Here’s Why Carl Icahn Loves Herbalife, Hertz Global and Freeport-McMoRan

Carl Icahn is a famous activist hedge fund manager and investor. According to Forbes, Icahn’s total net-worth stands at $19 billion. Icahn is behind several hostile takeovers in the corporate world. The billionaire manages Icahn Capital LP, whose portfolio has a total value of $19 billion. In this article we will discuss some of Carl Icahn’s favorite stocks by taking a look at the most recent 13F filings published by the investors’ hedge fund.

Hertz Global Holdings Inc (NYSE:HRI)

Carl Icahn’s fund bought 181,929 new shares of Hertz Global Holdings Inc (NYSE:HRI) in the second quarter, ending the period with a total of over 4.49 million shares of the company. The total value of these shares is $178.22 million. Hertz Global is a car rental company. The stock is up over 17% year-to-date. The stock is poised for more growth as the transportation industry is thriving around the world. Hertz Global will announce quarterly results next month. Analysts’ EPS estimates for the quarter results recently experienced a hike to $1.41 per share from 1.30 per share. Earlier this month, MKM Partners increased its price target for Hertz Global to $36 from $12. The firm maintained a “Buy” rating for the stock. MKM’s analyst Chris Agnew said in his report that Hertz Global’s balance sheet will get strong amid refinancing of debt and extension of several maturities this year. On October 6, Deutsche Bank analyst Chris Woronka also increased his price target for Hertz Global to $18 from $14.

Freeport-McMoRan Inc (NYSE:FCX)

Freeport-McMoRan Inc(NYSE:FCX) is a Phoenix, Arizona-based mining company. Icahn Capital LP bought 351,644 new shares of the company. As a result, the fund now owns $1.099 billion stake in the company. Freeport-McMoRan is currently facing some headwinds. Earlier this month, Deutsche Bank analyst Chris Terry downgraded the stock to a “Sell” with a price target of $13. The analyst said that the primary reason for his bearish rating is uncertainty the company is facing at Grasberg mine in Indonesia. However, in September, Canada-based banking and finance firm CIBC started covering the stock with an “Outperformer” rating and a price target of $18. On October 4, investment firm Jefferies decreased its price target for Freeport-McMoRan to $19 from $23. Jefferies, however, has a “Buy” rating for the stock. Jefferies is also concerned about the problems in the Grasberg mine. This shows that the current headwinds faced by the company are temporary.

Herbalife Ltd. (NYSE:HLF)

Carl Icahn surprised Wall Street by acquiring a new position in Herbalife Ltd. (NYSE:HLF). Icahn Capital bought over 22.87 million shares of Herbalife in the second quarter. The total worth of these shares is $1.77 billion. Herbalife shares have gained about 50% since the start of this year. Earlier this month, Herbalife reached new highs after the company announced its plans to buy back about 7% of its stock. The announcement was a big blow to Bill Ackman, who has been betting against the stock since 2012.