Harbinger Capital Partners, the $8.7 billion distressed-debt hedge fund firm owned by Harbert Management, turned in another impressive month of returns in August.
Harbinger Capital Partners Fund I (onshore), managed by Philip Falcone, gained 4.9% in August. This brings the performance total to around 55% for the year. By comparison, Absolute Return's Distressed Index lost 0.70% in August, taking it to 4.51% for the year.
As in July, when the fund rose about 19%, profits for August were driven by the short book, whose value climbed as markets were roiled in the liquidity crisis.
Short positions in subprime mortgage