Falcone Says ‘No Issues’ With Harbinger Redemptions

Nov 12 2010 | 11:02am ET

Harbinger Capital Management has moved to assuage client fears following news that three major investors were pulling their money from the $9 billion firm.

Hedge fund founder Philip Falcone yesterday assured investors that Harbinger would have no difficulty meeting the redemption requests filed by the Blackstone Group, Goldman Sachs and New York State Common Retirement Fund, among others. There are “no issues,” Falcone said, and his flagship fund will not have to sell its considerable illiquid investments to meet the redemptions, the Financial Times reports.

Harbinger Capital Partners manages about $3.4 billion, and some 90% of the fund is said to be invested in wireless and telecommunications companies. It is unclear how much money clients have filed to redeem; Goldman and the New York pension have asked for a combined $161 million.

The fund is down 16% this year.

Falcone’s confidence no doubt stems in part from Harbinger’s redemption policy. Investors may withdraw only 25% of their money per quarter, limiting the amount the hedge fund has to liquidate each redemption period.

Investors have expressed concern over the flagship’s concentration of telecommunications investments as well as its performance. There have also been fears about a $113 million loan Falcone took from another Harbinger fund, which he is liquidating, to pay his personal taxes. According to the FT, Falcone has since paid that money back, earning the closing fund a substantial return.


In Depth

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.