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March 09, 2011 at 10:47 AM
Carl Icahn, billionaire hedge fund manager, has headed for the exits, along with other managers who have decided that the headaches of risking other people’s money are not worth it.
According to Reuters, the 75-year-old magnate has taken the step of returning outsiders’ money that was invested in his Icahn Capital Hedge Fund. That amounts to approximately $1.75 billion out of $7 billion.
Icahn’s investors received a six-paragraph-long letter, a copy of which accompanied the regulatory filing, that said in part: "While it may sound 'corny' to some, the losses that were incurred by investors in our funds in 2008 bothered me a great deal more, in many respects, than my own losses. I do not wish to be responsible to limited partners through another possible market crisis."
Icahn was proud of the fact that during the financial crisis, when many managers restricted withdrawals, he allowed his investors to withdraw their money.
The letter also warned of potential rough seas ahead in the markets: "While we are not forecasting renewed market dislocation, this possibility cannot be dismissed."
