Who is Falcone?
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Hedge-fund billionaire Philip Falcone and his wife, Lisa Maria, left their humble upbringings far behind, but New York society hasn’t exactly welcomed them. As the knives come out, Bethany McLean finds the couple counting on one thing-themselves. Photographs by Jonathan Becker.
www.vanityfair.com
Especially this part quote - In 1991, Falcone and a friend from Harvard pooled their cash and pledged everything they had—including personally guaranteeing bank loans—to buy a New Jersey-based hairbrush manufacturer...
...Falcone says his bank accounts were frozen and his electricity shut off. “I realized I had to start all over, and that was fine,” he says. He didn’t cut his last check to creditors until 1997.
Falcone returned to bond trading on the Street, and in 2001, Harbert Management Corporation, a family-run, Alabama-based money-management firm,
gave him $25 million to start a hedge fund that would trade “distressed” debt, meaning the bonds of companies in or close to bankruptcy...
so he was basically broke with four or five years of experience trading bonds and had gone bust in his only business ownership role when Harbert (who had just converted from a manufacturing/engineering firm to a financial firm in 1993 and therefore had yeeeaaaars of experience in the bond trading game) just found him and gave him $25 million. Something about this just doesn't add up.
... And then came the trade that made his fortune: subprime mortgages. Falcone says it took him eight or nine months to understand the complex ways in which subprime securities were constructed and to investigate all of the underlying loans.
I wonder who would have been able to instruct him in that? Sounds like a rigged game He made a first, small trade in late 2006; by mid-2007 he had a $15 billion “short” position. It was, as he says, a “very, very, very big position”—more than three times the assets he had, meaning he had borrowed money, a lot of it, to make the trade. “Once I get a conviction, I move big and quickly,” he says...
...“When did you know it was going to work?” I ask him.
“When I put the trade on,” he says with a small smile.
A look at overnight Minnesotan billionaire Philip Falcone's rise from an Iron Range kid to a powerful hedge-fund manager.
artfulliving.com
Torturing Charlie Ergen for fun and profit.
dealbreaker.com
Harbinger - Phil Falcone assets under management (13F Holdings), latest news, 13D/G filings, and investor letters provided by Insider Monkey
www.insidermonkey.com
Note the dates - Harbinger Capital was completely sold to Falcone in 2011 after original investors had pulled all their profits in 2008. By then all that was left was his own money.
On June 26, 2012, the SEC filed three separate complaints relating to securities law violations allegedly committed by Philip A. Falcone, his investment advisory firm, Harbinger Capital Partners LLC (Harbinger) and other entities and individuals. In the first complaint, the SEC charged Falcone...
www.hflawreport.com