GET READY - Carl Icahn Gives His Clients All Their Money Back Rather T

[JulieW]

http://nymag.com/daily/intel/2011/03/carl_icahn_would_rather_return.html

(Apparently a man with who doesn't want to land in history as one of the guillotined: In 2010 his net worth was US$11 billion, making him the 24th richest American, and as of March 2010 the 59th richest man in the world.

Carl Icahn Gives His Clients All Their Money Back Rather Than Lose It in the Coming Crisis
3/8/11 at 12:15 PM 5Comments

He sees a bad moon rising.

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.

He wrote:
"Given the rapid market run-up over the past two years and our ongoing concerns about economic outlook, and recent political tensions in the Middle East, I do not wish to be responsible to limited partners through another possible market crisis."

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.

 

[Guest]

HAHAHAHAHAHAHAHAHAHA!

I don't think for a moment this is an act of conscience, but rather avoiding facing the firing squad.

For sure these players KNOW where the markets are headed (it's economics 101 for christ's sake!) and they want as far out of the firing line as possible.

Besides, these guys probably already made enough to retire on during the boom years in market plays and premiums. They don't need to try and double down when the market is tanking and go down with the sinking ship!

Smart play I believe. Pack up your gold and GTFO of Dodge City whilst the going is still good!

 

[Bargain Hunter]

Auspm,

I think that Mr. Icahn just doesn't want the sense of responsibility and the worried phone calls from investors after the most recent bear market he experienced. When you are already that rich why take on the extra stress of managing other people's money. If he really believed things were going to hell long-term he would have pulled his own money out too, but he is leaving his money invested in the fund.

 

[Guest]

Well that's what I'm saying. He's already secured his position during the boom and now that the market is starting to turn to liquid shit, he doesn't want to be held accountable.

For sure, he senses a looming witch hunt I think...

 

[Shaddam IV]

Presumably he is extremely personally wealthy, and it may be that he is smarter than the average fund manager and realises that he can afford to just divest himself of all of the hassle and entanglements now and simply go and enjoy life with his family in complete financial security in a big estate in the country?

 

[JulieW]

A bit more on this one.
I agree AusPM - it is economics 101 and someone like this ringing the bell should be the signal that most small time investors need to batten down the hatches.
http://news.yahoo.com/s/ac/20110309...carl_icahn_plans_to_give_investors_money_back

Part of Icahn's reluctance to compete in the investment business any longer is due to the market fluctuations since 2008, he said in his announcement. After hitting their lowest point in more than a decade in March of 2009, stocks have rebounded to almost double their previous heights. In his statement, released earlier this week, Icahn acknowledged the possibility of another market crisis, and has commented in the past that clients' losses in the market affected him more than his own

and for the doubters his avoiding regulatory control is considered a possible reason. Personally I think put all your assets in PM and cash in that order.
http://www.courierpostonline.com/article/20110309/BUSINESS/103090323/Icahn-gives-back-money

Icahn, who has built a fortune from taking stakes in well-known companies and then pressing for changes, also said he was concerned about the economic outlook and political tensions in the Middle East. Icahn's targets over the years have included Yahoo Inc., RJR Nabisco and Revlon.

"While we are not forecasting renewed market dislocation, this possibility cannot be dismissed," Icahn said in a letter to his limited partners. The letter was dated Monday and disclosed in a regulatory filing Tuesday.

Outside investors make up just 25 percent, or $1.76 billion, of the $7 billion in assets Icahn oversees. Despite losses in 2008, the funds have had returns of 106.9 percent since their inception in 2004. In the first two months of the year the funds have returned 8.7 percent.

 

[spets1]

Wow this is huge signal. People are getting off the boat. I wonder if he has stake in Gold/silver. I wonder who else is abandoning the ship.

 

[Slam]

Auspm,

I think that Mr. Icahn just doesn't want the sense of responsibility and the worried phone calls from investors after the most recent bear market he experienced. When you are already that rich why take on the extra stress of managing other people's money. If he really believed things were going to hell long-term he would have pulled his own money out too, but he is leaving his money invested in the fund.

Hey may have secured it in physical assets, but he knows supply is finite in those assets. If you push it to its limit, thats when the system comes crashing down. So better to return the money and let rich people figure it out =D.

Slam