Carl Icahn Injects His Personal Money Into His Hedge Fund

November 7, 2008 11:13 AM EST

Carl Icahn is pouring more money into his hedge funds as outside investors are requesting redemptions.

Investors plan to withdraw about 15% from Icahn's hedge funds valued at approximately $6.6 billion, according to regulatory filing. Icahn and the company, publicly traded Icahn Enterprises LP (NYSE: IEP), have injected $500 million into the funds since June 30.

An Icahn Enterprises spokesperson said all of the redemptions from the $6.6 billion hedge fund group will be from outside clients. The clients had $4.3 billion in the funds as of September 30th and another $2.3 billion belonged to Icahn and the publicly traded holding company, in which Icahn owns a 91% stake. Icahn's investment-management business had about $2.9 billion in cash, according to the SEC filing

Although Icahn's funds have received redemption requests, Icahn's funds have outperformed the S&P benchmark index, declining close to 17%, while the S&P fell 21%.

Icahn changed how he charges clients from a flat fee to a sliding scale of profits the fund returns, and therefore, this year the fund and Icahn will not receive any management fee.

Activist funds are having a difficult time this year as the market declines and the credit crunch have made it difficult for activists' target companies to sell themselves to other companies or the historic easy cash, private equity companies.

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