Icahn's Double Whammy: Q1 Stock Buys Followed By A Short Report

Zinger Key Points
  • Carl Icahn increases his IEP holdings by 11.48 million shares, now 71.3% of his portfolio.
  • He also opens a new position in Illumina, buying 430,000 shares valued at $99.97 million.

Editor's note: This story has been updated to reflect that Carl Icahn's stock purchases in the first quarter of 2023 came before the publication of Hindenburg Research's short report. 

Billionaire activist investor Carl Icahn faced a steep challenge recently as his conglomerate, Icahn Enterprises L.P. IEP, was the subject of a short report issued by well-known short seller Hindenburg Research

Shares of Icahn Enterprises saw a remarkable drop following the release, and despite a modest rebound, they've struggled to return to their prior trading range.

A new filing from Icahn shows he may have made a stock purchase at the wrong time.

Read Also: Short-Seller Blasts Icahn Again, Raises Suspicion: ‘Where Is This Money Coming From?’

What Happened: The investment mogul purchased an additional 11.48 million shares in the first quarter, according to a 13F issued Monday, which represents 71.30% of his portfolio, up from the previous 70.43%.

The first quarter ended on March 31, while the Hindenburg report was issued on May 2, implying that unless Icahn has since offloaded some of the shares purchased in the first quarter, his latest investment in IEP is down, a position exacerbated by the company's shares remaining roughly 30% lower since the release of Hindenburg's report.

On the short report, Icahn Enterprises refuted the allegations, describing them as a “disinformation campaign,” and said it would take appropriate steps to protect shareholders and combat the claims.

Separately, the investment giant, known for his scuffle with Pershing Square's Bill Ackman, also opened a new position in Illumina, Inc. ILMN, a leading company in the genomics industry, by purchasing 430,000 shares valued at $99.97 million.

Read Next: Icahn Enterprises Stock Nosedives Over Ponzi Scheme Allegations: 5 Key Takeaways From Hindenburg Short Report

Photo: Insider Monkey via Flickr Creative Commons. 

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