Carl Icahn

Lore & Background

Icahn was born on February 16, 1936, in Brooklyn, New York, to an Ashkenazi Jewish family and raised in the Far Rockaway neighborhood of Queens. He graduated from Princeton University in 1957 with a B.A. in philosophy and later entered New York University School of Medicine, but dropped out after two years to join the Army Reserve. He began his career as a stockbroker for Dreyfus Corporation in 1961, and in 1968 bought a seat on the New York Stock Exchange with $150,000 of his own money and a $400,000 investment from his uncle, forming Icahn & Co.

In the 1980s, Icahn developed a reputation as a 'corporate raider' after profiting from the hostile takeover and asset stripping of Trans World Airlines. He systematically sold TWA's assets to repay money he owed, making a $469 million profit and leaving TWA with $540 million in debt. His business model involves taking large stakes in companies he believes will appreciate from changes to corporate policy, then pressuring management to make those changes. He has been involved in numerous high-profile investments and takeover attempts, including U.S. Steel, Texaco, Marvel Comics, and Yahoo!.

Reader's Guide

Carl Icahn's significance lies in his role as a pioneer of activist investing, a strategy that has become mainstream for hedge funds. By taking large stakes in companies and aggressively pushing for changes to corporate policy, he has influenced how shareholders engage with management. His career illustrates both the potential profits and controversies of this approach: he made substantial gains from companies like Texaco and TWA, but his methods—particularly the asset stripping of TWA—earned him the 'corporate raider' label. Since 2011, Icahn no longer manages money for outside clients, though investors can still invest in Icahn Enterprises. His net worth is estimated between $3.8 billion and $7 billion, placing him on the Forbes 400. His legacy is a subject of debate, reflecting the tension between shareholder value maximization and the broader impact of aggressive corporate tactics.

Did You Know?

• Icahn graduated from Princeton University in 1957 with a B.A. in philosophy after completing a senior thesis titled 'The Problem of Formulating an Adequate Explication of the Empiricist Criterion of Meaning.'
• In 1985, Icahn acquired 50% of Trans World Airlines and completely acquired the company in a leveraged buyout in 1988, later selling its London routes to American Airlines for $445 million.
• In June 1989, Icahn sold his stake in Texaco for $2 billion, making a profit of $700 million.
• In 2004, Icahn began raising $3 billion to form Icahn Partners, a hedge fund.