Earlier this week it was reported that Harbinger Capital's chief investment officer, Lawrence M. Clark Jr, had resigned to start his own fund. According to Reuters' Matthew Goldstein and Emily Chasan, several other employees will have parted ways with Phil Falcone, though their departures were less than voluntary.
While some departures were voluntary, others were part of an effort to cut the fund's staff, as the firm's assets have shrunk from a peak of $26.5 billion in 2008, sources said. Clark Baker, 49, and Eli Benson, 36, both investment analysts at Harbinger, were let go in the past few weeks, according to the sources, who asked not to be named because they were not authorized to speak to the media. Benson and Baker could not be reached for comment.
One person familiar with Harbinger suggested that some of the departures reflected a "rightsizing" of the fund and an attempt to streamline its operations.
On the bright side, it doesn't appear that Phil has had to take out any other loans or borrow cash from investors lately so things can't be all that bad.
Shrinking Harbinger Faces Staff Exits [Reuters]