Investment Approach

As of March 1, 2008, the Harbinger Capital Partners investment team was managing in excess of $20 billion (USD) through two complementary strategies: Harbinger Capital Partners Fund I focuses on distressed, stressed, troubled, undervalued or event/special situation assets and frequently co-invests with Harbinger Capital Partners Special Situations Fund, which focuses on longer term investments involving distressed/high yield debt, special situation and event driven equitites, including, control-oriented equity investments and private loans and/or notes.

We are disciplined, value investors with an emphasis on intensive credit research. Our focus is on  companies that tend to be misunderstood or under-researched by the market. Investment approaches include the following:

Restructuring/Bankruptcy

Purchase securities at a price that values the underlying investment at attractive valuations to private and public market multiples.

Turnaround

Purchase securities at a depressed price with the expectation that the business has bottomed or can be restructured out of court. Receive coupon payments and expect price appreciation to the intrinsic value of the enterprise.

Liquidation

Purchase securities at a price which is materially below our assessment of the asset values.

Event Driven

Purchase securities based on a quantitative analysis of the value of the underlying securities, timing and probability of a specific event such as an exchange offer, emergence from or announcement of bankruptcy, earnings announcement, or outcome of creditor negotiations.

Capital Structure Arbitrage

Simultaneous purchase and short sale of two or more securities of the same issuer in order to take advantage of perceived mis-pricings between an issuer’s securities or in anticipation of an event that will cause the pricing differential to narrow.

Short Sale

Sell short securities when a company’s deterioration or industry fundamentals are not reflected in current price.

Special Situations

Identify medium to long-term investments with a primarily long bias, with flexibility to use other investment strategies and types of securities when attractive opportunities arise.

Important Notices:

• This site is designed to provide basic information about our alternative investment strategies.  Nothing on the site is a recommendation that you purchase, sell or hold any security or other investment, or that you pursue any investment style or strategy.
  
  
• The password-protected portion of the site is designed for individuals and institutions that are “qualified purchasers” and “accredited investors.”  Only such individuals and institutions may access the information on this password-protected site.  All individuals and institutions requesting access will be screened to determine eligibility.