One Year Ago
»» Investors questioned Harbinger Capital
Management in an ASBPE award-winning AR cover story,
"Phil Falcone's fall to earth."
According to the introduction, "A wildly successful bet on
subprime mortgages put Harbinger on the map, but big losses
last year are forcing Phil Falcone to rebuild." Harbinger
placed more than a third of its investments in a side pocket,
which clients bemoaned because of a concentration in a handful
of positions, which seemed more like private equity and
Many of the same issues remain, mainly from difficult-to-value, illiquid telecom and cellular
positions that make up much of Harbinger's flagship fund.
Overall, Harbinger manages $9 billion, down from a peak of $24
billion in 2008.
»» A jury in Federal District Court in Brooklyn
concluded that former Bear Stearns hedge fund managers Ralph Cioffi and Matthew Tannin did not lie to
investors when they presented an upbeat assessment of their
hedge funds even as the funds they managed were plummeting in
value. Cioffi was also found not guilty of insider trading
Today, Cioffi is quietly managed his own money and plans to
move to Florida, according to the New York Observer. The SEC's civil case
continues against both Tannin and Cioffi.
Five Years Ago
»» Brett Barakett's then-$4 billion Tremblant
Capital Management prepared to launch a telecommunications and media
long/short equity fund run by Tiger cub Mark Beder. The new
fund, Tremblant-Trident Partners, was New York-based
Tremblant's fifth launch.
Today, Tiger alums don't have the same buzz. AR's
November cover story, Are the Tigers losing their stripes?,
explains that about 100 funds claim kinship with Julian
Robertson, but the DNA is running thin at a time when the
patriarch is trying to raise money.
»» Cantillon Capital Management, the New York-based
hedge fund group headed by William von Mueffling, added another
strategy to its then high-performing range of products with a
global health care sector fund. Long/short Cantillon Health,
managed by Santtu Seppala, launched quietly in September 2005
and soon managed some $120 million.
The fund grew to $350 million and generated an annualized
return of 7.32% during its lifetime, but closed in 2007 due to
a lack of shorting opportunities.
By June 2009, von Mueffling closed all Cantillon hedge funds-returning $3.5
billion to investors-and went long only. The bet reportedly
paid off: The fund is up 21% in 2010 and Cantillon's assets
have grown to more than $5 billion, according to the Wall Street Journal.