Icahn Said to Reap Gains From $2 Billion Bet Against S&P 500

Activist investor Carl Icahn made a $2 billion wager last week on a decline in the benchmark Standard & Poor’s 500 Index, a hedge for his stock holdings that generated more than $100 million in profit as equities fell, according to two people with knowledge of the trade.

Icahn, as part of the investment, increased borrowing by almost 55 percent to $2.65 billion as of Aug. 17 from the prior week, according to a regulatory filing two days later. His funds added the almost $940 million in loans primarily to provide collateral for the bet, said the people, who asked not to be named because Icahn’s strategy and results are private.