Thursday, 25 August 2016
Last updated 43 min ago
Feb 17 2011 | 5:16am ET
Segregating its most illiquid assets hasn’t helped Harbinger Capital Partners keep them from bleeding red ink.
The New York-based firm told clients this week that the $1.3 billion side-pocket housing its toughest-to-sell assets lost 19.5% last year, Bloomberg News reports; its flagship dropped 12% during 2010 while the average fund rose about 10%.
Harbinger founder Philip Falcone used the opportunity to tell investors about still further losses in the illiquid side-pocket, this one to help settle a lawsuit against its flagship. The illiquid vehicle will pay $45 million to settle the claim over Harbinger-controlled Spectrum Brands Holdings filed in 2006 by Nacco Industries; Nacco said yesterday that Harbinger would pay a total of $60 million.