For one of the most-discussed investors these days, we know surprisingly little about Carl Icahn's activist investing. Numerous magazine and journal articles profile or mention him. But, we could find only one book, from over twenty years ago, that covers his investment thinking.
Fortunately, we have abundant data about his activist projects. We studied these projects a bit, to see what lessons other activist investors could learn. We found some surprises.
Carl Icahn has a distinct approach. With a couple of notable exceptions, he avoids mega-cap companies, even though he has the assets and profile to tackle just about any company. He achieves his goals, and superior returns, though publicity, his outsized reputation, and financial clout. He follows-through on his threats less frequently, with few proxy contests. He usually settles with a company, accepting some BoD seats or the promise of a restructuring.
We elaborate in a current blog post.
|