Monday, 30 November 2015
Last updated 2 days ago
Mar 22 2011 | 11:59am ET
Philip Falcone has repaid the controversial loan he took from one of his own Harbinger Capital Management hedge funds, a move that sparked investor grumbling and two investigations.
Harbinger on March 11 removed the lien on some of Falcone's assets that it had placed when Falcone took the $113 million loan from Harbinger's flagship Special Situations fund in October 2009. Falcone used the loan to pay off an unexpected tax bill; last year, he explained that he needed the loan because most of his own fortune is invested in Harbinger.
"It's not like I have $113 million in my checking account," he told The New York Times.
Falcone had paid back more than half of the loan by the end of last year—with Harbinger investors earning a tidy profit—and had until October 2014 to pay off the rest.
But the move still sparked a Securities and Exchange Commission probe after investors—who we barred from redeeming from Harbinger at the time—complained. Federal prosecutors were also looking into Falcone's loan, as well as into whether the hedge fund gave some investors preferential withdrawal terms.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…