Harbinger Falls 29% In Wake Of LightSquared Troubles

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.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR