Hedge Funds Redemptions

Harbinger investors still waiting for Q1 redemptions to be paid


Investors said they still don’t know when their payouts are coming and fear the firm will side pocket its LightSquared holdings.

Investors looking to exit Phil Falcone’s flagship Harbinger Capital Partners fund have found themselves in limbo. Despite submitting redemption requests by the firm’s March 31 first-quarter deadline, investors have not received their money back and also have not been told when they can expect it. As a result, some investors suspect that Falcone is planning to side pocket the firm’s controversial holdings of mobile telecom company LightSquared.

“With the way they’re dragging things out like this, it can’t be a good thing,” said one investor eager to redeem from the fund. “Investors are beside themselves,” he said, noting that