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

Firm Focus: Sustainable Insight Capital Bullish On ESG

Aug 12 2014 | 9:18am ET

Bruce Kahn spent over 15 years as a research scientist/consultant on environmental...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note