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Actionable news in CVI: CVR ENERGY Inc,

Shorting the short: Investors bet against Icahn's oil refiner after biofuel trade

FILE PHOTO -- Billionaire activist-investor Carl Icahn gives an interview on FOX Business Network's Neil Cavuto show in New York, U.S. on February 11, 2014.Brendan McDermid/File Photo

NEW YORK (Reuters) - Investors have built up a large short position in investor Carl Icahn’s oil refining company, CVR Energy (CVI.N), in the past three months, according to Reuters data, as evidence mounts that the company’s gamble on the biofuels market is going sour.

Icahn has been one of the loudest critics of the federal biofuels program.

CVR, in which Icahn holds an 82 percent stake, had about 6.5 percent short interest overall as of mid-July, up from 5.2 percent at the end of March, according to the latest data available from Nasdaq.

That would translate to about a third of the stock not held by Icahn being borrowed by investors betting the company’s value will decline. Reuters was unsuccessful in efforts to reach investors in the company.

The rising short interest in CVR comes as the company’s massive gamble on U.S. biofuels credits shows signs of going wrong.

The rising...


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