Harbinger attracted by media
Of late, Harbinger Capital Partners, the New York based hedge fund, has been gradually showing its attraction to media companies. In the past several days the fund, which, along with Firebrand Investments, already holds roughly a 20 percent stake in the New York Times Co, added economic exposure to 1.9 million NY Times shares in August through share purchases and a series of equity swaps, according to filings with the Securities and Exchange Commission.
In spring 2008, Harbinger and Firebrand increased their Class A stake in the Times to nearly 20% and managed to put two representatives on the NY Times board. Now, by entering into the swaps with an unnamed counterparty, Harbinger and Firebrand have effectively gained economic exposure to an additional 1.7 million Class A shares. The funds also bought 200,000 shares outright for USD 13 a share.
Earlier this month, Harbinger raised its stake in US's fourth-largest cable operator by subscribers - Cablevision Systems Corp - to 8.1 percent. The hedge fund reported owning 19 million shares in a regulatory filing on 21 August, up from 11.5 million as of June 30.
Harbingers interest in media companies is soaring. But what does this represent? The New York-based hedge fund, led by Philip Falcon, has said that it purchased the Cablevision shares "in the belief that the issuer's shares are undervalued." But Harbinger is also known for pushing for change in companies in which it invests.
Are these are value-based investments or is there a smell of activism in the transaction too?
- Special Reports
- By Location
- Asian Hedge Funds
- BVI Hedge Fund Services
- Bermuda Hedge Fund Services
- Canada Hedge Fund Services
- Cayman Hedge Fund Services
- Channel Islands Stock Exchange
- Future of offshore funds
- Gibraltar Hedge Fund Services
- Guernsey Hedge Fund Services
- Hedge Funds in Germany
- Hong Kong Hedge Fund Services
- Ireland Hedge Fund Services
- Isle of Man Hedge Fund Services
- Jersey Hedge Fund Services
- Jersey Private Equity Services
- Latin American Hedge Funds
- London Hedge Fund Services
- Luxembourg Hedge Fund Services
- Malta Hedge Fund Services
- Middle East Hedge Fund Services
- Singapore Hedge Fund Services
- South African Hedge Fund Services
- Spanish Hedge Funds 2008
- Switzerland Hedge Funds
- US East Coast Hedge Fund Services
- US Hedge Fund Services
- By Subject
- Conference reports
Latest Special Report
- By Location
- How to set up a hedge fund