Falcone funds begin to flag

PHILIP Falcone’s flagship portfolio lost about 17 per cent last month as LightSquared, one of the hedge fund manager’s biggest investments, faced regulatory hurdles that threaten its business plan.

Investors with the billionaire stock picker were told late last week that Falcone’s Harbinger Capital Partners Fund II had dropped 16.76 per cent in September while the Harbinger Capital Partners Special Situations Fund lost 9.65 per cent, said two investors who saw the numbers.