Icahn Hedge Fund To Return Client Money

Mar 8 2011 | 11:51am ET

Carl Icahn, the legendary "corporate raider," is returning all outside investments in his hedge fund.

Icahn said his Icahn Capital, which began taking third-party money just six years ago, will return all of it next month.

"After careful consideration of all relevant factors, we have determined to return all fee-paying capital to investors," he wrote in a letter filed with the Securities and Exchange Commission today.

"While it may sound 'corny' to some, the losses that were incurred by investors in our fund in 2008 bothered me a great deal more, in many respects, than my own losses," the activist kingpin explained. "I do not wish to be responsible to limited partners through another possible market crisis."

Still, the limited partners who stuck with Icahn through his run as a hedge fund manager haven't much to complain about: The firm's return since inception has been 106.9%, and Icahn Capital is up 8.7% this year.

"Obviously, based on the past two years and two months, we are ending on what I consider to be a high note," he wrote.

The New York-based firm has about $1.76 billion in outside capital. Icahn suffered big redemptions during the financial crisis, in part because the firm did not impose withdrawal restrictions.


In Depth

Change In 'Accredited Investor' Definition Could Hurt Crowdfunding Space

Jul 25 2014 | 8:14am ET

The Securities and Exchange Commission is considering changes to its 30-year-old...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note