Harbinger Down 47% As LightSquared Valuation Slashed By More Than Half

Feb 3 2012 | 10:28am ET

Harbinger Capital Partners' flagship hedge fund plummeted in value last year, falling with the fortunes of the controversial wireless Internet venture it is backing.

The New York-based hedge fund dropped 47% in 2011, Bloomberg News reports. Most of that decline can be attributed to LightSquared: Harbinger, which has invested more than half of its assets in the wireless company, wrote down LightSquared's value by 59% last year amidst questions about its interference with global positioning systems and whether it will ever get off the ground.

Harbinger's flagship has more than 60% of its assets invested in LightSquared.

"The decline was primarily due to a conservative adjustment in the fund's holdings of LightSquared, to be consistent with the results of work done by the fund's third-party valuation fund," spokesman Lew Phelps said. "The valuation takes into account uncertainty about the outcome of political issues related to alleged interference with the GPS system by LightSquared transmitters."

With LightSquared doing so badly, Harbinger could have used some help from the rest of its portfolio. It didn't get any. Its private equity portfolio, including a side-pocket, lost 31% last year, while Spectrum Brands Holding, which it used to create a permanent capital vehicle in 2010 and which it owns 54% of, lost 12% on the year.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    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…