Carl Icahn talking at Delivering Alpha in New York on Sept. 13, 2016.
David A. Grogan | CNBC
Notable short seller Hindenburg Research goes after famed activist investor Carl Icahn.
The Nathan Anderson-led agency took a short place towards Icahn Enterprises, alleging “inflated” asset valuations, amongst different causes, for what it says is an unusually excessive web asset worth premium in shares of the publicly traded holding firm.
“Overall, we think Icahn, a legend of Wall Street, has made a classic mistake of taking on too much leverage in the face of sustained losses: a combination that rarely ends well,” Hindenburg Research stated in a word launched Tuesday.
The shares tumbled greater than 12% in Tuesday’s buying and selling.
Icahn, probably the most well-known company raider in historical past, made his title after pulling off a hostile takeover of Trans World Airlines in the Nineteen Eighties, stripping the corporate of its belongings. Most just lately, the billionaire investor has engaged in activist investing in McDonald’s and biotech agency Illumina.
Headquartered in Sunny Isles Beach, Florida, Icahn Enterprises is a holding firm that entails in a myriad of companies together with vitality, automotive, meals packaging, metals and actual property.
The conglomerate pays a 15.9% dividend, based on FactSet. Hindenburg stated it believes the excessive dividend yield is “unsupported” by the corporate’s money stream and funding efficiency.
CNBC has reached out to Icahn for remark.
Shares of Icahn Enterprises are down about 13% on the 12 months.