Saturday, 28 May 2016
Last updated 1 day ago
May 9 2014 | 1:52pm ET
The Icahns are back in the hedge fund business.
Billionaire investor Carl Icahn’s son, Brett, who has worked for his father for a decade, is set to launch a new hedge fund with his partner, analyst David Schechter. The new fund is expected to look much like the younger Icahn and Schechter’s $4.8 billion portfolio at Icahn Enterprises, which will own 35% of the new firm.
Brett Icahn and Schechter have returned an annualized 37% over the past four years, according to an October press release. They two have been credited with Icahn Enterprises’ successful investments in Netflix Inc. and Apple Inc.
The unnamed new firm will get $1 billion from Icahn Enterprises and may be open to outside investors, The Wall Street Journal reports. It is expected to be based in Miami.
Like his father, Brett Icahn will employ an activist strategy for the new fund. The new structure is expected to allow him and Schechter to earn more money than they do currently.
The elder Icahn returned outside capital from his hedge fund in 2011.