Carl Icahn’s net worth has sharply declined from a peak of approximately $17.5 billion to about $4.8 billion, marking a staggering drop of nearly 75%. This significant loss was triggered by a contentious battle with the short-selling firm Hindenburg Research, which accused Icahn’s firm of inflated valuations and unsustainable dividend payments. Icahn has vehemently rejected these allegations, maintaining his position as a tenacious investor despite the challenges.
The 89-year-old activist investor, once hailed as a formidable force on Wall Street, continues to assert his resilience. In recent interviews with The Wall Street Journal, he emphasized his ongoing commitment to investing, stating, “I keep going. I enjoy the game.” Despite his declining wealth, Icahn reportedly has found enjoyment in betting on National Football League games, with recent wins amounting to approximately $80,000 from wagers on the San Francisco 49ers and the Seattle Seahawks.
Icahn’s health has faced hurdles following multiple surgeries, including one for an enlarged spleen. Friends noted that while he spends considerable time reviewing investments, he has also maintained a civil relationship with his ex-wife, Gail. Despite the difficulties posed by his health, which has left him unable to walk comfortably and forced him to abandon his daily tennis routine, Icahn claims to have never missed a day of work due to his medical issues.
The decline in Icahn’s fortune is largely attributed to the fallout from Hindenburg Research’s accusations, which likened his business model to a “Ponzi-like” structure. In response to the allegations, Icahn denounced the short sellers and defended his accounting practices, stating, “They took part of my army away, like Alexander the Great. He has to change his battle plans, but it’s not that bad.”
Impact on Icahn Enterprises and Future Plans
Icahn Enterprises has seen a staggering loss of about 80% of its market value since the May 2023 short-selling attack. This decline was exacerbated by Icahn’s use of leverage, as he had pledged more than half of his holdings in the firm as collateral for personal margin loans. When the stock price fell, lenders compelled him to renegotiate to avoid a margin call.
Inside Icahn Enterprises, succession planning has become increasingly uncertain. His son, Brett Icahn, rejoined the firm in 2020, yet recent investments have faltered, including a significant stake in Bausch Health that resulted in losses exceeding $700 million. Furthermore, key executives have departed, leading to concerns about the firm’s direction and leadership.
Despite these challenges, Icahn is optimistic about the future. He highlighted a rebound in third-quarter earnings, which he characterized as among the company’s best, and pointed to new investments in EchoStar and Monro as signs of renewed momentum. Icahn Enterprises reported $287 million in net income last quarter, a substantial increase from the previous year, bolstered by gains in CVR Energy, the refining company it controls.
Activism Beyond the Balance Sheet
Icahn’s focus has expanded to challenge what he perceives as the dominance of major investment firms like BlackRock, Vanguard, and State Street. He argues that their influence over index-fund voting power undermines shareholder activism, which he believes is crucial for corporate accountability. Icahn is currently drafting a white paper aimed at Congress and President Trump, advocating for measures to curtail the power of these investment giants.
His philanthropic efforts remain significant, exemplified by his endowment of $200 million to the Icahn School of Medicine at Mount Sinai in 2012. He also supports various animal charities, firmly believing that his efforts in activism strengthen capitalism. Reflecting on his past, Icahn has described his earlier confidence as “hubris,” acknowledging that attempting to predict market movements is folly.
As Carl Icahn navigates this turbulent phase in his career, he remains steadfast in his belief that he can adapt and overcome the challenges he faces, both in business and in life.
