What turned out to be a slow year for billionaire Carl Icahn’s conglomerate Icahn Enterprises (IEP) has become decidedly worse, with IEP stock now staring at a nearly 38% loss since the start of January. Last week, shares of the activist investor’s firm came under the crosshairs of Hindenburg Research. Now, with IEP facing the glare of a federal investigation, circumstances don’t look swell for the entity.
To be sure, retail investors of IEP stock won’t take too kindly to Hindenburg, which natively arouses controversy for its short-selling specialty. Essentially, Hindenburg researches potentially overvalued companies, seeking a downward correction. At the same time, it initiates a short position on the targeted enterprises, profiting from their slide (so long as circumstances align to their intentions).
