Harbinger Capital Partners
Harbinger Capital Partners | Hedge Fund Notes
The following piece on Harbinger Capital Partners is being published as part of our daily effort to track hedge fund events in the industry. To review other hedge fund research please see our Hedge Fund Tracker Tool.Resource #1: (2.2.09) Philip A. Falcone, the manager of Harbinger Capital Partners, is moving toward total control of his hedge fund.
Mr. Falcone is buying out Harbert Management, the firm that backed Harbinger’s start-up, the newsletter Hedge Fund Alert reports. Harbert, an alternative-investment manager based in Birmingham, Ala., acquired a stake in Mr. Falcone’s New York firm when it provided $25 million of seed capital for Harbinger’s first fund in 2001. source
Resource #2: (11.13.08) We have just uploaded a short video debate about whether hedge funds should be blamed for the recent market collapse. View the video now by clicking here: Congressional Hearings on Hedge Funds | Video
Resource #3:
"Philip Falcone, of New York-based Harbinger Capital, rang up the incredible profit by shorting a whopping 117 million Wachovia shares at $30 back in May after his top analyst and investment chief pointed out problems with the Charlotte, N.C.-based bank's mega-billion dollar Option ARM loan portfolio.Resource #4: Harbinger Capital | 13F Hedge Fund Holdings AnalysisThe mortgages were defaulting at a fast rate which could make them worth only pennies on the dollar by year's end, the analyst's research revealed, according to sources at Harbinger. In addition, Wachovia would be socked with sky-high capital costs related to $40 billion of debt maturing in the fourth quarter, the sources added.
...
The super-profitable trade will remind some of Falcone's move earlier this year in the iron-ore sector - he made a huge profit when Cleveland Cliffs stock doubled on huge demand for the mineral.
Falcone has proven time and again that he can spot opportunity before the market sees it and gets in when the value, or lack of it, isn't yet priced into the stock. Source
Resource #5:
Harbinger Capital Partners Special Situations Fund L.P. wants to probe cash transfers among Lehman Brothers Holdings Inc. and its affiliates that occurred in the month before it filed the largest bankruptcy in history.
Harbinger, a unit of Harbert Management Corp. of Birmingham, Alabama, also wants testimony from Lehman's finance chief Ian Lowitt and to get documents explaining asset transfers among Lehman, Lehman Brothers International (Europe) and Lehman Brothers Special Financing Inc., according to Harbinger's request filed yesterday in U.S. Bankruptcy Court in New York.
Lowitt's statement accompanying Lehman's Sept. 15 Chapter 11 filing doesn't make clear how cash moved to and from the holding company to affiliates, the motion for an investigation said.
Bay Harbour Management LC, another hedge fund, challenged the court order approving the sale of Lehman's North American business to Barclays Plc. The fund had said $8 billion was improperly transferred out of the investment bank's European units prior to its collapse.
``Court filings provide no disclosure as to where the reported massive cash sweeps went, or whether LBI had recently received cash infusions from Lehman affiliates, in derogation of the rights of creditors,'' according to Harbinger's filing.
Lehman spokeswoman Monique Wise couldn't immediately comment on the Harbinger filing. Harbinger Special Situations Fund and Harbinger Capital Partners Master Fund I Ltd. said they are owed at least $250 million by Lehman Brothers Special Financing Inc.
Frozen Assets.
PricewaterhouseCoopers, the administrator for Lehman's U.K insolvency, said yesterday dozens of hedge funds that used Lehman as a prime brokerage to borrow securities and clear trades will have to wait weeks to retrieve assets frozen by the bankruptcy. Source.
Resource #6: Activist fund Harbinger Capital said it expects to hold talks with Leap Wireless International Inc (LEAP.O) about the wireless service provider's management and operations.
Harbinger, Leap's second biggest shareholder, with a 14.8 percent stake, said in a filing at the U.S. Securities and Exchange Commission that it expected to engage in discussions with Leap regarding near-term and long-term management and operations and ideas for maximizing shareholder value.
A spokesman for Harbinger declined to comment beyond the filing.
Leap spokesman Greg Lund said the company was open to talk with any shareholder including Harbinger but declined to comment on any specific discussions.
"We respect and welcome the views and opinions of all Leap stockholders," he said. "We look forward to continuing the open and productive dialogue we've had and expect to have with all of our stockholders." Source
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