), often it depends on the response of management. Brett is an impressive activist investor in his own right, not because he is Carl's son, but because he has demonstrated a long track record of extremely successful activist investing. The Sargon Portfolio he co-headed at Icahn at one time totaled around $7 billion and included extremely profitable investments in companies such as Netflix and Apple. The Sargon Portfolio significantly outperformed the market with an annualized return of 27%.
Icahn is not only knowledgeable about this industry, but he also has experience with this company. In March 2006, Dana declared Chapter 11 bankruptcy ,and Icahn acquired approximately $101.25 million of the company's then-$2.25 billion unsecured debt with the intention of being an "active participant" in the bankruptcy case. Icahn again became an equity owner in the fourth quarter of 2020 and filed a passive 13G on Feb. 4, 2021 with a 7.5% ownership.
There is no doubt that Icahn's two portfolio managers, Brett Icahn and Gary Hu, will make value-added directors as they not only have industry experience, but are shareholder directors – either on its own is valuable for a board member, but it is very rare to have a director with both of those attributes. So, if that is all Icahn does from an activist perspective in this investment, he should be creating significant value for shareholders.
However, it is hard to overlook the elephant in the room. Icahn built his automotive industry on acquisitions, and Dana appears to fit in very nicely in IEP's automotive business. Moreover, IEP states that its strategy in its Automotive segment is to continue to grow its commercial parts sales and its automotive service business, and it will continue to consider strategic alternatives in its automotive aftermarket parts business to maximize value.
Ken Squire is the founder and president of 13D Monitor, an institutional research service on shareholder activism, and the founder and portfolio manager of the 13D Activist Fund, a mutual fund that invests in a portfolio of activist 13D investments. Dana is owned in the fund.
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