Harbinger Capital
Encyclopedia
Harbinger Capital Partners is a private hedge fund
based in New York City
, New York
.
and Harbert Management Corporation
, a Birmingham
, Alabama
-based investment company that provided much of the original funding. Falcone before that was a former trader at Barclays Capital. Harbinger had funds under management of $26.5 billion (£13.4 billion) as of the end of June 2008. In 2009 Harbinger acquired the majority ownership of its funds from Harbert, although Harbert still handles administrative functions for Harbinger from its Birmingham and New York City offices.
Harbinger has owned large stakes in The New York Times Company
, Cleveland-Cliffs
and 28% stock ownership of satellite
communications company Inmarsat
. The company also has owned stakes in rival satellite operators SkyTerra and Terrestar, and British sugar producer Tate & Lyle
.
Harbinger is notable for betting against sub-prime mortgages in the United States
and the United Kingdom
, including HBOS
. 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.
The firm's hedge funds include the Harbinger Capital Partners Master Fund, the Credit Distressed BlueLine Fund, Harbinger Capital Partners Special Situations Fund.
Harbinger Capital, which owned all of Russell Hobbs
, who's chairman was Harbinger's director of investments, Dave Maura, completed a merger with Spectrum Brands
on June 16, 2010 for $661 million and now controls approximately 64% of the appliance maker, Spectrum.
grew up in a large family and was the youngest of nine children that lived in a 3-bedroom home. Growing up in Chisholm, Minnesota
, Falcone was a stand-out hockey player. He went on to play Varsity hockey at Harvard College
, graduating with the class of 1984, and then briefly played for Malmo, a Swedish hockey team, which ended after he sustained a career ending leg injury. In 2008, Falcone became a majority owner of the NHL's Minnesota Wild hockey team when he purchased a 40% stake of the hockey team.
In 1997, Falcone married his wife Lisa Maria Falcone. Mrs. Falcone grew up in Spanish Harlem
and has an associate's degree
from Pace University
. She is very active in philanthropic causes, including the American Museum of Natural History
and the New York City Ballet
. In 2009, the couple reportedly donated $10 million to New York City's High Line project.
Hedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
based in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
.
Background
Harbinger was founded by its Senior Managing Director Philip FalconePhilip Falcone
Philip Falcone is an American businessman and the founder of Harbinger Capital and LightSquared.-Biography:Philip Falcone grew up in Chisholm, Minnesota with nine siblings in a three-bedroom house. He attended Harvard University on financial aid and graduated with a Bachelor of Arts in Economics in...
and Harbert Management Corporation
Harbert Management Corporation
Harbert Management Corporation, based in Birmingham, Alabama, is a U.S. investment management company founded in 1993 by Raymond J. Harbert.The company has investment funds in 12 alternative asset classes in three areas of concentration: real estate, private capital, and absolute return strategies....
, a Birmingham
Birmingham, Alabama
Birmingham is the largest city in Alabama. The city is the county seat of Jefferson County. According to the 2010 United States Census, Birmingham had a population of 212,237. The Birmingham-Hoover Metropolitan Area, in estimate by the U.S...
, Alabama
Alabama
Alabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland...
-based investment company that provided much of the original funding. Falcone before that was a former trader at Barclays Capital. Harbinger had funds under management of $26.5 billion (£13.4 billion) as of the end of June 2008. In 2009 Harbinger acquired the majority ownership of its funds from Harbert, although Harbert still handles administrative functions for Harbinger from its Birmingham and New York City offices.
Harbinger has owned large stakes in The New York Times Company
The New York Times Company
The New York Times Company is an American media company best known as the publisher of its namesake, The New York Times. Arthur Ochs Sulzberger, Jr. has served as Chairman of the Board since 1997. It is headquartered in Midtown Manhattan, New York City....
, Cleveland-Cliffs
Cleveland-Cliffs
Cliffs Natural Resources , formerly Cleveland-Cliffs, is a Cleveland, Ohio business firm that specializes in the mining and beneficiation of iron ore and the mining of coal. The firm is an independent company whose shares are traded on the New York Stock Exchange. The firm has stated that it had...
and 28% stock ownership of satellite
Satellite
In the context of spaceflight, a satellite is an object which has been placed into orbit by human endeavour. Such objects are sometimes called artificial satellites to distinguish them from natural satellites such as the Moon....
communications company Inmarsat
Inmarsat
Inmarsat plc is a British satellite telecommunications company, offering global, mobile services. It provides telephony and data services to users worldwide, via portable or mobile terminals which communicate to ground stations through eleven geostationary telecommunications satellites...
. The company also has owned stakes in rival satellite operators SkyTerra and Terrestar, and British sugar producer Tate & Lyle
Tate & Lyle
Tate & Lyle plc is a British-based multinational agribusiness. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index as of 20 June 2011...
.
Harbinger is notable for betting against sub-prime mortgages in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, including HBOS
HBOS
HBOS plc is a banking and insurance company in the United Kingdom, a wholly owned subsidiary of the Lloyds Banking Group having been taken over in January 2009...
. According to press accounts the assets under management
Assets under management
Assets under management is a financial term used denote the market value of funds being managed by a financial instutition on behalf of its clients, investors, depositors, etc. This metric is a sign of size and success against competition...
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.
The firm's hedge funds include the Harbinger Capital Partners Master Fund, the Credit Distressed BlueLine Fund, Harbinger Capital Partners Special Situations Fund.
Harbinger Capital, which owned all of Russell Hobbs
Russell Hobbs
Russell Hobbs is a manufacturer of household appliances based in Failsworth, Greater Manchester, England.-Formation:After working with REME in World War II and leaving in 1947 as a Major, Bill Russell , from High Wycombe, joined Morphy Richards and helped to design the pop-up toaster, the electric...
, who's chairman was Harbinger's director of investments, Dave Maura, completed a merger with Spectrum Brands
Spectrum Brands
Spectrum Brands is a diversified company established in 2005 as the successor company to Rayovac Corporation. Rayovac had been located in Wisconsin since its conception as The French Battery Company in 1906, but then in 2004, as Spectrum Brands, located its Corporate headquarters just north of...
on June 16, 2010 for $661 million and now controls approximately 64% of the appliance maker, Spectrum.
Management background
Philip FalconePhilip Falcone
Philip Falcone is an American businessman and the founder of Harbinger Capital and LightSquared.-Biography:Philip Falcone grew up in Chisholm, Minnesota with nine siblings in a three-bedroom house. He attended Harvard University on financial aid and graduated with a Bachelor of Arts in Economics in...
grew up in a large family and was the youngest of nine children that lived in a 3-bedroom home. Growing up in Chisholm, Minnesota
Chisholm, Minnesota
As of the census of 2000, there were 4,960 people, 2,178 households, and 1,287 families residing in the city. The population density was 1,129 people per square mile . There were 2,375 housing units at an average density of 540/sq mi...
, Falcone was a stand-out hockey player. He went on to play Varsity hockey at Harvard College
Harvard College
Harvard College, in Cambridge, Massachusetts, is one of two schools within Harvard University granting undergraduate degrees...
, graduating with the class of 1984, and then briefly played for Malmo, a Swedish hockey team, which ended after he sustained a career ending leg injury. In 2008, Falcone became a majority owner of the NHL's Minnesota Wild hockey team when he purchased a 40% stake of the hockey team.
In 1997, Falcone married his wife Lisa Maria Falcone. Mrs. Falcone grew up in Spanish Harlem
Spanish Harlem
East Harlem, also known as Spanish Harlem and El Barrio, is a section of Harlem in the northeastern part of the New York City borough of Manhattan. East Harlem is one of the largest predominantly Latino communities in New York City. It includes the area formerly known as Italian Harlem, in which...
and has an associate's degree
Associate's degree
An associate degree is an undergraduate academic degree awarded by community colleges, junior colleges, technical colleges, and bachelor's degree-granting colleges and universities upon completion of a course of study usually lasting two years...
from Pace University
Pace University
Pace University is an American private, co-educational, and comprehensive multi-campus university in the New York metropolitan area with campuses in New York City and Westchester County, New York.-Programs:...
. She is very active in philanthropic causes, including the American Museum of Natural History
American Museum of Natural History
The American Museum of Natural History , located on the Upper West Side of Manhattan in New York City, United States, is one of the largest and most celebrated museums in the world...
and the New York City Ballet
New York City Ballet
New York City Ballet is a ballet company founded in 1948 by choreographer George Balanchine and Lincoln Kirstein. Leon Barzin was the company's first music director. Balanchine and Jerome Robbins are considered the founding choreographers of the company...
. In 2009, the couple reportedly donated $10 million to New York City's High Line project.