncertainty of stock movements - whether they rise, fall, or meander unpredictably - poses a significant challenge for investors. I've been diligently growing my $210K portfolio, and my main hurdle lies in the absence of well-defined entry and exit strategies. Any guidance on this issue would be immensely valued.

[luapgluapg]

If the market crashes He will be back on top

[fritzbaden]

If he is net short how does his fund pay dividends??

[charlesbusch]

I would never invest in his fund. Instead, invest in individual stocks thereby having a right to vote?

[moneypro]

Couldn't happen to a better guy 🙃

[I_Dolemite]

No wonder he was almost hired as an advisor during the Trump presidency.

[jungsa]

Oh mr "herbalife isn't a scam" lost money? Karma

[TheGahta]

"no one knows if a stock goes up, down or in fucking circles, least of all investors" 😂

[gregtomamichel]

Last 5 years... IEP down 80%, S&P500 up 87%. Ouch.

[mr.lumbergh]

Oh noes! A guy who made his money as a vampiric corporate raider has his comeuppance coming!

[Jeez]

He got away with lot of sleezy things because of his ties to wall-street. Even recently he was just hit small fine rather than jail time

[rb]

Never liked that guy and his investment style (he’s a corporate raider, period) but this yours made me check my portfolio (mostly ETF’s) …. Gladly IEP is not part of it. Sorry for those that eventually will pay the price of his greed

[onlythebest]

The most critical item in this video which was just glossed over, is the fact he redid his agreement to have the billion $ loan based on iep net asset value (which is all mark to market black hole valuation) instead of the stock price (which is transparent and visible to all). So this means even if the stock tanks he will not get a margin call as long as the NAV valuation remains intact…but no one knows the true NAV given the complexity and nonpublic info.

The next step of his plan which is playing out now is to tank the stock price to such a low level, he can buy it back using pennies on the dollar, this started with the dividend cut, and the very recently announced $400m share sales. The next action will be to remove dividend altogether. Basically sell the stock to retail dumb money, tank the stock, buy it back for pennies in a few years. His net worth may be in those stocks, but it’s already used as collateral to allow him to pocket billions in cash, so he doesn’t care.

The scam is actually brilliant, there is a reason all the pros just tell retail dumb money to buy sp500 and call it a day, you can’t even remotely understand/know what stocks like iep is doing. If this pig ever goes below $5 which is where I believe the true nav is, factoring in the new issuances, I might do a lottery buy on it.

Edit: also to add no bank or investment firms will touch this stock or loan money to iep, Only Jefferies who continue to support iep and give it crazy valuation / target price in the 20s while loaning him the money, basically helping iep to scam the retails. I personally know guys who work there on the valuation side, and they are not the brightest bulb / complete mess of a risk structure. But I think there is something else going on for them to support Icahn so faithfully, that is beyond just earning some fees from selling his stocks….the game is too deep for outsiders to understand.

[CashisKingtrucking]

I'd never trust a guy like this. He made his money tearing stuff down not building it up.

[AvocadoAfficionado]

"legendary investor" just means "been in the game long enough to know how to scam you" / "has the reputation to burn for personal gain"

[tothelighthouse]

Inevitably Icahn will make out like a bandit, unfortunately. He'll end up with personal $billions no matter what happens to IEP, the loans, & his retail -suckers- investors.

Same playbook Elon Musk keeps in his back pocket. I note with interest, the role played by enablers like 10:30 Andrew Ross Sorkin/CNBC/NYT. The access journalism practiced by so many financial journalists like Sorkin is what feeds the hype machine people like Icahn & Musk need to attract retail investors.