Phil Falcone: My Investors Don't Know Jack


Way back in September, Phil Falcone held a conference call with Harbinger Capital clients wherein a "defensive" Falcone "expressed dismay that some investors had been talking to the press" and strongly urged them to put a sock in it. Apparently some people either didn't get the memo or, in retaliation for Phil's decision to lock up their money and then help himself to some in order to pay personal taxes, simply chose to ignore it. For example, yesterday "several" investors told Reuters that the Harbinger Capital Partners fund finished 2010 down around 12 percent and is off about 1.2 percent through the middle of January. In the same article, it was suggested that Falcone had to decided to stop reporting his performance to HSBC to spare himself embarrassment. What did Big P have to say about all this? For one, his investors don't know shit.

When asked about the performance numbers through the middle of January and whether he had stopped sending data to HSBC to avoid being the most prominent name on the 2010 list of underachievers, the former Harvard economics graduate responded with a one-line email. "The investors are wrong and so is your rationale," he told Reuters.

Falcone tried to play nice guy with you people but apparently you don't appreciate a Mr. Nice Guy when you see one. So here's what, bubs. You wanna play hardball? Falcone's game. The next investor to talk to the press owes him 20 bucks. The one after that 50.** If you can't come up with the cheddar, you get Lisa's gladiator sandal up your ass. ATM pin numbers are accepted.

Falcone's Flagship Fund Sees More Red [Reuters]

**Or a chalupa and a Coke.


Phil Falcone Is Turning His Life Around

To put it lightly, the last couple years have been a rather dark time for Phil Falcone. Though his woes are too numerous to mention in full, they include: the adversity he's faced in getting people to believe in LightSquared; his unbelievably pissy investors, who still aren't over the time he borrowed $113 million from a gated fund to pay personal taxes, or offered to pay out redemptions in illiquid LightSquared equity; the Securities and Exchange Commission, which wants him banned from the industry for life; the woman who once offered a respite from it all, who now won't even come out of her room when she knows he's home; and, of course, the plunging returns in his once highly profitable hedge fund. It would be enough to make a grown man say 'Fuck, it. I'm done.' Put a few things in a sack, tie it to the blade of a hockey stick, and hitchhike back to Minnesota. But Phil didn't do that and now? After a merciless storm of shit that felt like it would never ease up? After long days of investors and regulators breathing down his neck and nights of having to pound on the front door because he was accidentally purposely locked out of the house? The tide feels like it's turning for Philip Falcone. Beleaguered hedge fund honcho Phil Falcone’s big bet on his own publicly traded entity, Harbinger Group, is helping to lift his troubled hedge fund, Harbinger Capital Management, out of the deep end. Falcone’s flagship fund posted returns of 10.6 percent in July and a whopping 28 percent gain in June. Of course, he's still down 5.8 percent year-to-date, and the the director of the SEC's division of enforcement wants hedge fund graduate schools to use Harbinger as a case study during the unit on "how to operate a hedge fund unlawfully," but tonight? Tonight he tells Lisa to treat herself to something nice. Tonight he tells Wilbur to pull the baby grand out of the closet, where it's sat untouched for months. Tonight his key works in the lock. Tonight we dance. Phil Helps Himself [NYP]

Phil Falcone Maintains 'Absolute Lawfulness' Of Lending Himself A Hundred Mill From Investor Fund

Remember, back in 2009, when Phil Falcone realized he'd forgotten to set aside enough cash to cover his taxes and came up with the idea to loan himself the money from a gated investor fund? And investors got all bent out of shape about it and the SEC did too? If the former was looking for some sort of an apology and the latter was looking for some show of groveling (in an attempt to avoid paying a fine/have a judge rule he can't come within 200 feet of a public company sorry), sorry, 'cause Phil's not sorry.