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Last Updated: Mar 11th, 2011 - 15:30:48 |
Billionaire Carl Icahn, often considered a "maverick" U.S. investor, said on Tuesday that in anticipation of another market crisis - he will return more than a billion dollars invested in his hedge fund.
In a letter to investors, the billionaire did not say he was predicting a second financial crisis. However, "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," he said.
"While we are not forecasting renewed market dislocation, this possibility cannot be dismissed," The New York Times quoted him Tuesday as writing.
With the return of outside money, Icahn joins a growing list of hedge fund managers returning funds. Both Stanley Druckenmiller of Duquesne Capital Management and Chris Shumway of Shumway Capital Partners have made the same decision, the Times said.
In Icahn's case, he is set to return about a quarter of a $7 billion fund or about $1.76 billion in assets. Analysts said
Hedge fund researcher David Shukis at Cambridge Associates said Icahn, "clearly has enough money to do what he's continued to do without the frustrations of outside investors."
The fund was begun 2004. In 2008, it lost money, but since its start it has seen returns of 106.9 percent, AOL News reported.
"It's unfortunate because the occurrence of really outstanding investors closing their funds and focusing on their own capital is reducing the opportunity set for our clients," he said.
