Philip Falcone's Harbinger Capital Continues Calpine (CPN) Sales ~ market folly

Friday, January 15, 2010

Philip Falcone's Harbinger Capital Continues Calpine (CPN) Sales

Philip Falcone's hedge fund firm Harbinger Capital Partners has been quite busy as of late. In particular, they've been unloading Calpine shares (CPN). This time is no different as they sold even more shares just a few days ago. Per an amended 13D filing with the SEC, Harbinger Capital Partners is now showing a 6.78% ownership stake in Calpine with 30,000,000 shares remaining. Breaking it down, we see that 20 million of those shares are held in their Master Fund and 10 million are held in their Special Situations Fund. Harbinger had a great showing last year as they finished 2009 up 46.5% as we saw in our 2009 hedge fund performance numbers post. So, all their portfolio shuffling apparently has been for good reason.

While we were aware of their previous sales, we now see that Falcone's hedge fund sold over 14 million shares on the 12th of January at a price of $11.75. Below is a sceenshot taken directly from their SEC filing that details their sales of CPN over the past few months:

(click to enlarge)

So, the theme of reducing their position size in this name continues. In terms of other portfolio movement, we also reported on Harbinger's three new positions so make sure you check those out as well. Harbinger is a multi-billion dollar hedge fund ran by Philip Falcone that primarily focuses on distressed plays and special situations.

For a complete timeline of Harbinger's moves with their Calpine stake, you'll see that they recently sold shares, having previously reduced their position in December. Prior to that, they were selling even more CPN shares and executed an offering back in September. Whew. We'll have to see if this trend continues, but our guess is that they're trying to reduce their position size to a smaller allocation in their overall portfolio.

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."

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