Filed Under:  U.S. & World

Legendary Investor Carl Icahn Suffers Rare Black Eye

Contributed by on March 26, 2015 at 1:30 am

Listen, bad investing mistakes happen to the very best of us. Even Warren Buffett stumbles from time to time. George Soros has made bad picks in the past. Regardless of which investment guru you follow, there is no such thing as a perfect trading record.

Case in point: Carl Icahn. This legendary investor is known for being very vocal. He is hell-bent on unlocking immediate shareholder value. This is why he has been a thorn in the side of many corporate directors. Whether we’re talking about Hertz or Apple, Carl Icahn is one voice that definitely stands out from the crowd. Moreover, Carl Icahn is widely known among investing circles as a solid stock picker. This man has a solid track record, and his billions in net worth is proof positive of his stock-picking prowess.

Be that as it may, Carl Icahn is not immune to the recent global crash in the price of oil. His investment vehicle Icahn Enterprises, linked to Icahn Partners investment arm, took a massive hit in the last quarter of 2014.

How bad did Carl Icahn get burned? We’re talking about $478 million. 

The reason is actually pretty simple. While other Carl Icahn holdings were doing well, there is one hole in his investment portfolio that was big enough to cause a massive loss. We are of course talking about oil. Carl Icahn made some investments in oil companies and since these companies’ fortunes and stock prices are tied to the global price of oil, these companies’ stocks took a bath. Regardless, this news just goes to show that regardless of how awesome an investor is, broader trends can still get the best of them.