The latest trend among high-profile investment managers? Sending back the cash. Carl Icahn, the founder of the hedge fund Icahn Capital, sent a letter to clients saying that he intends on returning their money by April and only investing with the firm’s own capital. Icahn joins a growing list of prominent mangers like Stanley Druckenmiller and Chris Shumway, who’ve given investors their money back in recent months. But considering Icahn’s fund delivered gross returns of 104 percent since it started and 8.7 percent returns already in the first two months of this year, his decision comes as a shock.
Take note, investors. If Icahn, who was known for picking winners, doesn’t want anything to do with your vast piles of money anymore, maybe there’s something the people that do want it aren’t telling you.
Icahn to Return Outside Money in Hedge Fund [DealBook/NYT]
Carl Icahn to return all his clients’ money [Reuters]