Hedge fund Harbinger Capital Partners Funds may be seeking to grow its fund at a fast and furious pace over the next six months, while its peers have suffered recent declines. The hedge fund, which made headlines recently for its successful
proxy fight with the New York Times Co., is looking to attract $4 billion in new investments to its $25 billion fund over the next six months, according to a Tuesday report by the
New York Post.
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Harbinger has hired Blackstone Group LP's placement agent arm Park Hill Group LLC to seek out investments from pensions and sovereign wealth funds, the report noted. As Harbinger spreads its wings, it will also look to move a little farther away from the nest, as the report said the fund is "loosening its ties" with parent Harbert Management Corp. and is in the process of building its own marketing team and is expected to move into a separate office later this year, the report added.
A Harbinger spokesman did not return calls, and Park Hill official declined to comment.
According to the Post, Harbinger's fund has logged about 30% in gains so far this year. This lies in sharp contrast to a struggling hedge fund sector, which, according to advisory firm Hennessee Group LLC's hedge fund index, has logged a 0.1% decline for the first five months of 2008.
"There is money out there [for hedge funds]," said Damien Park, founder of Hedge Funds Solutions LLC. He added that Harbinger's diversified and opportunistic investment focus, which includes the currently attractive distressed asset niche, "is probably why they may be able to get that kind of money in a short period of time."
The target of $4 billion in six months may be an ambitious goal, but rapid multibillion-dollar hedge fund raises have been done before with success. Park pointed to William Ackman's Pershing Square Capital, which in nine days raised a $2 billion special purpose vehicle in the summer of 2007. Ackman eventually invested the vehicle in discount retailer Target Corp. - Michael Rudnick
