Activist investor Carl Icahn and his fund picked up a 14 and a halfpercent stake in CVR Energy (CVI.N), saying the shares wereundervalued. Now CVR is an independent petroleum refiner and andmarketer of transportation fuels.Experts say Icahn will most likely remain passive in CVR. The stock istrading extremely cheap, at around $24 now, and 2 and a half timesEBITDA. And Icahn acquired the entire position in December of 2011,when the stock was even cheaper. He acquired common stock for $19 pershare, at the highest, and options, topping off at $23.13. And Icahnisn’t the only professional investor who sees value in this company.Other smart money names such as Appaloosa Management and Third Pointbought CVR as well.And while Carl Icahn is known for his shareholder activism, it’s worthnoting he isn’t new to making passive investments, particularly in theoil and gas sector. It’s estimated that he made a 42% return last yearon El Paso, and 42.3% on Chesapeake Energy – both oil and gascompanies.
