Phil Falcone’s Hedge Fund Sells 23 Mln Shares of Harbinger Group Inc (HRG)

Phil Falcone‘s Harbinger Capital cut its stake in Harbinger Group Inc (NYSE:HRG). A recent Form 4 filing shows that the fund now holds 50.90 million shares of the company’s stock, down from the previously owned 73.90 million, which represent  approximately a third of HRG’s common stock.

Harbinger Capital sold the 23.00 million shares for a sum of $253.00 million ($11.00 apiece) to Leucadia National Corp. (NYSE:LUK), which significantly upped its holding of Harbinger Group Inc. after the value of the earlier investment had increased.

Formerly Zapata Oil, Harbinger Group Inc (NYSE:HRG) is a holding company which acquires and grows attractive businesses in order to generate generate sustainable free cash flow. In 2011, Harbinger Group Inc. acquired the insurance company Old Mutual U.S. Life Holdings, Inc. and currently owns most of Zap.Com Corporation’s stock. Harbinger provides branded consumer products through Spectrum Brands Holdings, Inc. (NYSE:SPB) – one of its subsidiaries. After being profitable for 2 years, in 2013 the company generated a net loss result of $45.80 million. Expected to earn $0.13 per share in the first quarter of 2014, Harbinger reported an actual loss per share of $0.06, while in the next  two quarters it is estimated to generate earnings of $0.14 and $0.22 per share. The company’s stock currently trades at $12.xx, close to its 52 week high.

Earlier in February, Phil Falcone sold around 2.72 million shares of Harbinger Group Inc (NYSE:HRG) at a price of $6.50 a piece. Leon Cooperman‘s Omega Advisors is another large shareholder of Harbinger, holding 6.50 million shares worth $77.03 million.

Given 30.90 million shares worth $2.18 billion that Harbinger Capital holds in Spectrum Brands Holdings, Inc. (NYSE:SPB), roughly 70.00% of the fund’s equity portfolio represents an investment in the Consumer Goods Sector. Another 27.00% is invested in the conglomerate Harbinger Group Inc (NYSE:HRG), while the rest is spread between the Basic Materials and Financial Sectors. The fund also owns 7.03 million shares worth $40.86 million of North American Energy Partners Inc.(USA) (NYSE:NOA).

Disclosure: none

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