Carl Icahn Says He’s Going to Give ‘Seed Money’ to New Activists

Billionaire investor Carl Icahn said he plans to provide “seed money” to new activist funds as he backs other vocal investors.

Activism has proven to be rewarding for longer-term investors, Icahn said today at the Active-Passive Investor Summit in New York, dismissing most criticism that the technique is only focused on short-term gains.

Activist investors tend to buy at least 5 percent of a company’s stock and flag their intention to actively engage corporate executives and directors by disclosing their holding in a 13D filing with the U.S. Securities and Exchange Commission.