Philip Falcone’s Harbinger Capital Partners dove into an illiquid and risky wireless adventure- one which proved to be a big concern for his investors. The adventure brought some legal troubles for both Harbinger and Philip Falcone.
Philip Falcone is famous for betting against subprime mortgages, which made Harbinger $11 Billion in 2007. Harbinger Capital Partners Fund returned 116% that year. Harbinger was doing fine until mid 2008, but Falcone’s flagship fund lost half its value during the rest of 2008. Phil Falcone’s Harbinger returned 42% in 2009, which was much better than most funds. However, 2010 was very bad for him. He lost about 12% in 2010.
Harbinger’s assets under management reached $26 Billion at its peak, but recently went back down to around $6.5 Billion.
Falcone initiated positions in 6 stocks in the second quarter. HCP now has $27.5 Million in North American Energy (NOA), $10 Million in Southern Union (SUG), $8.5 Million of Research in Motion (RIMM), $6 Million in General Moly (GMO), $3.7 Million in CVR Energy (CVI), and about $2 Million in Trina Solar (TSL).
Check out the new stock picks and portfolios of other top hedge fund managers as of the end of the second quarter.