Hedge Fund Harbinger Dumps More Calpine (CPN) ~ market folly

Wednesday, December 16, 2009

Hedge Fund Harbinger Dumps More Calpine (CPN)

Philip Falcone's hedge fund Harbinger Capital Partners has filed two form 4's and an amended 13D with the SEC recently to detail changes to their position in Calpine (CPN). Simply put, they've sold a lot of shares and below you'll find screenshots of the transactions taken directly from the SEC filings:

(click to enlarge)


(click to enlarge)

After all was said and done, it appears that Falcone's hedge fund still owns over 14 million shares of CPN. We also want to highlight the purpose of the transaction as identified on their amended 13D filing. According to the amendment, "On December 8, 2009 and December 9, 2009, Kelson Investments, S.ar.l., an indirect wholly owned subsidiary of the Master Fund and Special Fund ("Kelson Sarl"), sold 8.4 million and 882,248 shares, respectively. The proceeds of these sales will be used to pay off a loan made to Kelson Canada, Inc., an affiliate of Kelson Sarl and wholly owned subsidiary of the Master Fund and Special Fund. These shares were pledged as collateral for the Loan."

These sales come after Harbinger has recently sold Calpine shares (CPN), and executed an offering back in September. In terms of additional portfolio activity, Harbinger has been quite busy making SEC filings as of late and they recently adjusted two positions as well. Philip Falcone runs his $6 billion hedge fund with a focus both on distressed and equity plays and often takes concentrated positions in companies. For even more of their recent position adjustments, we previously penned a post detailing a portfolio update too.

Taken from Google Finance, Calpine is "an independent wholesale power generation company engaged in the ownership and operation of natural gas-fired and geothermal power plants in North America. The Company sells wholesale power, steam, capacity, renewable energy credits and ancillary services to its customers, including industrial companies, retail power providers, utilities, municipalities, independent electric system operators, marketers and others. The Company’s portfolio comprises two types of power generation technologies: natural gas-fired combustion turbines (primarily combined-cycle) and renewable geothermal conventional steam turbines."

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