Carl Icahn: Activism Update & Investor Letter ~ market folly

Wednesday, February 24, 2010

Carl Icahn: Activism Update & Investor Letter

Recently we've seen some updates in regards to Carl Icahn's portfolio. The hedge fund manager and activist investor is seeking four seats on Genzyme's (GENZ) board (one for himself and three for associates). Icahn is up to his usual rabblerousing ways and is seeking to institute change at the company. It seems likely he would pressure the company to sell itself entirely or part of its businesses. After all, shares are the lowest they've been over the last half decade. Genzyme was his fourth largest disclosed holding when we looked at Icahn's investments. This news shouldn't really be startling by any means. In typical Icahn fashion, he is assembling a platform to institute change and generate shareholder return.

Additionally, we saw a few weeks ago that Icahn said he wanted to raise his stake in Lions Gate Entertainment (LGF) to nearly 30% of the company. He has put forth the offer and would need over 13 million more shares in order to do so.

All of this recent activity comes after good news regarding his Motorola (MOT) position. The company plans to split itself up and, as Icahn detailed in his recent investor letter, he thinks MOT shares have much further upside as value becomes unlocked.

Courtesy of the fine folks at Dealbreaker who originally posted this up, you'll find below Icahn Partners' annual investor letter:

You can directly download the .pdf here.

We'll have to watch the developments with GENZ and LGF as Icahn positions himself for his next big moves. For more insight from prominent hedge fund managers, we highly recommend checking out the following resources we've posted up: Paolo Pellegrini's PSQR Capital annual letter, the latest letter from Perry Partners, hedge fund Conatus Capital's letter, global macro fund Woodbine Capital's commentary, plus many more.

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