From Precy Dumlao, Opalesque Asia – Phil Falcone’s exposure in next generation broadband company, LightSquared, has dragged down profits as the billionaire hedge fund manager’s Harbinger Capital lost 47% last year after slashing the value of his troubled wireless venture by more than 50%, it was reported.
Harbinger Capital Partners Offshore Fund I sustained the biggest losses from the Reston, Virginia-based LightSquared which is facing regulatory difficulties in its bid to provide a wireless network of high-speed data services to more than 260 million people after the Federal Communications Commission awaits the test results over reports that the service’s signals disrupt global-positional system equipment used by cars, tractors, boats and planes.
Harbinger’s spokesman Lew Phelps was quoted by Bloomberg as saying: "The decline was primarily due to a conservative adjustment in the fund's holdings of LightSquared, to be consistent with the results of work done by the fund's third- party valuation firm. The valuation takes into account uncertainty about the outcome of political issues related to alleged interference with the GPS system by LightSquared transmitters," added Phelps, who confirmed the fund's loss.
Last year, LightSquared reduced its value by 59%, highlighting the difficulties faced by Falcone in the venture. Falcon......................
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