Mad as hell and Icahn take it any more

 

 

“Independence is for the very few; it is a privilege of the strong.”

 

-       Friedrich Nietzsche.

 

There has been much chatter among the financial chatterati about Carl Icahn’s recent decision to hand back capital to investors in his funds. Since he’s apparently keeping some $5 billion of his own money invested, this doesn’t appear to amount to a closure as such, rather a polite de-emphasis of third party client capital. Here is what he wrote to his limited partners:

“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. Perhaps this is because over the years I have become inured to dealing with large “paper” losses for myself. During 2008 and part of 2009, unlike many other funds, we did not impose “gates” on our investors that would have prevented them from withdrawing capital from our funds if they chose to do so. Therefore investors seeking liquidity did withdraw a fair amount of cash from our funds. Additionally, rather than liquidating positions that we believed in, we infused our own new capital into our funds which provided cash for withdrawing investors. As a result, fee paying assets now constitute only 25% ($1.76 billion) of total assets in the funds of approximately $7 billion.

“While we are not forecasting renewed market dislocation, this possibility cannot be dismissed. Given the rapid market run-up over the past two years and our ongoing concerns about the 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. After careful consideration of all relevant factors, we have determined to return all fee paying capital to investors.”

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Comments

[robert]

old news.

[Novoline tricks]

Krass! Sowas hätte ich gar nicht für möglich gehalten ;-)

[fair value]

will that man ever give up?

[Novoline Tricks]

Nietzsche has seen it years before lol.-..

[Automaten Cheats]

Tjo, die Dinge können manchmal wirklich trivial sein. Danke :-)

[klicken]

Im Grunde genommen n guter Kommentar, nur könnt ihr im nächsten Post nicht ein wenig ausführlicher sein? ;)

[Book of Ra Online]

Krass, ich hätte niemals für möglich gehalten, dass dies in der Realität wirklich funktionieren kann

[Book of Ra online]

"$5 billion of his own money invested" such unreal ammounts of money...sick one

[Book Of Ra]

Krass dass sowas tatsachlich passiert ist ;)

[Strategies]

Herzlichen Dank, nun endlich habe ich das Problem in der Tiefe verstanden :)