Carl Icahn Covers Faded Choate Honor Roll Bumper Sticker With New ‘My Child Convinced Me To Invest In Apple’ One

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Carl Icahn may have dashed his son’s hope of managing other peoples’ money by the beach in Miami, but he’s still a proud papa. In between telling a company that he thinks is so well run exactly how to run things, he notes that Tim Cook and the rest of Apple have young Brett Icahn to thank for having to read the 4,000-word missive. But Brett and his partner David Schechter aren’t just keeping his dad enjoyablybusy in the sunset of his life: They’re also making him more money than he can possibly spend, even if he lives another 78 years.

The portfolio, dubbed the Sargon Portfolio, posted a gross annualized return 36.5% from its formation in April 2010 to the end of the third quarter….

As the Journal has reported, Carl Icahn has credited his son and Mr. Schechter with his investment in Netflix Inc.–which netted at least $2 billion for Icahn Enterprises by the Journal’s account–and in Apple Inc.

Carl Icahn Reveals Performance of Son Brett’s Portfolio [WSJ MoneyBeat blog]
‘Shares at Half Price’: Read Carl Icahn’s New Letter to Apple [WSJ MoneyBeat blog]
David Schechter, the Guy Behind Icahn, Behind the Other Icahn [Bloomberg]

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Carl Icahn Gives Son Four Years To Prove Himself

Ten years ago, Carl Icahn hired his son Brett to be an analyst at Icahn Enterprises and the kid didn't fuck anything up so he got to keep his job. Two year ago, Carl gave Brett and another employee, David Schechter, $300 million to invest under the "Sargon portfolio," and the guys returned 96 percent (before fees) through June. Last month, Carl tossed the duo an additional $3 billion and a contract that expires in 2016, at which time Papa Icahn will either officially Brett a worthy successor or offer to serve as a reference for his next gig. Under a 46-page legal agreement filed with federal regulators last month, Brett Icahn and Schechter will get to invest their boss’s capital in companies with stock market values between $750 million and $10 billion. The deal may free the elder Icahn, who still has final say over many aspects of the portfolio, to focus on larger targets for shareholder activism. Brett, who turns 33 this month, along with Schechter has been running $300 million for his father, who owns more than 90 percent of Icahn Enterprises LP, a holding company with $24 billion in assets including activist investing partnerships as well as the Tropicana casinos, an oil refiner and an auto-parts maker. The arrangement expires after Carl turns 80 in 2016, giving Brett the chance to both prove his mettle as a successor and develop a track record to start his own hedge fund. After hiring Brett as an investment analyst a decade ago, Icahn allocated the $300 million to his son and Schechter in April 2010 to invest in loans and securities of companies with less than $2 billion in equity value. Their investments, internally dubbed the Sargon portfolio, generated a gross cumulative gain of 96 percent by the end of June, according to a July 27 filing with the U.S. Securities and Exchange Commission...“These two guys doubled our money over the last two years,” the elder Icahn said in an interview. “You can’t complain about that.” Carl Icahn Hands Son Brett $3 Billion To Prove His Mettle [Bloomberg]