Carl Icahn’s New Hedge Fund

You  have to give Carl Icahn credit: He is making the most of the current ardor for hedge funds. The combative financier is apparently raising a hedge fund, but his won’t be any run-of-the-mill thing. Instead, he is raising $3-billion fund and will charge investors 2.5/20 — 2.5% of assets and 20% of the performance upside.

Is that so unusual? Well, while the 20% is normal, 2.5% is high, especially for a fund of this size. After all, 2.5% of $3-billion is $75-million — not bad money for just showing up. And it gets better: He is warning people that he will go to 3/30 for new investors who come in after the fund has opened. Yoicks!

Related posts:

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  3. Blaming mutual fund buyers rather than sellers
  4. Hedge Funds Work Worst When You Need Them
  5. Nassim Taleb, the Titanic, and Hedge Funds

Comments

  1. Yikes, that is high…but if the investors buy in who is the fool?
    Scott http://www.buysidetech.com

  2. Sean says:

    Come on, guys. Carl Icahn is one of the true pioneers in the hedge fund industry. he was running and making billions from “alternative investments” decades before the term “hedge fund” ever came into existence.
    time after time, carl manages to find amazing returns and in the process give corporate america some stern lessons in “excess”.
    So, when a great like carl icahn announces he’s starting up a hedge fund, you dont bicker over a point here or there, you basically say “Thank you very much”, and you buy in as much as you can afford to.

  3. David Jende says:

    The only reason Carl Icahn does anything is to make money for himself at the expense of EVERYONE else. From hostile take overs to bidding wars. He makes millions while the average investor pays dearly. You have to have money to make money is correct. He throws his money around and talks a big game to get the market or individual stocks to do what he wants. Then he does something else and profits. He isn’t a brilliant investor; he is a bully taking everyone’s milk money.