(Reuters) - Carl Icahn's Icahn Enterprises LP <IEP.O> said on Monday that the billionaire investor's son, Brett Icahn, and David Schechter were no longer co-managers of the Sargon Portfolio, and would instead stay on as consultants for now.

Brett Icahn and Schechter have been co-managing the portfolio since April 2010 and Icahn Enterprises said Monday their co-manager agreement expired on July 31.

The company said while Carl Icahn, his son and Schechter were negotiating terms of a new agreement, nothing had been finalized as all three thought "current market valuations do not provide an opportune time to embark on large new investments."

Icahn Enterprises said it expected Brett Icahn and Schechter would manage a new portfolio in the future, but for now the duo had signed consulting agreements to give Carl Icahn exclusive advice.

Carl Icahn was discussing a deal that would put the pair in charge of Icahn Enterprises when he stepped down, the New York Post reported in March, citing sources.

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 <NFLX.O>.

"For the past seven years, Brett, David and I have maintained an extremely successful and mutually beneficial portfolio management arrangement," Carl Icahn, chairman of Icahn Enterprises, said in a statement on Monday.

The Sargon Portfolio generated annualized gross returns of 36.5 percent between April 2010 and April 2015, and had assets under management worth $8 billion as of the end of the period.

Brett Icahn stands to get a one-time payment this year, equal to 7.5 percent of the portfolio's profit over a hurdle rate of return, minus certain costs, according to Icahn Enterprises' most recent annual filing.

The balance due to Brett Icahn by Icahn Enterprises and Icahn Capital at Dec. 31, 2015, would have been about $256 million if he had been 100 percent vested, the filing said.

(Reporting by Vishaka George in Bengaluru; Editing by Savio D'Souza)