Harbinger To Hook Up Would-Be Redeemers With Third-Party Buyers

Oct 11 2011 | 1:10pm ET

Harbinger Capital Management has an exit strategy for clients who've been stuck with the firm since it suspended or restricted redemptions three years ago.

The firm told clients yesterday that it would seek to facilitate secondary-market sales of stakes in its Special Situations fund and two side-pockets to its flagship hedge fund. New York-based Harbinger said it would put clients who want their money back in contact with "potential purchasers" and would even allow privately-negotiated transactions, subject to its approval.

"We are exploring several options in an attempt to accommodate investors," Harbinger founder Philip Falcone wrote in the letter, which was obtained by Bloomberg News.

Harbinger barred withdrawals from its Special Situations fund and created the two side pockets in the wake of the Lehman Brothers collapse. One of the side pockets holds assets that remain tied up in the Lehman bankruptcy.

Both Special Situations and Harbinger's flagship own large stakes in LightSquared, the wireless venture championed by Falcone. In recent months, some investors have received part of their redemptions in the form of in-kind distributions of LightSquared shares, which are illiquid.


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

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.