Carl Icahn About Ready To Let Brett Call Him 'Dad' At The Office

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Junior really proved himself with that Netflix call. The days of "Sorry, Mr. Icahn, I didn't realize you were on a call" and "I'm sorry, sir, I'll make sure I keep my office more organized when investors visit" and pretending they hadn't seen each other over the weekend at his cousin's bar mitzvah may soon be over.

Billionaire activist investor Carl Icahn said on Wednesday that he sold Netflix Inc shares too soon, admitting that his son Brett and fund co-manager David Schechter were correct to believe the stock was significantly undervalued. Icahn sold 2.99 million shares of Los Gatos, California-based Netflix in October 2013 after the stock rose more than fivefold in 14 months. "What I was worried about and conservative about Netflix - and obviously I wished I hadn't been as conservative - was 'net neutrality.' which has seemed to go away," Icahn said in an appearance on CNBC, referring to the U.S. Federal Communications Commission's work to set new regulations for Internet service providers. "That one storm cloud has gone away so I agree completely now with Brett and Dave on Netflix. I wished I had bought more, but hey, look, you can't cry about making the money that we made on it," he said.

Icahn on CNBC says his son was right on Netflix, wished he bought more [Reuters]

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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]