Carl Icahn, the billionaire activist fund manager, has told his investors that he and his affiliates will be putting $250m (€194.7m) into Icahn Capital's hedge funds, but has warned them that he expects about $1bn of assets to be redeemed by the end of the year.

Icahn Capital already has about $2bn of its own money in the Icahn Partners fund and Icahn Fund. The extra $250m, which he planned to put in on November 1, would bring the portfolios of the firm to about $6.95bn assets. If $1bn, or 15%, of that is redeemed this year, as he has predicted, it would represent about 20% of the roughly $5bn that external investors have put in Icahn's funds.