Harbinger Skirts $100M Loss On Satellite Co.

Mar 8 2011 | 6:46pm ET

Harbinger Capital Management's timing in dumping its last stake in satellite operator Inmarsat could not have been better.

The New York-based hedge fund last month renegotiated its lockup period with Inmarsat, which it once hoped to acquire and combine with its own LightSquared satellite business, dumping its remaining 14% stake on Feb. 8. The move—convincing Credit Suisse and UBS to end the lockup two months earlier—has paid off in a big way.

Inmarsat shares dropped 13% yesterday after the company warned that customers were reducing their use of satellite phone calls in favor of e-mail. Had Harbinger been forced to hold its remaining stake until April 7, it would have lost £66 million, or more than US$100 million, on the decline.

Harbinger sold the first half of its 28% stake in Inmarsat in October.


In Depth

Q&A: Fund Administration Comes To The Cloud

Jul 14 2017 | 7:23pm ET

The fund administration sector has been steadily implementing new technology, such...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Maglan Capital: Some Lessons Learned From Puerto Rico

Jul 13 2017 | 8:00pm ET

Although Maglan Capital has not been invested in Puerto Rico for more than three...