Goldman Sachs might be pulling $120 million out of Phil Falcone’s troubled hedge fund, Harbinger, because it’s down 15% year-to-date.Or it might be revenge, because Harbinger stole one of its star traders last year.
The New York Observer‘s Max Abelson has a source at Phil Falcone’s hedge fund, Harbinger, who says that Goldman is pissed at Harbinger for poaching Omar Asali.
The hedge fund manager believes that Goldman Sachs isn’t actually upset about the $113 million withdrawal for taxes, or even his returns, but is simply still miffed that he successfully poached hedge fund star Omar Asali last year.
Asali was the co-head of Goldman Sachs Hedge Fund Strategies before Harbinger nabbed him.
Of course there are more reasons that Goldman might be pulling money. Including:
- Harbinger recently disclosed to investors that it borrowed $113 million from one of his funds to to “pay personal taxes.” (The fund it borrowed from has prevented investors from pulling money out, so it’s an easy source of assets.)
- Harbinger is placing a big bet on a 4G wireless network, which some believe is a pipe dream.
Maybe Falcone’s “personal tax” move was just the last straw.