Philip Falcone’s Harbinger Capital Partners reported yesterday for its insider transaction in Spectrum Brands Holdings, Inc. (SPB). The firm bought 2,203 shares in SPB on December 13th, at $26.69 per share. After that Harbinger took 27,759,108 shares in SPB, giving a 53.1% activist stake in the company. This is after Philip Falcone reported 27,756,905 shares in SPB on December 13th. Now SPB is trading at $26.32, down 18% year to date.
Beside Philip Falcone’s stake, several other hedge funds reported their positions in SPB in the third quarter. David E. Shaw’s D. E. Shaw had 2.52 million shares, after a 25% increase during Q3. Marc Lasry’s Avenue Capital had a smaller position of 979 thousand shares, which was unchanged since Q2.
Harbinger Group Enters Into A Purchase Instruction With Credit Suisse Securities
After Philip Falcone was investigated by the SEC, his Harbinger Group filed a SEC 13D and reported 53.1% activist stake in Spectrum Brands Holdings, Inc. (SPB) on December 13th. According to the amended 13D filing, through its wholly-owned subsidiary HGI Funding LLC, Harbinger Group entered into a purchase instruction with Credit Suisse Securities and established a trading plan “to effect purchases of up to $30 million in Shares” in Spectrum. Credit Suisse will have the authority to purchase the shares from December 13th, 2011 to May 15th, 2012, or until the Purchase Instruction is terminated ahead.
Harbinger Capital Partners “is a private investment firm specializing in event/distressed strategies. Founded in 2001 with Philip Falcone as the Chief Investment Officer, Harbinger Capital Partners seeks to invest in alpha-generating ideas that are uncorrelated to investment cycles.” according to Harbinger’s official website.
Spectrum Brands Holdings, Inc., formerly Spectrum Brands, Inc., is Harbinger Group’s consumer products segment. According to Google Finance, the company is “a global branded consumer products company. Its product categories include consumer batteries; small appliances; pet supplies; electric shaving and grooming; electric personal care; portable lighting; and home and garden control products. The Company has four segments: Global Batteries & Personal Care, which consists of its worldwide battery, shaving and grooming, personal care and portable lighting business; Global Pet Supplies, which consists of its worldwide pet supplies business; the Home and Garden Business, which consists of its home and garden control product offerings, including household insecticides, repellants and herbicides, and Small Appliances, which consists of small electrical appliances primarily in the kitchen and home product categories. On June 16, 2010, the Company completed the combination of Spectrum Brands, Inc. with Russell Hobbs Inc.”