2023-05-02 16:14:26 ET
Icahn Enterprises LP (NASDAQ: IEP) , a diversified holding company named after activist investor and majority stakeholder Carl Icahn, is under heavy pressure Tuesday following a scathing short report by Hindenburg Research. Specifically, the depository units of the master limited partnership were down by a hefty 21.2% on sky-high volume as of 3:10 p.m. ET Tuesday afternoon.
Hindenburg's report is an uncomfortable read for unitholders. In the report, Hindenburg accuses the holding company of overstating the value of certain assets on its balance sheet and operating a "Ponzi-like economic scheme" to cover its massive dividend payouts.
What's key to understand is that IEP's enormous dividend has been the primary driver behind the MLP's market-beating performance over the past decade. Armed with this insight, it's not surprising to see IEP's units crater in the wake of these allegations.
For further details see:
Why Icahn Enterprises LP Cratered Today