Icahn Son Plans Hedge Fund, With Father’s Backing

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.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Moore Capital PM Fired After Raucous Hamptons Party

Jul 7 2016 | 10:47pm ET

A portfolio manager for Louis Bacon’s $15 billion hedge fund Moore Capital Management...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...