Phil Falcone’s relationship with investors needs a marriage counselor.
The Harbinger hedge fund manager is upset at his investors for attacking him in the press, and back in 2008, he upset investors by not letting them pull out money when they wanted to.
Harbinger wouldn’t let investors have all the money they demanded in 2008.
It’s not rare for managers to gate assets, especially in times of volatility, but it’s unusual to wait to tell them you’re doing it until what’s meant to be one of the happiest times of the year.
He broke the news in an e-mail around midday on Christmas eve 2008, saying he would limit redemptions to two-thirds of investors’ requests. He put 15 illiquid private-equity investments into a segregated account called a side pocket, according to investors.
Falcone earned the nickname “Fashion Phil” back in college. Maybe now The Grinch would be more fitting.
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