Carl Icahn’s private hedge fund slightly extended its loss in the second quarter.
The private investment fund dropped a further 50 basis points, or 0.5 percent, in the June three-month period, bringing its total loss for the year to 8.8 percent, according to the quarterly filing of Icahn Enterprises, the publicly traded holding company.
Icahn’s investment portfolio is one of Icahn Enterprises’ seven segments — the others being energy, automotive, food packaging, real estate, home fashion, and pharma.
The investment portfolio has lost money in each of the previous six years. The investment funds do not accept outside capital.
As of the end of March, Icahn Enterprises had $3.5 billion invested. Icahn and his affiliates held $1.1 billion, or 31 percent, of the total. Just over two years ago, there was $4.9 billion invested in the funds.
In April, Icahn and affiliates redeemed $208 million from his personal interest in the Investment Fund, which was paid out on April 16, per regulatory filings.
In the second quarter, long positions provided 5.6 percentage points of gains to overall performance. “Other” added 1 percent. However, these gains were offset by the short book, which subtracted 7.1 percentage points.
“The negative performance of our investment segment’s short positions was driven primarily by net losses from broad market hedges of $147 million and net losses in the energy sector of $81 million,” the filing states. The positive performance from long positions was driven primarily by net gains from the consumer cyclical sector of $144 million, it added.
In the first half, longs accounted for 4 percent of the losses and shorts cost 6.8 points. “Other” provided 2 percentage points of gains.
As of June 30, the Investment Funds had a net long notional exposure of 2 percent, according to the filing. The long exposure was 102 percent long equity. The short exposure was 100 percent: 90 percent short equity, 1 percent short credit, and 9 percent short commodities.
The notional exposure represents the ratio of the notional exposure of the Investment Funds’ invested capital to the net asset value of the Investment Funds as of June 30, 2025, the quarterly filing explains. Of the Investment Funds’ 102 percent long exposure, 54 percent represented the fair value of the long positions and 48 percent was single-name equity forward and swap contracts.
Shares of Icahn Enterprises closed Wednesday at $9.25, down more than 80 percent since April 2023. The company was rocked at the time when Hindenburg Research published a report asserting the company was using borrowed money to pay dividends rather than profits. The company subsequently cut its dividend in half.
