Carl Icahn Net Worth Plummets $12.7 Billion After Short-Seller Attack

Carl Icahn has lost over $12 billion this year. The activist investor’s fortune crashed from $17.5 billion to $4.8 billion. This happened after a bruising fight with a short-selling firm.

Forbes confirmed the massive drop. It marks the steepest decline of Icahn’s legendary career. The 89-year-old’s financial empire is now under intense pressure.

Icahn Enterprises Loses 80% of Market Value

Hindenburg Research targeted Icahn’s firm in May 2023. The short-seller accused the company of inflated asset values. It also described the dividend model as unsustainable, according to reports from Reuters.

Icahn publicly denied all allegations. He called the claims lies. The market reaction was severe anyway.

Share prices for Icahn Enterprises collapsed. The company lost about 80% of its market value. Its stock hit its lowest level in decades.

Icahn’s personal use of leverage made the fall worse. He pledged over half his holdings for personal loans. Lenders forced him to renegotiate terms to avoid a margin call.

Succession Plans and Future Investments

The fallout created uncertainty within the company. Brett Icahn, Carl’s son, rejoined the firm in 2020. Some recent investment bets have underperformed significantly.

A major position in Bausch Health lost hundreds of millions. Key executives have also departed. Leadership changes have prompted questions about succession.

Despite the turmoil, Icahn sees a potential rebound. He pointed to strong third-quarter earnings in a Wall Street Journal interview. New investments in companies like EchoStar show fresh strategy.

Icahn now works from his Miami home. He remains focused on his campaign against major index fund managers. He calls their influence a problem for shareholder activism.

Carl Icahn’s net worth now stands at a fraction of its former peak. This episode highlights the extreme volatility activist investors can face. His next moves will be closely watched on Wall Street.

Dropping this nugget your way

How much did Carl Icahn’s net worth drop?

His net worth fell by roughly $12.7 billion. It went from about $17.5 billion to $4.8 billion. This is a nearly 75% decrease in his fortune.

What caused Icahn’s wealth to plummet?

The drop followed a short-seller report from Hindenburg Research. The report accused his company of overvaluation. A resulting stock crash erased billions in market value.

What is Icahn Enterprises?

It is Icahn’s publicly traded investment fund. The firm makes activist investments in other companies. Its stock performance directly impacts Icahn’s personal wealth.

Is Carl Icahn still investing?

Yes, he is still actively managing investments. He mentioned new positions in companies like EchoStar. He also continues his campaign against major asset managers.

Where does Carl Icahn live?

He lives and works from his home in Miami, Florida. The property is on Indian Creek Island. This area is sometimes called the “Billionaire Bunker.”

What is Icahn’s main focus now?

He is advocating for regulatory changes to limit large index funds. He believes firms like BlackRock have too much voting power. He calls their collective influence a “cartel.”