Carl Icahn has had a difficult time in this market. Most reports suggest he has dropped well over 50% of his total value this year. His stake in Yahoo (YHOO) has been another recent loser, despite Icahn's success of taking a minority position on Yahoo's board of directors.

Today it was reported that Icahn bought more shares of Yahoo and upped his stake in his own hedge fund. Yahoo was up nearly nine percent on the news.

Icahn's increased stake, however, shouldn't be a surprise. He bought in at around $25. For him not to increase his stake at sub $10 would be more shocking. Moreover, it is a fact that only months ago Microsoft (MSFT) offered Yahoo $33 a share. For Yahoo to suddenly be worth less than $10 without a significant long term fundamental change, does not make sense.

Icahn's purchase shows what seasoned investors do when the market goes crazy. They simply buy more.

In Icahn's case, considering his recent major drop in overall value, it is possible that even the billionaire is leveraged heavily in the market. Where else would all this new money come from? For him to increase his risk at a time when all else are decreasing risk is a bold move that cannot be ignored. When Warren Buffett bought significant positions last month, everybody thought the worst was over. Now, Carl Icahn is reportedly buying. Shall we open the champagne bottles once again?

I wouldn't get too excited: he upped his 4.9% stake to 5.4%. For Yahoo stock to jump the way it did just shows the market is begging for any excuse to recover and hold up amid the crisis.