The Myriad Troubles of Phil Falcone

Get our top stories

follow gawker

The Myriad Troubles of Phil Falcone

The Myriad Troubles of Phil FalconePhil Falcone, the Harbinger hedge fund billionaire with the crazy wife and a stake in the New York Times, is under federal investigation for taking money out of his hedge fund to pay a personal tax bill. Ninety-nine problems, minimum.

The current investigations centers on whether Falcone properly disclosed to his investors the fact that he'd borrowed $113 million to pay his taxes. Taxes, amirite? He also recently took out a loan based on his personal art collection, which is not generally considered to be a sign of strong financial standing, there in the "hedge fund community." (He also sold a large chunk of his NYT shares at a loss this month, leaving him with a stake under 3%.) Survey says: hard times, for Harbinger:

At its apex in mid-2008, the firm controlled nearly $26 billion. Today, after a roller-coaster ride in the markets and withdrawals by investors, that figure has dwindled to around $8 billion. Its flagship fund is off 15 percent this year, but was up 45 percent in 2009 and down 27 percent in 2008.

On a dollar-for-dollar basis, Phil Falcone's 99 problems are far more expensive than yours. He's lucky he has an entrepreneurial wife.

[NYT. Photo: Getty]

Contact Hamilton Nolan:
Discussions
Discussion now closed.
Follow harbinger on Gawker
Tomorrow's News
More Stories…