Phil Falcone's Summer Is Looking Up

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The 6 months or so have not been the best of times for hedge fund manager Phil Falcone. The returns in Harbinger's flagship have not exactly mimicked the highs of 2007, investors got their panties in a bunch when he borrowed $113 million from one of his funds (where redemptions had been frozen) in order to pay personal taxes, he had to put up his art collection as collateral to borrow even more cash, the deal that could make or break him has run into some bumps that include fucking things up in outer space and the same ingrates who gave him shit for locking up their money are getting all pissy because instead of giving them back actual cash, they're getting illiquid shares of LightSquared. What's more, construction on his Hampton's home is still months and months away from being completed and it was looking like Phil was going to have to break the bad news to the Wilbur, the Falcone's singing and dancing pig, that there'd be no getting wild at the Pink Elephant this summer. Already Wilbur had been dropping some not so subtle hints that most pigs of his talent wouldn't have stuck around this long and that he had "options," so it was a conversation Phil was not looking forward to. And then, out of nowhere, luck came a knocking on Phil's front door.

Falcone has grabbed a Hamptons summer rental for about $700,000 — a 30 percent discount from its $1 million asking price. Ironically, the East Hampton estate, developed by Haddonfield & Associates and known as Stone Meadow Farm, is one Falcone once tried to purchase. In 2009, Falcone bid on the vast 8-acre property with an 18,000-square-foot, 10-bedroom home. But a bidding war erupted, and real estate heiress/entertainer Isabel Rose swooped in to buy the pricey palace, not on the ocean, for $12.5 million. (Mariah Carey had rented it in 2008, paying $125,000 for a week.) Falcone, who lives in Bob Guccione’s former Upper East Side mansion, opted instead to build his own home in Sagaponack, sources say. But the mansion is still about six months from completion.

So, Falcone looked at summer rentals and found Stone Meadow Farm, which Rose had unofficially put on the rental market for a mind-boggling $1 million. The main house includes a spa and a media room. There are also two cottages, stone courtyards, a pool, a tennis court and horse stables.

This is not to say PF is entirely in the clear with Wil just yet, as it remains to be seen what kind of snacks will be served poolside, and who will be rubbing him down with baby oil. At a certain befleeced hedge fund manager's beach house, he's been promised his own butler and a Backstreet Boy.



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]