Is There Any Nuance in Icahn’s Relationship with Apple?
In August, notorious activist investor Carl Icahn announced – via Twitter – that his fund, Icahn Enterprises (NYSE:IEP), had taken a “large position” in Apple (NASDAQ:AAPL). Icahn suggested that the company is still “extremely undervalued” — shares closed Friday at $487.22 — an argument that has been on the tip of many investors’ tongues ever since shares dropped below $500 earlier in the year and the company first announced its massive buyback program.
That program, despite being the largest single stock buyback announcement ever made, is, according to Icahn, not enough. The self-made billionaire has a mixed reputation as an activist shareholder, but his track record is dense with success. Much of his activism is a function of his impression of the value of a company versus the market value of a company, and he, like many other successful investors, has a habit of buying large stakes in companies that are undervalued.
If he’s right about Apple, Icahn — and other shareholders — could stand to make some money.