Contrarian Corpus
activist full deck follow up
2015-08-01 · 42 pages

Icahn Enterprises L.P. (self) IEP

IEP is Carl Icahn's public activist vehicle — a diversified holding company that has compounded at 19.2% since 2000 by buying undervalued businesses and forcing change as a controlling owner.

Thesis

Icahn Enterprises L.P. is a publicly-traded diversified holding company, ~88.7% owned by Carl Icahn, that applies Graham-and-Dodd value discipline paired with an activist catalyst. The deck argues that today's low-rate, cash-hoarding environment remains unusually conducive to activism and positions IEP as uniquely able to pursue control transactions, proxy fights, and operational turnarounds that individual investors cannot. It showcases a 1,426% total return since January 2000 (19.2% annualized), a $37bn asset base across nine operating segments (Investment, Automotive, Energy, Metals, Railcar, Gaming, Mining, Food Packaging, Real Estate, Home Fashion), and case studies such as the CVR Energy acquisition (~$2.0bn gain) and the Federal-Mogul Powertrain/Motorparts separation. The pitch rests on a $6.00 annual distribution yielding 6.9%, $1.0bn LTM Adjusted EBITDA, and $8.0bn Indicative Net Asset Value.

The three reasons

  1. 1

    IEP total stock return of 1,426% since January 2000 vs. 89% for the S&P 500

  2. 2

    Diversified holding company with ~$37bn of assets across nine operating segments with embedded activist upside

  3. 3

    $6.00 annual distribution yielding 6.9% backed by $1.0bn LTM Adjusted EBITDA and $8.0bn Indicative NAV

KPIs cited

IEP total stock return since Jan 2000
1,426% vs. S&P 500 89%, Dow 122%, Russell 2000 204%
IEP annualized return since Jan 2000
19.2% vs. S&P 4.2%, Dow 5.3%, Russell 7.4%
3-year gross return to Jun 2015
154% IEP vs. 64% Berkshire, 22% Leucadia, -4% Loews
Icahn Investment Funds return since Nov 2004 inception
~258% cumulative, ~13% compounded annual
Adjusted EBITDA attributable to IEP (LTM Jun 2015)
~$1.0bn (vs. $1,546m 2012 / $1,899m 2013 / $1,013m 2014)
Indicative Net Asset Value
~$8.0bn as of June 30, 2015
Annual distribution / yield
$6.00 per depositary unit, 6.9% yield at 6/30/2015
Carl Icahn ownership of IEP
~88.7% of outstanding depositary units
Total assets
~$37.3bn across 9 operating segments
CVR Energy stock appreciation
~93% from $30 tender price including dividends

Pattern membership

Where this document fits across the library's 12 rhetorical / structural patterns. Orange cells are present in this deck; neutral cells are not.

Precedents cited

  • CVR Energy acquisition (2012) — ~$2.0bn gain
  • American Casino & Entertainment sale (2008) — $0.7bn pre-tax gain
  • Oil & gas assets sale (2006) — $0.6bn pre-tax gain
  • Federal-Mogul Powertrain/Motorparts separation

Composition what's on the 42 slides

Visual + textual elements counted across every slide in this deck. Hover a box for what that element is; click to see every slide in the corpus that uses it.

Chart types used in this deck

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Notes

Fund-level investor presentation for Icahn Enterprises L.P. itself, not a campaign deck against a specific target. Carl Icahn and affiliates owned ~88.7% of IEP at the time. Page 3 is a peer-gap return table benchmarking IEP vs. Berkshire/Leucadia/Loews and the major indices; page 9 is the corporate org chart; page 11 is an acquisition/exit evolution timeline; page 12 diagrams the activist playbook; page 34 builds Indicative NAV via sum-of-parts. Full-text essay pages 5-6 articulate the 'activist catalyst' philosophy (useful quote mine). Portfolio positions named (AAPL, EBAY, CHK, HTZ, HLF, NAV, NUAN, HOLX, etc.) but not argued individually. No single named author — signed by the firm. Recent Funds performance was weak (-7.4% 2014, +8.4% H1 2015), which the deck softens by leaning on long-horizon compounded numbers.