Bloomberg reports that Harbinger Capital Partners LLC, the $6 billion investment firm run by Philip Falcone, is facing at least $1 billion in redemptions from its main hedge fund after assets shrank by almost $2 billion in 2010, according to two investors.
The main fund had $4.25 billion in assets at the end of 2010, 30 percent less than at the start of the year due to client withdrawals and losses, according to the people, who asked not to be identified because the information is private. Investors, who can pull 25 percent of their money every quarter, have asked to redeem $1 billion, which would be paid between now and next March, said the people, who have seen the fund’s financial statement.
Those who withdrew money at the end of the first quarter were required to take more than half of their payment in non- tradable shares of LightSquared Inc., Falcone’s mobile-phone venture. As of May 26, the shares accounted for 62 percent of the fund’s assets....
Find out more at: http://www.bloomberg.com/news/2011-06-08/falcone-s-harbinger-said-to-face-1-billion-in-redemptions-as-assets-fall.html
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