Coming off a banner 2013, Super-investor Carl Icahn has taken an investment stake in Hertz (HTZ). The rental car business has undergone significant consolidation, which has improved the industry fundamentals dramatically by reducing competition and rationalizing both pricing and marketing costs. Hertz is the behemoth on the block and it is very likely that the company will offload its capital intensive equipment leasing business to focus on improving returns on invest capital. At T&T Capital Management we took advantage of a sell-off it Hertz in 2013 to sell puts near its 52 week low and were able to exit with a nice profit. At current prices, I don’t see the same level of margin of safety but that isn’t a requirement when one has the heft to force management actions as Icahn does. This will be interesting to watch.