Harbinger Skirts $100M Loss On Satellite Co.

Mar 8 2011 | 5:46pm 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

Steinbrugge: Will Hedge Funds Help or Hurt During the Next Market Correction?

Sep 7 2016 | 11:55pm ET

Most investors have become accustomed to quick rebounds when markets correct, but...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...