Harbinger Capital Partners is a private
hedge fund
A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction, and risk management techniques in an attempt to improve performance, such as sho ...
based in
New York City
New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
,
New York
New York most commonly refers to:
* New York City, the most populous city in the United States, located in the state of New York
* New York (state), a state in the northeastern United States
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Film and television
* '' ...
, founded by
Philip Falcone
Philip A. Falcone is an American businessman and the founder of Harbinger Capital and LightSquared.ForbesProfile of Philip Falconeas of March 2013. Retrieved September 5, 2013
Early life and education
Philip Falcone grew up in Chisholm, Minneso ...
. Harbinger is a highly diversified multi-strategy hedge fund. Notable investments have included
sub-prime mortgages in the United States and the United Kingdom, such as
HBOS
HBOS plc was a banking and insurance company in the United Kingdom, a wholly owned subsidiary of the Lloyds Banking Group, having been taken over in January 2009. It was the holding company for Bank of Scotland plc, which operated the Bank ...
,
and
LightSquared
Ligado Networks, formerly known as LightSquared, is an American satellite communications company.
After restructuring, emerging from bankruptcy and modifying its network plan, the new company, Ligado Networks, launched in 2016. It operates the Sk ...
, a wireless communications company that filed bankruptcy in 2012.
History
Harbinger was founded in 2001
[ by ]Philip Falcone
Philip A. Falcone is an American businessman and the founder of Harbinger Capital and LightSquared.ForbesProfile of Philip Falconeas of March 2013. Retrieved September 5, 2013
Early life and education
Philip Falcone grew up in Chisholm, Minneso ...
and Harbert Management Corporation, a Birmingham
Birmingham ( ) is a city and metropolitan borough in the metropolitan county of West Midlands in England. It is the second-largest city in the United Kingdom with a population of 1.145 million in the city proper, 2.92 million in the West ...
, Alabama
(We dare defend our rights)
, anthem = "Alabama (state song), Alabama"
, image_map = Alabama in United States.svg
, seat = Montgomery, Alabama, Montgomery
, LargestCity = Huntsville, Alabama, Huntsville
, LargestCounty = Baldwin County, Al ...
-based investment company that provided much of the original funding. Harbinger had funds under management of $26.5 billion (£13.4 billion) as of the end of June 2008.[http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4289635.ece] In 2009, Harbinger acquired the ownership of its funds from Harbert. Also in 2009, Harbinger acquired controlling stock of the Zapata Corporation
HRG Group, Inc., formerly Harbinger Group Inc. and Zapata Corporation, is a holding company based in Rochester, New York, having originated from an oil company started by a group including future U.S. president George H. W. Bush. In 2009, it w ...
from the Glazer family
Glazer is a surname that is derived from the occupation of the glazier, or glass cutter. Some notable people with this name include:
* Avram Glazer (born 1960), American businessman and sports team owner
* Benjamin Glazer (1887–1956), Northern ...
and changed its name to The Harbinger Group Inc. (NYSE
The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District, Manhattan, Financial District of Lower Manhattan in New York City. It is by far the List of stock exchanges, world's largest s ...
: HRG). The hedge fund is based in New York, New York. The firm's hedge funds include the Harbinger Capital Partners Master Fund, the Credit Distressed BlueLine Fund, and Harbinger Capital Partners Special Situations Fund.
Harbinger has owned large stakes in The New York Times Company
The New York Times Company is an American mass media company that publishes ''The New York Times''. Its headquarters are in Manhattan, New York City.
History
The company was founded by Henry Jarvis Raymond and George Jones in New York City. T ...
, Cleveland-Cliffs
Cleveland-Cliffs Inc., formerly Cliffs Natural Resources, is a Cleveland, Ohio-based company that specializes in the mining, beneficiation, and pelletizing of iron ore, as well as steelmaking, including stamping and tooling. It is the largest f ...
, and 28% stock ownership of satellite communications company Inmarsat. The company has also owned stakes in rival satellite operators SkyTerra SkyTerra (SKYT), formerly Mobile Satellite Ventures (MSV or MSVLP), was a Reston, Virginia company that developed telecommunications systems that integrate satellite and terrestrial radio communication technologies into one system. In March 2010, t ...
and Terrestar
TerreStar Corporation (TSTR), formerly Motient Corp. (MNCP - 2000–2007) and ''American Mobile Satellite Corp.'' (AMSC - 1988–2000), was the controlling shareholder of ''TerreStar Networks Inc.'', ''TerreStar National Services, Inc.'' and ''Terr ...
, and British sugar producer Tate & Lyle
Tate & Lyle PLC is a British-headquartered, global supplier of food and beverage ingredients to industrial markets. It was originally a sugar refining business, but from the 1970s it began to diversify, eventually divesting its sugar business i ...
. The company was ranked on the ''Wall Street Journal
''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
's'' "The Hedge Fund 100" list in 2008 and 2009. According to press accounts the assets under management at Harbinger peaked at $26 billion in 2008 and had declined to approximately $9 billion as of 2010 due to sizeable investor redemptions with approximately 40% of that total (approximately $3.5 billion) concentrated in investments related to building a high-speed wireless network in the United States.
Harbinger Capital, which owned Russell Hobbs
Russell Hobbs is a British manufacturer of household appliances. Formed in 1952 by William Russell and Peter Hobbs, it became the primary kettle maker in the United Kingdom marketplace in the 1960s. Subjected to many corporate acquisitions thr ...
, merged it with Spectrum Brands
Spectrum Brands Holdings, Inc. is an American diversified company. Headquartered in Middleton, Wisconsin, it was established in 2005 as the successor company to Rayovac Corporation. It is one of the Fortune 500 companies, and among the largest of ...
on June 16, 2010 for $661 million and now controls approximately 64% of the appliance maker, Spectrum.
In November 2014, Falcone announced his resignation as chief executive and chairman from Harbinger Group HRG, whose second-biggest shareholder is Harbinger Capital. Falcone was paid a lump sum of $40.3 million upon his resignation.
In March 2015, the lawsuit accusing Falcone and Harbinger Capital Partners of "misleading investors about the firm's stake in LightSquared Inc." was dismissed. That same month, a judge approved Harbinger Capital's restructuring plan of LightSquared, which paid off lender Charlie Ergen, and put LightSquared in the hands of investors, including JP Morgan Chase. As part of the deal, Harbinger maintained 44% equity, but Falcone would no longer be involved in day-to-day operations.
As of 2015, the top equity holdings of the firm were in the shares of the following companies: Spectrum Brands Inc, Harbinger Group Inc, North American Energy Partners Inc, and EXCO Resources Inc.[
In December 2017, Harbinger Capital Partners filed a lawsuit against ]Apollo Global Management
Apollo Global Management, Inc. is an American global private-equity firm. It provides investment management and invests in credit, private equity, and real assets. As of March 31, 2022, the company had $512 billion of assets under management, ...
, alleging fraud over "pouring" "$2 billion into the ill-fated wireless venture formerly known as LightSquared
Ligado Networks, formerly known as LightSquared, is an American satellite communications company.
After restructuring, emerging from bankruptcy and modifying its network plan, the new company, Ligado Networks, launched in 2016. It operates the Sk ...
Inc."
SEC settlement
In August 2013, the firm reached a settlement with the SEC agreeing to pay more than $18 million and admit wrongdoing. As part of the settlement, Harbinger Senior Managing Director Philip Falcone was also barred from the securities industry for at least five years, but it did not prohibit him from working as an officer or director of a public company. Among the SEC's multiple allegations were that Falcone misused fund assets and diverted fund assets for personal use, that the fund engaged in redemption and other practices that favored certain investors over others, and that fund attempted to conduct an improper short squeeze on the bonds of Canadian manufacturing firm, partially in retaliation against a competitor investment firm. Harbinger and Falcone largely admitted to these allegations in the settlement.
July 4, 2014, the U.S. Security and Exchange Commission's Office of the Whistleblower issued a "Final Order" in matter number 2012 -81 ruling that rejected a claim made by an individual requesting a reward for assisting in the investigation. The SEC rejected the claim, asserting in the "Claimant did not provide information that led to the successful enforcement" and denying the application.
See also
* Harbert Management Corporation
*HRG Group
HRG Group, Inc., formerly Harbinger Group Inc. and Zapata Corporation, is a holding company based in Rochester, New York, having originated from an oil company started by a group including future U.S. president George H. W. Bush. In 2009, it w ...
References
{{reflist, 2
External links
Harbinger Capital Partners Website
*
Hedge fund firms in New York City
Investment management companies of the United States
Financial services companies established in 2001
Private equity firms of the United States