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Phil Falcone Didn't Battle His Way To The Top Bunk To Sit On The Side Lines

He's gonna show ALL OF YOU.
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As many of you know, Phil Falcone is a hedge fund manager (and pig owner) currently serving a five-year time out from the securities industry. And while some investment professionals might be content to view the ban by the SEC as a vacation, Falcone is using the sabbatical to plot his comeback. Not because his reputation/legacy is at all in question, just because he wants to dance on the f*cking graves of anyone who's ever doubted him.

In an interview, Mr. Falcone said he was aiming to “go out and acquire companies and build on that,” creating value through growth in diverse industries. “I feel like, not that I have a lot to prove, but I look at this vehicle as ‘success is the best revenge,’ ” he added.

If anyone is skeptical of what the Harbinger founder is capable of, go ask his 8 older siblings, who were doing his god damn bidding by the time he was 6 months old.

Mr. Falcone faces hurdles at HC2, which has been hampered by his history and has already encountered a few setbacks. After quadrupling in price based on its debt-financed acquisitions, its stock has fallen by 40 percent this summer amid sales by a large investor. And a $195 million takeover bid that could have doubled HC2’s size was rejected recently. And the results at his first comeback, a larger public-company vehicle he started six years ago, were underwhelming. Still, Mr. Falcone is undeterred. “People kind of look at me as I am unbelievably aggressive, and I probably do make some people nervous,” Mr. Falcone, a former Harvard hockey center, said in a large conference room in his Park Avenue office for which he pays part of the rent because HC2 alone is not big enough to afford it. Explaining his motivation, he said, “I’m a competitor. I think I’m an unbelievable competitor.” He added, “As the youngest of nine kids in a three-bedroom house, I learned how not to give up.”

Any questions?

Philip Falcone, Former Head of Vast Fund, Tries a 3rd Act [Dealbook]


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]

New Harbinger Group CEO Doesn't Want To Hear The Words 'Phil' Or 'Falcone' In His Presence

And apparently the first rule of the new Harbinger Group is that there is no Harbinger group.

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.

Who Wants To Invest In Phil Falcone's New Company?

Harbinger Global Corp is coming to an exchange near you. Phil Falcone, the embattled billionaire hedge fund manager, has put together an unorthodox IPO that will see his hedge fund firm contribute assets valued at $350 million to a blank check company that will trade publicly. In the deal, a special purpose acquisition company that is expected to trade on Nasdaq and be known as Harbinger Global Corp., will acquire a majority interest in an MGM-branded hotel and casino development in Vietnam and a minority interest in an iron ore producer working in Brazil. Funds run by Falcone’s Harbinger Capital Management that are contributing the assets will get an ownership stake that could be as high as 96% in Harbinger Global and Falcone is slated to become executive chairman of the company. Falcone’s move to become closely involved in a publicly-traded company is audacious given that he is currently facing securities fraud charges from the Securities & Exchange Commission. Yeah, well, people also thought it was audacious for him to invite a burlesque dancing pig he barely knew to come and live with him and she turned out to be the best thing that ever happened to him, so.