+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Carl Icahn's energy bets are backfiring

Jan 17, 2016, 00:08 IST

A car blows up on the set of &quotRed Dawn" in Detroit, Michigan, October 19, 2009.REUTERS/Rebecca Cook

The price of oil continues to hit new lows, and it's taking a toll on some hedge fund managers that have made big bets on the energy industry.

Advertisement

Billionaire hedge fund manager Carl Icahn's energy bets are backfiring spectacularly.

Icahn invested in liquid natural gas companies Cheniere Energy and Freeport LNG in August and September of 2015.

Both have dropped significantly in price since.

Freeport is down 56.5% since Icahn's investment, while Cheniere is down 50.6%.

Advertisement

Icahn has a history of poorly-timed energy bets.

In October 2014, Icahn took a stake in Canadian energy company Talisman. The company's stock then cratered 71% before he was able to unload it in December 2014.

Energy was Icahn's third-largest sector holding as of September 2015, according to an investor presentation published on Icahn Enterprises' website:

Icahn Enterprises

Brent crude oil, the international benchmark, fell below $29 at one point on Friday.

Advertisement

Carl Icahn said in an interview December that the oil price could fall further because it started to pick up again.

"I don't think anybody thought it would be this bad because you obviously have the Middle East, Saudi Arabia just keep pumping and pumping and pumping oil," he said. "And that's a secular change that you can't do anything about. It's a political thing also."

"I think it will, it could very easily get worse. And eventually, I think it will get better, but it could get worse," he added.

We've reached out to Icahn Enterprises for comment and will update if we hear back.

NOW WATCH: Animated map shows all the major oil and gas pipelines in the US

Please enable Javascript to watch this video
You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article