Harbinger Capital LightSquared

Harbinger Capital Invests 40% of Assets in Telecom Firm

Philip Falcone, manager of hedge fund Harbinger Capital Partners, is making a huge bet on using satellites to create a wireless network that will bring broadband to parts of the country that do not have access or have very limited access to broadband.

Nearly 40% of Harbinger Capital Partners assets (or $3 billion) is invested in LightSquared, making the telecom company the hedge fund's single largest bet. Investors have already expressed concerns about the investment.

Lately, his focus has been on using satellites to build a fourth-generation wireless network that will provide broadband to underserved parts of the country. Two of Harbinger’s funds own LightSquared, a Reston, Va.-based telecommunications company. Reuters says:

Roughly $3 billion or 40 percent of Harbinger’s assets are tied-up in LightSquared, say people familiar with the funds. Formerly known as SkyTerra Communications, the telecom company is the hedge fund’s single largest and most concentrated bet.

Some of Harbinger’s investors are concerned about Falcone putting nearly all his chips on LightSquared, according to Reuters.

“We are being paid to be more skeptical these days and we are quite frankly concerned by what he seems to be doing,” said a representative for an institutional investor.  Source

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