Billionaire investor Carl Icahn quietly outperformed Berkshire Hathaway Inc. during the first quarter.
Icahn Outpaces Buffett In Q1
Performance data tracking billionaire hedge fund portfolios, aggregated by WhaleWisdom, showed Icahn’s manager-weighted returns climbed 11.64% during the first quarter, compared with a 4.99% gain for Berkshire Hathaway Inc. Common Stock (NYSE:BRK) (NYSE:BRK).
The rebound placed Icahn among the best-performing billionaire investors of the quarter, ahead of several major hedge fund names.
But the longer-term picture looks dramatically different.
Five-Year Performance Gap Widens
Despite the strong quarter, Icahn’s five-year manager-weighted performance remains down 51.8%, one of the weakest long-term showings among major billionaire investors tracked in the data.
By contrast, Berkshire Hathaway’s five-year performance stands at positive 69.56%.
That gap highlights the stark difference between Icahn’s concentrated activist investing style and Buffett’s longer-term compounding approach centered around cash flow, profitability and durable businesses.
Icahn’s portfolio remains extremely concentrated, with nearly 99% of assets sitting in the fund’s top 10 holdings.
Berkshire’s portfolio is also heavily concentrated, though its broader diversification and lower beta have historically produced less volatility during market cycles.
Hedge Fund Rebound Continues
The latest rankings also showed several growth-oriented hedge funds staging strong recoveries.
Tiger Global Management led the billionaire group with a 12.28% quarterly gain, while Appaloosa Management posted a 9.21% quarterly return and a massive 132.84% five-year gain.
Still, the Icahn-versus-Berkshire contrast stood out.
One investor won the quarter. The other still owns the long game.
Foto: Photo Agency / Shutterstock
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