By hedge fund manager standards, Harbinger Capital Partners’ Phil Falcone and his wife have been pretty high profile.
Like John Paulson, he became a billionaire several years ago by betting early that the sub-prime mortgage market would collapse. He has taken activist positions with a number of well-known companies, including The New York Times.
And earlier this year, Falcone, who managed $8 billion in his hedge funds at year-end, was celebrated for his ambitious plan to develop 4-G technology after buying SkyTerra Communications.
We also know he owns 40 percent of the Minnesota wild hockey team, bought the townhouse once owned by former Penthouse Magazine publisher Bob Guccione, and, along with his wife, were sued for sexual harassment by a former employee.
However, so far he has been able to keep one curious endeavor pretty quiet — Harbinger Group. What is Harbinger Group? It is a shell corporation that is traded on the New York Stock Exchange under the ticker HRG. Its chairman and CEO is Falcone, who gained control of the company in June 2009 after buying 52 percent of the shares. In other words, anyone — including non-accredited investors — can invest with Falcone. ....