Harbinger Sells Permanent Capital Shares To Pay Redemptions

Sep 30 2013 | 2:40pm ET

Harbinger Capital Management has sold more than 20 million shares of its permanent capital vehicle to meet redemptions mandated by the hedge fund's deal with the Securities and Exchange Commission.

Harbinger hedge funds sold $158 million worth of Harbinger Group shares to Leucadia National Corp., making that firm the listed vehicle's second-largest shareholder with a 13% stake. Harbinger also sold a further 5.1 million shares to other investors, according to a regulatory filing.

Harbinger sold the shares to Leucadia for $8.50 each, below the $10.06 they closed at on Friday.

Harbinger and founder Philip Falcone agreed to pay out redemptions to Harbinger clients—the hedge fund suspended redemptions several years ago—as part of a settlement with the SEC that includes an $18 million fine and a five-year ban from managing outside capital. The deal allows Falcone to continue running Harbinger Group, which he set up in 2010.


In Depth

Hedge Fund Veteran Peter Borish Talks Trading

Dec 17 2014 | 9:32am ET

Peter Borish says 2014 was “tricky” from a trading perspective. “The best...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.