key activist investor Carl Icahn Admitted to his error in making a huge bet on a market crash, which ultimately resulted in his group losing nearly $9 billion over six years.
net asset value of Icahn Enterprises LP (NASDAQ: IEP) fell from $7.9 billion in 2017 to $5.6 billion this month, a potential issue for Icahn, as he has traditionally opted for an annual dividend of $8 per share in stock rather than cash.
As a result, the number of shares outstanding more than doubled in six years, resulting in a decline in net asset value per share from $33 to approximately $16.
read also: Icahn's double whammy: Buying first quarter stock after a short report,
While Icahn still maintains some belief that the economy is unfavorable and anticipates future challenges, he acknowledged, “We are still hedged, but not to the extent that we were.”
according to a Analysis According to the Financial Times, activist investors lost nearly $1.8 billion in 2017 due to hedging positions and a further $7 billion between 2018-Q1 of FY23.
Icahn admitted in an interview with the Financial Times, “i've always told people that there's nobody who can really pick and choose the market on a short-term or intermediate-term basis. Maybe I followed my own advice.” Made the mistake of not doing it.” recent years.”
These trades have left Icahn in a precarious position and jeopardized his reputation as one of Wall Street's most feared activist investors.
Price Action: Shares of IEP are down 4.35% at $33.19 premarket last check Friday.
Photo by Insider Monkey via Flickr Creative Commons
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this article Carl Icahn Admits to Mistake on Bearish Bet, Says He Should have Heeded His Advice originally appeared benzinga.com
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