Carl Icahn's company valuation under scrutiny by Bill Ackman: Analyzing the billionaire's dispute
In the world of finance, few names resonate as much as Bill Ackman and Carl Icahn. Known for their bold investment strategies, the two have made headlines numerous times, most notably during Ackman's activist short campaign against Herbalife. Their latest exchange, however, seems to indicate a potential revival of their long-standing feud.
Ackman recently took to Twitter to comment on Icahn Enterprises (IEP), implying that the company's current model, which generates yield by returning capital to outside shareholders, depends on the maintenance of the premium and the placidity of Icahn's margin lenders. Ackman's comments, while seemingly less than friendly, could be seen as fanning the flames of potential conflict between the two investors.
The short thesis against Icahn Enterprises, as presented by Hindenburg Research, includes assertions about inflated valuations of less liquid and private assets, losses due to a big short bet in late 2022, and the unsustainability of IEP's $2 quarterly dividend. The research firm states that Icahn Enterprises previously traded at a 218% premium to its net asset value (NAV), a point Ackman has also highlighted.
Icahn, who owns 85% of Icahn Enterprises, has refuted the Hindenburg report, referring to the firm as "blitzkrieg research." Despite the criticism, Icahn Enterprises' stock has taken a hit this year, losing more than 57% of its value due to attacks from short sellers.
Interestingly, Ackman, the founder of Pershing Square Capital Management, is not currently long or short on IEP's stock. It remains unclear at this time whether Ackman will seize on an opportunity to rejuvenate the feud with Icahn.
Their feud dates back to a bad deal in 2003, over 20 years ago. In more recent years, their most public and intense conflict was in 2012-2017 during Ackman’s $1 billion short bet against Herbalife, which he accused of being a pyramid scheme. Icahn took the opposite position, buying shares to combat Ackman’s short. The rivalry escalated into a public spat in 2013 on CNBC with insults exchanged, and Icahn continued to increase his stake in Herbalife to oppose Ackman’s campaign.
As of mid-2025, there are no detailed updates on current conflicts involving Icahn Enterprises. The feud between Ackman and Icahn is potentially brewing again, with Ackman's recent comments about Icahn Enterprises on Twitter serving as a reminder of their past battles.
Icahn Enterprises, a conglomerate owned by Icahn, invests in various sectors including energy, automotive, food packaging, metals, real estate, and home fashion. Whether Ackman will choose to engage further in this new potential conflict remains to be seen.
References: 1. The New York Times 2. Bloomberg 3. CNBC 4. Hindenburg Research Report on Icahn Enterprises
- The recent exchange between Bill Ackman and Carl Icahn, as seen in Ackman's comments about Icahn Enterprises on Twitter, indicates a potential revival of their long-standing feud that dates back over 20 years, with their most public conflict being Ackman's $1 billion short bet against Herbalife in 2012-2017.
- Ackman, known for his bold investment strategies in the world of finance, has recently expressed concerns about Icahn Enterprises' current model, implying its reliance on the maintenance of the premium and the placidity of Icahn's margin lenders, potentially sparking a new conflict between the two investors.
- While Ackman, the founder of Pershing Square Capital Management, has not yet revealed his stance on Icahn Enterprises' stock, his comments could hint at a possible rejuvenation of the business-related battle between these two prominent investors.
