Falcone’s Harbinger Capital sees rapid slump in July

August 11th, 2010
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Philip Falcone’s flagship Harbinger Capital Partners Offshore Fund I was down 10.7% as of July 15, despite the fund’s positive performance through the first half of 2010. According to Reuters, by January 15 of this year the distressed debt fund posted returns of 4.42%, and as of June 15 was still up 4.2%. The rapid and recent drop of over 10%, however, cut the portfolio’s assets under management down to $3.8 billion from $6.7 billion.

While it is unclear what caused the sudden slump, rapid and dramatic fluctuations are not unusual for Mr. Falcone and Harbinger Capital Partners’ track record. In 2007, his portfolio’s bets on American mortgage defaults and mining companies’ stocks earned him a 116% for the year, but at the end of 2008 the fund was down 22% - only to rebound once again in 2009 with gains of 46%.
See Press Release
For Detailed Investor Profiles on these Investors, click below:
HRG Group (Harbinger Capital Partners)
Related People: Omar Asali (CEO); Peter Jenson (COO); Philip Falcone*
Related Entities: Harbert Management Corporation*; Harbinger Capital Credit Distressed BlueLine Fund; Harbinger Capital Partners Master Fund; Harbinger Capital Partners Special Situations Fund LP; HRG Capital
Related Article Tags: Multi-Strategy, Long Short, Equity, Debt and Global Macro Hedge Fund News

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