Harbinger Capital

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Harbinger Capital Partners
Type Private company
Industry Financials
Founded 2001[1] in Birmingham, Alabama by Harbert Management Corporation
Headquarters New York City, New York, USA
Key people Philip Falcone (Senior Managing Director)
Website www.harbingercapital.com

Harbinger Capital Partners is a private hedge fund based in New York City, New York, founded by Philip Falcone. Falcone remains the fund's Senior Managing Director.

Overview[edit]

Harbinger is notable for betting against sub-prime mortgages in the United States and the United Kingdom, including HBOS.[2][3] It is also a major investor in LightSquared, a troubled wireless communications company.[4][5]

The firm's hedge funds include the Harbinger Capital Partners Master Fund, the Credit Distressed BlueLine Fund, Harbinger Capital Partners Special Situations Fund.[6]

According to press accounts the assets under management at Harbinger peaked at $26 Billion in 2008 and had declined to approximately $9 Billion as of 2010 due to sizeable investor redemptions with approximately 40% of that total (approximately $3.5 Billion) concentrated in investments related to building a high-speed wireless network in the United States.[7]

History[edit]

Harbinger was founded by its Senior Managing Director Philip Falcone and Harbert Management Corporation, a Birmingham, Alabama-based investment company that provided much of the original funding. Harbinger had funds under management of $26.5 billion (£13.4 billion) as of the end of June 2008.[8][9] In 2009, Harbinger acquired the ownership of its funds from Harbert, although Harbert handled administrative functions for Harbinger for a short transitional period. Also in 2009, Harbinger acquired controlling stock of the Zapata Corporation from the Glazer family and changed its name to The Harbinger Group Inc. (NYSE: HRG).[10]

Harbinger has owned large stakes in The New York Times Company, Cleveland-Cliffs, and 28% stock ownership of satellite communications company Inmarsat. The company has also owned stakes in rival satellite operators SkyTerra and Terrestar,[11] and British sugar producer Tate & Lyle.

Harbinger Capital, which owned Russell Hobbs, merged it with Spectrum Brands on June 16, 2010 for $661 million and now controls approximately 64% of the appliance maker, Spectrum.

SEC Settlement[edit]

In August of 2013, the firm reached a settlement with the SEC agreeing to pay more than $18 million and admit wrongdoing. As part of the settlement, Harbinger Senior Managing Director Philip Falcone was also barred from the securities industry for at least five years. Among the SEC's multiple allegations were that Falcone misused fund assets and diverted fund assets for personal use, that the fund engaged in redemption and other practices that favored certain investors over others and that fund attempted to conduct an improper short squeeze on the bonds of Canadian manufacturing firm, partially in retaliation against a competitor investment firm. Harbinger and Falcone largely admitted to these allegations in the settlement. [12]

July 4th 2014, the U.S. Security and Exchange Commission's Office of the Whistleblower issued a "Final Order" in matter number 2012 -81[13]ruling that rejected a claim made by an individual requesting a reward for assisting in the investigation. The SEC rejected the claim, asserting in the "Claimant did not provide information that led to the successful enforcement" and denying the application.[14]

References[edit]

External links[edit]