Friday, 25 July 2014
Last updated 11 min ago
Mar 28 2012 | 3:18am ET
The federal government's decision to block deployment of its wireless Internet venture has led Harbinger Capital Partners nearly to the brink.
The New York-based hedge fund lost 29.6% in February, Reuters reports, as the Federal Communications Commission moved to pull the plug on LightSquared, which accounts for more than half of Harbinger's investments, and Sprint Nextel Corp. abandoned a $13.5 billion deal with the company. Harbinger Capital Partners Fund II is down 26.7% in the first two months of the year; the fund lost 47% last year.
If this year's losses, like last year's, are attributable to further write-downs of LightSquared's value, the company could have a carrying value as low as $500 million, down from $3 billion.
Last month, Harbinger chief Philip Falcone said that the write-downs were the decision of the hedge fund's outside auditors, and would be only temporary, pending a turnaround in LightSquared's fortunes. LightSquared has appealed the FCC ruling, which was based on tests that found LightSquared's network interfered with global positioning systems.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…