He was dubbed by the tabloids as a "greedy pig US billionaire" who brought Britain's HBOS to its knees. That was two years ago when hedge fund superstar Philip Falcone took a short position on the failing bank and made millions as its shares plummeted.
"Two years on, the tables have turned on the so-called midas of misery. Falcone's Harbinger Capital Partners has shrunk from managing assets valued at $26bn (£16bn) in 2008 to around $9bn now. The firm's main fund has fallen 15% in a year, according to investors, and is facing redemption calls from investors including Goldman Sachs and Blackstone Group.
Last week, Falcone, a former Barclays trader who grew up in Minnesota and played ice hockey at Harvard University, said he could handle the redemptions. But to compound his troubles, the US attorney's office in Manhattan and the Securities and Exchange Commission (SEC) are reported to be looking into whether the fund properly disclosed a $113m personal loan it made to Falcone last year and illegally gave special treatment to Falcone and some clients."
"Two years on, the tables have turned on the so-called midas of misery. Falcone's Harbinger Capital Partners has shrunk from managing assets valued at $26bn (£16bn) in 2008 to around $9bn now. The firm's main fund has fallen 15% in a year, according to investors, and is facing redemption calls from investors including Goldman Sachs and Blackstone Group.
Last week, Falcone, a former Barclays trader who grew up in Minnesota and played ice hockey at Harvard University, said he could handle the redemptions. But to compound his troubles, the US attorney's office in Manhattan and the Securities and Exchange Commission (SEC) are reported to be looking into whether the fund properly disclosed a $113m personal loan it made to Falcone last year and illegally gave special treatment to Falcone and some clients."
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