Harbinger Capital Partners is a private hedge fund based in New York
City, New York, founded by Philip Falcone, who is the fund's Senior
3 Top equity holdings
4 SEC settlement
5 See also
7 External links
Harbinger is a highly diversified multi-strategy hedge fund. It has
bet against sub-prime mortgages in the United States and the United
Kingdom, including HBOS. It is also a major investor in
LightSquared, a troubled wireless communications company that filed
bankruptcy in 2012, formerly known as
SkyTerra Communications Inc.
Harbinger's $3.05 billion restructuring plan gives 74 percent of
Cerberus Capital Management
Cerberus Capital Management LP, Fortress Investment
Group LLC and
JPMorgan Chase & Co., leaving Falcone with 12.5
percent of the company's equity. In March 2015, a judge approved
Harbinger Capital's restructuring plan of LightSquared, which pays off
lender Charlie Ergen, putting
LightSquared in the hands of
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.
The firm's hedge funds include the
Harbinger Capital Partners Master
Fund, the Credit Distressed BlueLine Fund, and Harbinger Capital
Special Situations Fund.
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 was founded in 2001 by its Senior Managing Director
Philip Falcone and Harbert Management Corporation, a Birmingham,
Alabama-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. In 2009, Harbinger
acquired the ownership of its funds from Harbert, although Harbert
handled administrative functions for Harbinger for a short
transitional period. Also in 2009, Harbinger acquired controlling
stock of the
Zapata Corporation from the Glazer family and changed its
name to The
Harbinger Group Inc. (NYSE: HRG). The hedge fund is
based in New York, New York.
Harbinger has owned large stakes in The New York Times Company,
Cleveland-Cliffs, and 28% stock ownership of satellite communications
company Inmarsat. The company has also owned stakes in rival satellite
SkyTerra and Terrestar, and British sugar producer Tate
Harbinger Capital was ranked 19th on the Wall Street
Journal's "The Hedge Fund 100" list, pulling in 23.85 percent in
three-year annualized returns. In 2009,
Harbinger Capital was
ranked 12th on the Wall Street Journal's "Top 100 Hedge Funds" list,
pulling in 30.48 percent in three-year annualized returns.
Harbinger Capital, which owned Russell Hobbs, merged it with Spectrum
Brands on June 16, 2010 for $661 million and now controls
approximately 64% of the appliance maker, Spectrum.
In December 2017,
Harbinger Capital Partners filed a lawsuit against
Apollo Global Management, alleging fraud over "pouring" "$2 billion
into the ill-fated wireless venture formerly known as LightSquared
Top equity holdings
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 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
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.
Harbert Management Corporation
^ a b Foley, Stephen. "Hands up if you made billions of dollars out of
the credit crisis". The Independent. Retrieved 6 August 2014.
^ a b "
Harbinger Capital Partners LLC - Investor Profile". Hedge
Tracker. Retrieved 9 April 2015.
^ HERBST-BAYLISS, SVEA (13 November 2008). "Falcone makes big bet on
food products". Reuters. Retrieved 10 April 2015.
^ Burton, Katherine. "JPMorgan, Renaissance Trail Hedge-Fund Gains in
2007". Bloomberg L.P. Retrieved 6 August 2014.
^ "Our Investor". Lightsquared. Retrieved 6 August 2014.
^ Checkler, Joseph (1 July 2014). "
LightSquared unveils plan led by
Cerberus, Fortress, JPMorgan". Denver Post. Retrieved 10 April
^ CHECKLER, JOSEPH; CORRIGAN, TOM. "Judge Approves LightSquared's
Restructuring Proposal". Wall Street Journal. Retrieved 9 April
^ Vardi, Nathan (25 November 2014). "Phil Falcone Resigns From
Harbinger Group, Collects $40.3 Million". Forbes. Retrieved 9 April
^ Goldstein, Matthew (25 November 2014). "Philip Falcone, Hedge Fund
Chief in Exile, Is Stepping Down". New York Times. Retrieved 10 April
^ Van Voris, Bob. "Harbinger Investor Suit Over Lightsquared Dismissed
by Judge" (30 March 2015). Bloomberg Business. Retrieved 9 April
Harbinger Capital Partners". Hedge Tracker. Retrieved 6 August
^ "Lisa Falcone: Who You Calling 'Wife of'?". Business Week. September
16, 2010. Retrieved 6 August 2014.
^ a b "Company Overview of
Harbinger Capital Partners LLC". Bloomberg
L.P. Retrieved 9 April 2015.
Harbinger Capital Imposes Limits on Withdrawals". Financial Times.
January 11, 2009. Retrieved 6 August 2014.
^ a b
^ Weiss, Miles (June 29, 2009). "Manchester United Owner Glazer Turns
to Falcone". Bloomberg L.P. Retrieved 6 August 2014.
^ "The Hedge Fund 100" (PDF). Wall Street Journal. Retrieved 10 April
^ "Top 100 Hedge Funds" (PDF). Wall Street Journal. Retrieved 10 April
^ Scurria, Andrew. "
Harbinger Capital Sues Apollo Global Management
LightSquared Losses". The Wall Street Journal. Retrieved December
^ Chung, Juliet; Checkler, Joseph (25 November 2014). "Falcone to
Depart Harbinger Group, Focus on Separate Company". Wall Street
Journal. Retrieved 10 April 2015.
Philip Falcone and
Harbinger Capital Agree to Settlement".
Securities & Exchange Commission. Retrieved 6 August 2014.
^ "Order Administering Cease-and-Desist Proceedings - Harbinger
Capital Partners, LLC" (PDF). Securities & Exchange Commission.
Retrieved 6 August 2014.
^ "In the Matter of
Harbinger Capital Partners, LLC,
File No. 3-14928
PRELIMINARY DETERMINATION OF THE CLAIMS REVIEW STAFF" (PDF).
Securities & Exchange Commission. Retrieved 6 August 2014.