Icahn to return clients' money

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Billionaire hedge fund manager Carl Icahn has said he plans to return all of his clients' money, becoming the latest in a string of investors who no longer want to manage money for outsiders.

"After careful consideration of all relevant factors, we have determined to return all fee-paying capital to investors," the veteran stock-picker wrote in a letter to investors, with money due to returned in cash next month.

Icahn, known for picking winners and pushing for change at prominent corporations, has reigned as an elder statesman in the hedge fund industry for years, and news of his pulling back came as something of a shock. Since its launch in 2004, Icahn Capital has delivered gross returns of 106.9 per cent, Icahn said in the letter. He pointed to last year's gains and this year's positive returns: in the first two months of 2011, the fund returned 8.7 per cent.