Billionaire activist Carl Icahn has begun handing some of his $29 billion investing empire for his son Brett Icahn to manage. Already, Brett, 34, appears to be a quick study and no investment may prove the point so well as the younger Icahn's well-timed stake in Netflix ahead of the firm's strong 2013 stock performance.
A Tuesday disclosure by Icahn Enterprises (IEP) -- the holding company for Carl Icahn's investment portfolio and various operating subsidiaries in the energy, casino and transportation sectors -- indicates there was a healthy debate between Carl and Brett on Netflix's valuation and when to trim their holding in the company.
Brett Icahn was the brains behind the Netflix stake and was co-managing much of the investment in a portfolio he'd been given to prove his stock-picking mettle. While the Icahns are still bullish on Netflix and remain the firm's fourth largest shareholder, the elder Icahn appears to have put his foot down and realized an $800 million profit.
In August of 2012, Carl Icahn handed Brett $3 billion to invest in companies with a market value of between $750 million and $10 billion. The portfolio, Sargon, is co-managed with an Icahn Enterprises portfolio manager David Schechter and it is supervised by Carl Icahn. Brett Icahn's investing tryout with Sargon ends when Carl Icahn turns 80 in 2016 and he is building an impressive track record.
Netflix appears to be Brett's most prominent initial investment with Sargon and it is no surprise the portfolio has grown significantly in just over a year's time. The value of the Sargon Portfolio now stands at $4.8 billion, as of a Tuesday disclosure. [It appears Sargon will also continue to be paid as if it maintained its entire Netflix stake.]
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