(Reuters) - Carl Icahn's son, Brett Icahn, and David Schechter are launching a hedge fund management company that will take money from outside investors, according to The Wall Street Journal, which cited people familiar with the plan.
The younger Icahn and Schechter currently manage a $4.8 billion portfolio of stocks for Carl Icahn's public company, Icahn Enterprises LP.
Brett Icahn and Schechter are responsible for some of the elder Icahn's most successful stock picks in recent years, including an investment in Netflix Inc. that has netted profits of about $1.8 billion, Carl Icahn has said.
Brett Icahn declined to comment to Reuters on the new fund.
The portfolio managed by Brett Icahn and Schechter, which they began managing in April 2010, generated annualized returns of 37 percent since its inception, Carl Icahn's company said last October.
Under the new arrangement, Brett Icahn and Schechter will own 65 percent of the fund management company and Carl Icahn will own 35 percent, the Journal report said, citing the people familiar with the plan. The elder Icahn is expected to contribute $1 billion in capital to the new company, it said.
Icahn Enterprises currently does not manage money for outside investors.
(Reporting by Jennifer Ablan; Editing by Dan Grebler)