Icahn Makes $120M On Falling S&P

Aug 22 2011 | 12:58pm ET

Retired hedge fund manager Carl Icahn has still got it, even if he's only managing money for himself these days.

Icahn Capital turned a handsome $120 million profit last week on a $2 billion bet against the stock market, Bloomberg News reports. The giant hedge on his stock bets helped to offset losses on such investments as Clorox Co., which the veteran buyout artist is seeking to buy for $10.2 billion, and pharmaceutical company Forest Laboratories.

Icahn boosted his borrowing by more than half to cover collateral for his bet against the Standard & Poor's 500 Index. His funds built the short position with derivatives with a face value in excess of $2 billion. The S&P proceeded to drop by 6% over the week, earning Icahn a paper profit of $120 million.

Icahn, whom Bloomberg reports became more bearish last week amidst fears about European debt and the U.S. economy, is still holding the short position.


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.