Icahn Enterprises LP stock fell 5% to $19.86 on Tuesday, bringing it within sight of a 52-week low of $18.03, which it reached earlier this year after short seller Hindenburg Research published a scathing article about company.
The stock has fallen for six of the past seven days, and if it holds these losses it will end today’s session at its lowest closing level since October 26, 2004, when it closed at $19.48.
a Article published by The New York Times On Tuesday, he highlighted the implications of the Hindenburg Report for billionaire activist Carl Icahn and his publicly traded investment arm, the IEP.
The Nate Anderson-backed Hindenburg accused Icahn Enterprises of overestimating values and paying dividends it could not afford. The stock immediately lost billions of dollars in market value, and earlier this month, the company cut its dividend in half.
“It’s very embarrassing for Carl because this guy beat him and beat him at his own game,” Mark Stephens, author of the 1993 book “King Icahn: Biography of the Maverick Capitalist,” told The Times.
The stock fell 30% of its value on August 4, the day Icahn Enterprises announced it would cut its dividend in half.
“I believe the second quarter partially reflects the impact of short selling on companies we control or invest in, which I attribute to the misleading and selfish Hindenburg Report with respect to our company,” Icahn said in a statement at the time.
Hindenburg also revealed that Icahn had borrowed money from his own company, a development disclosed in a footnote to the financial statements that Wall Street ignored.
is reading: What we know about the margin loan of Carl Icahn
See also: Carl Icahn refutes Hindenburg Research’s short seller report. He has already cost his company $6 billion in market value.
Icahn later Finalizing modified loan agreements with banks who separated his personal loans from the trading price of his company’s stock.
Icahn Enterprises, 84% owned by Icahn and his son Brett, showcases Icahn’s personal portfolio of public and private companies, including oil refineries, auto parts makers, food packagers and real estate. Its unit holders are mostly individual investors.
The fund has performed poorly in the past decade. For many years, Icahn has openly expressed doubts about the bull market that has raged around him. He has heavily shorted the stock market as a hedge against his long activist positions. Going into 2021, for example, Icahn’s mutual fund had a short-term exposure of 142%, SEC filings show.
In recent interviews, Icahn has admitted his short position was a mistake and said he is committed to returning to his core strategy of activism, which he believes has allowed him to unlock billions of dollars of shareholder value for himself and others.
“What we’re doing is very impressive,” Icahn told the newspaper in phone interviews that the paper said took place over the past month.
Icahn estimated to The Times that his activist campaigns have involved dozens of companies, including Apple Inc. AAPL
paypal Holdings Company PYPL,
Forest Laboratories, Herbalife Ltd., HLF,
and Netflix NFLX,
It helped generate $300 billion in additional value for those companies’ shareholders.
For more, see: Carl Icahn Admits He Was Wrong When He Took A Massive Short Position In A Market That Lost $9 Billion
Icahn Enterprises shares have lost 61% of their value in the year so far, while the S&P 500 SPX is up 15%.
For more, see: Icahn Enterprises stock fell 30% after the company cut its quarterly dividend to $1 per unit