- Pair will exclusively advise Icahn on investment strategy
- Not an ‘opportune time to embark on large new investments’
Carl Icahn’s publicly traded holding company is renegotiating its co-manager agreements with the billionaire investor’s son Brett Icahn and his investing partner David Schechter, who oversee the firm’s Sargon Portfolio.
Icahn Enterprises LP said Monday it expects the two men to oversee a new portfolio of investments in the future. The terms of the new agreements haven’t been finalized because Icahn, Brett Icahn and Schechter agree that “current market valuations do not provide an opportune time to embark on large new investments,” according to a statement.
In the meantime, they will exclusively advise Icahn on his investment strategy and capital allocation across Icahn Enterprises’ units. The most recent co-manager agreement expired on July 31.
Corporate agitator Icahn has credited his son and Sargon portfolio co-manager Schechter with bringing him the lucrative Apple Inc. and Netflix Inc. investment ideas, and has elevated their profiles since 2014 by including them in some media interviews and public correspondence.
The relationship wasn’t always so tranquil. In 2013, regulatory filings detailed a disagreement between Icahn Sr. and his Sargon co-managers over the sale of about half his Netflix shares: they wanted to keep the stock, while Icahn chose to sell. The investor sold the last of the shares in 2015, and separately exited Apple earlier this year.
Icahn Enterprises is a publicly traded master-limited partnership that holds stakes in the billionaire activist’s investments in industries including autos, energy, metals, rail cars, casinos, food packaging, real estate and home fashion.
Icahn, 80, is worth about $20 billion, according to the Bloomberg Billionaires Index, and primarily invests his own fortune, rather than relying on money from outsiders. The corporate raider-turned activist owns about 92 percent of the publicly traded security, and is its chairman.