Battling a Secretive Fund, Billionaire Carl Icahn Issues 'Open Letter' to Reach Fellow Investors
Dateline USA....
Billionaire activist investor Carl Icahn has begun a seemingly obscure legal battle that could actually have profound implications for the financial services industry--specifically, the so-called shadow banking system of secretive, unregulated hedge funds that has helped to bring the global economy to the edge of extinction.
Icahn has filed a lawsuit against a large hedge fund firm that plans to go public in an apparent attempt to avoid investor redemption demands. He has written to his fellow investors seeking their support.
Most interestingly, his letter was transmitted via PR Newswire because he has no way of knowing the identities of the other investors in the fund. PR Newswire is a press release transmission service.
A sophisticated billionaire--one of the world's most successful investors--forced to communicate by press release with fellow investors in a privately held firm. What's wrong with this picture?
Put differently, if Carl Icahn feels compelled to litigate and issue an "Open Letter" to get his money out of a fund, what chance does an ordinary investor have?
No wonder there is a growing loss of confidence in the financial system.
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