Carl Icahn is a 79-year-old billionaire investor from New York known for his activist investment strategy and "Icahn Lift". He founded Icahn & Co. in 1968 and currently has a net worth over $20 billion. Icahn pursues contrarian, activist investments by purchasing stock or debt in companies and then pushing for changes to unlock hidden value. Some of his recent and ongoing investments include CVR Energy, Tropicana Entertainment, and an opposing position in Herbalife against Bill Ackman.

1. Carl Icahn
Billionaire Investor

2. Carl Icahn
Known for the “Icahn Lift”
79 years old, $20B+ net worth
Raised in NYC
Princeton (BA in Philosophy)
NY University School of Medicine (dropped out)
Started as a stockbroker on Wall Street in 1961
Founded Icahn & Co in 1968
Icahn Enterprises (IEP)

3. Investment
Strategy
<->
Contrarian
!
Activist
$
Value

4. 1
2
3
Purchase of
Stock or Debt
Promulgate
Change
Unlock
Hidden Value
Significant Financial Capital,
Human Capital
(experienced investment team)
Experienced management
teams, media coverage to
bring about change, rapid exe-
cution
Financial expertise, ability
to extract synergies through
bolt-on acquisitions with port-
folio companies
• Dealing with board and
management
• Proxy wars
• Tender offers
• Taking control
• Financial restructuring
• Operational turnarounds
• Strategic initiatives
• Corporate governance
changes
Resources
Required

5. Via subsidiaries
IEP to issue debt
Icahn’s personal
money and funds
from IEP
Sources of Funds

6. 2
Types
of Investments
Subsidiaries
Significant
holdings

7. Subsidiaries
Icahn Enterprise
GP
Icahn Enterprise
LP
Icahn Enterprise
Holdings
Icahn Capital LP
PSC Metals Inc.
AREP Real Estates
Holdings
WestPoint Home
LLC
Viskase Companies
Inc. (VKSC)
IEH Auto Holdings
LLC
Ferrous Resources
American Railcar In-
dustries Inc. (ARII)
American Railcar
Leasing LLC
Tropicana Entertain-
ment Inc. (TPCA)
Federal-Mogul Hold-
ings Corp. (FDML)
CVR Energy (CVI)
CVR Refining, LP
(CVRR)
CVR Partners, LP
(UAN)
1%
1%
99% LP interest
100%
100%
100%
100%
100%
73%
77%
56%
75%
68%
82%
82%
66%
53%

8. Current
Holdings
Significant Position
Public Companies
Significant
Holdings

9. Timeline of Recent Investments
‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15
Oil and gas assets
Gain of $0.6b
Acquired Icahn Capital
Management
Acquired 100%
PCS Metals
America Casino &
Entertainment:
$0.7b gain casino sale
Majority interest
in Federal Mogul
54.4% of ARI
contributed by Carl
Icahn
71.4% of Viskase
contributed by
Carl Icahn
Majority stake
in Tropicana
Entertainment
Majority interest
in CVR Energy
CVR Refining (IPO and
secondary offering)
CVR Partners (secondary
offering)
Majority interest
(75%) in ARL
‘16
IEP Auto acquired all
assets of Uni-Select Inc.
in the U.S.
Controlling
interest in
Ferrous Resource
Total Assets
$4.2b
Total Assets
$37.3b

10. Example 1: Failure in Blockbuster
‘04 ‘05 ‘06
Icahn bought
9.8m shares
‘07 ‘08 ‘09 ‘10
Blockbuster makes
bid to buy Hollywood
Entertainment
Doubled his
stake
Won a Board seat
Drove CEO Antioco
out of company
Sold majority of
stake,
at loss of 97%
‘11
Blockbuster
filed for
bankruptcy
“Worst investment I ever made.”

11. Example 2: PayPal Spinoff
$ b
2006 2007 2008 2009 2010 2011 2012 2013
eBay’s Revenue by Business Segment
Marketplaces Payments

12. Example 2: PayPal Spinoff
‘14 ‘15
eBay announces
PayPal spinoff
Share price
↑7.5% or $56.63
Icahn (2% of eBay)
proposes to spin-off
PayPal
Settles proxy fight,
re: PayPal spinoff
Spinoff completed
eBay acquired PayPal in 2002, after its IPO
‘16
Icahn now owns 4%
of each company;
Revenue Growth
eBay 10%
PayPal 19%

13. Example 3: Herbalife
‘12 ‘13
SEC filing reveals
Icahn’s 13% in
HLF
HLF falls 41% as Bill
Ackman announces his
$1b short
Increased stake to
16.5%, $250mm
FTC opened probe to
investigate HFL
His opposing position against Bill Ackman
‘14
Bill Ackman explains
his short;
HFL ↑25%
‘15

14. Icahn Capital Historical Return

15. Time Period IEP Berkshire Leucadia Loews S&P 500 Dow
Jones
Russell
2000
3y ended Jun
30, 2015
154% 64% 22% -4% 61% 47% 64%
5y ended Jun
30, 2015
190% 71% 35% 19% 122% 105% 120%
7y ended Jun
30, 2015
61% 70% -44% -14% 88% 88% 100%
Apr 1, 2009 -
Jun 30, 2015
327% 136% 77% 81% 195% 173% 222%
Jan 1, 2000 -
Jun 30, 2015
1426% 265% 261% 334% 9% 122% 204%
Apr 1, 2009 -
Jun 30, 2015
26.1% 14.7% 9.6% 10.0% 18.9% 17.4% 20.6%
Jan 1, 2000 -
Jun 30, 2015
19.2% 8.7% 8.6% 9.9% 4.2% 5.3% 7.4%
Gross Return
on
Investment
in Stock
Annualized
Return
Overall Performance Record

16. Taking a
Step Back
Are there
economic conditions
where the the strategy
works better?
Low interest rates
Acquisitions therefore are less costly.
Abundance of cash rich
companies
Icahn believes that many companies are holding
cash because they do not have positive NPV proj-
ects to invest in.
Prevalence of mediocre
top management
and non-caring boards.

17. Conclusion
Actual activism is difficult
To participate:
• Icahn Lift
• Invest in IEP

18. Appendices

19. NASDAQ: IEP

20. Company (Proposed) Acquisition Multiple Current Trading Multiple
CVR Energy 4.7x 8.7x
Lions Gate 4.4x 22.6x
Clorox (failed) 11.9x 14x
Dynergy (failed) 8.6x 18.5x
Value Investing