Harbinger restricts investor withdrawals

Harbinger restricts investor withdrawals
Mon Dec 29, 2008 2:36pm GMT

NEW YORK (Reuters) - Harbinger Capital Partners is limiting year-end withdrawals from investors in its biggest hedge fund, according to Bloomberg, citing people familiar with the matter.

The investment firm, based in New York and run by Philip Falcone, is restricting redemptions in its $10 billion (6.8 billion pound) Harbinger Capital Partners Master Fund to 60 percent to 70 percent of the $3.5 billion requested by investors, the news service reported.

The fund is down 23 percent for the year through November, although at the end of June it was up 43 percent for the year, according to Bloomberg.

Harbinger will also separate the fund's private equity holdings, which make up about 15 percent of assets, into a segregated account to avoid selling them at distressed prices, Bloomberg said.

A spokesman for Harbinger declined comment.

The hedge fund industry is facing its worst year ever with heavy losses prompting large numbers of investors to request their money back.

Harbinger joins an increasing number of funds that have imposed restrictions on investor redemptions.

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