Hedge Fund Harbinger Capital Reveals Three New Positions ~ market folly

Thursday, January 7, 2010

Hedge Fund Harbinger Capital Reveals Three New Positions

Recently, Philip Falcone's hedge fund firm Harbinger Capital Partners made a series of disclosures that unveiled three new portfolio positions. Firstly, in a 13G filed with the SEC, Harbinger Capital Partners has disclosed a brand new position in Superior Well Services (SWSI). The filing was made due to activity on December 24th, 2009 and they now have a 5.6% ownership stake in the company with 1,714,300 shares. These new portfolio disclosures come right after we saw Harbinger unload shares of Calpine (CPN) and adjust two other positions.

Secondly, Harbinger has also filed a 13G with the SEC in regards to shares of Strategic Hotels & Resorts (BEE). The disclosure was made due to activity on December 24th, 2009 and they have a 5.6% ownership stake with 4,205,000 shares. This is yet another brand new position as they previously did not own any shares as per their SEC filings.

Lastly, we also see that Harbinger has been active in international markets. On the 21st of December 2009, the London Stock Market news service reported that Harbinger Capital held an interest of 90,909,091 ordinary shares of Sable Mining Africa Limited (AIM: SBLM) or 15.1% of the issued share capital and voting rights of the Company. Sable is a brand new holding for Harbinger and in the past we've detailed the rest of Harbinger's UK positions as well. If you're unfamiliar with our new series of tracking hedge fund positions in UK markets, we posted a preface here.

Sable Mining Africa Ltd is a small company listed on the AIM market in London. The company was re-named in November and used to be called BioEnergy Africa. It has seen a fundamental change in strategy over the last few months with a move away from bio-ethanol related assets into mining related energy assets. Sable Mining is now focused on the acquisition or investment in early stage coal and uranium assets or businesses, with a particular emphasis on Namibia, Botswana, Zimbabwe and Zambia. The company intends to be an active investor in an attempt to add value both operationally and strategically to the businesses it acquires or invests in. The company’s objective is to own entire or majority interests in suitable businesses or assets rather than holding minority investments. To facilitate the new strategy, the company undertook a fundraising, via a placement of new ordinary shares in December 2009. It is likely that Harbinger bought their shares in the placement at a price below the quoted market share price. (For cricket enthusiasts: the Chairman of Sable is ex-England slow left arm bowler, Phil Edmonds).

Taken from Google Finance, Superior Well Services "provides a range of wellsite solutions to oil and natural gas companies, primarily technical pumping services and down-hole surveying services. Technical services include technical pumping, down-hole surveying and completion, production and rental tool services. Fluid logistics services include those services related to the transportation, storage and disposal of fluids that are used in the drilling, development and production of hydrocarbons."

Strategic Hotels & Resorts "operates as a self-administered and self-managed real estate investment trust (REIT). SHR owns and asset manages upper upscale and luxury hotels that are subject to long-term management contracts. The Company conducts its operations through its direct and indirect subsidiaries, including Strategic Hotel Funding, L.L.C (SH Funding). The Company’s existing hotels are operated under brands of Fairmont, Four Seasons, Hyatt, InterContinental, Loews, Marriott, Ritz-Carlton and Westin."

For other recent maneuvers out of Falcone's hedge fund, head to our post on Harbinger's portfolio adjustments.

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