Icahn vs Hindenburg: A Wall Street Heavyweight match for the ages

Renowned billionaire investor Carl Icahn finds himself in an unexpected position after US short-seller Hindenburg Research targeted his investment vehicle, Icahn Enterprises LP, earlier this month.

However, the 87-year-old Icahn, known as the Lone Wolf of Wall Street, is unfazed by the accusations and continues to focus on his upcoming proxy fight at gene-sequencing company Illumina Inc, a Bloomberg report has said.

In a report released on May 2, Hindenburg Research had alleged that the Icahn's stock is significantly overvalued relative to its underlying holdings and questioned its ability to sustain its high dividends, which attract investors.

The fallout from Hindenburg's report has resulted in at least a $15 billion decline in Icahn's net worth, damaging the billionaire's legendary reputation. However, it is business as usual for him.

Despite the upheaval caused by Hindenburg Research's accusations, Icahn has largely dismissed the uncomfortable questions. Icahn Enterprises issued a statement calling the report "self-serving," while Icahn himself declined to address Hindenburg and its report directly during a recent interview with Bloomberg.

While acknowledging his costly blunders, including a $9 billion loss from incorrectly betting on a market crash, Icahn has maintained his unwavering focus on his core expertise: reshaping the companies he invests in.

The past decade has witnessed a significant decline of over 60 percent in the stock price of Icahn Enterprises, while the S&P 500 has surged by approximately 153 percent. Although Icahn Enterprises has managed to compensate to some extent through dividends, providing shareholders with a modest total return of about 6 percent, it pales compared to the S&P's impressive return of around 206 percent.

Carl Icahn's reputation as a corporate raider turned activist investor has made him a figure of both awe and fear on Wall Street. His legendary battles with companies such as TWA, RJR Nabisco, Marvel, Texaco, and Blockbuster have solidified his position as a formidable corporate force. However, the recent Hindenburg report has presented Icahn with a unique and unexpected challenge, leaving some to speculate that he is experiencing unprecedented humiliation.

A Bloomberg report quoted Mark Stevens, Icahn's biographer, as suggesting that the financial blow pales in comparison to the personal impact Icahn has experienced by being outsmarted. As Icahn Enterprises plans to repurchase $500 million of its shares on the open market, Icahn is already strategising his defense. Despite the odds, Icahn's reputation as a savvy chess player who thinks several moves ahead leaves room for speculation on his next move.