market folly

In two separate amended 13D filings made with the SEC, Philip Falcone's hedge fund has disclosed sales of shares of both Leap Wireless (LEAP) and Solutia (SOA). Firstly, Harbinger Capital Partners now shows a 9.7% ownership stake in Leap Wireless (LEAP) with 7,484,000 shares. On July 24th, 27th, and 28th, Harbinger sold a total of 3,041,000 shares at prices ranging from $25.44 to $27.05, with the bulk of their sale coming at $26.70 and $27.05. Upon quick glance, it looks like the vast majority of the selling was done in their Special Situations Fund.

Secondly, we also see that Harbinger has sold even more shares of Solutia (SOA). We've covered this development for a while now, as we detailed their sales of SOA back in late June. Back then, they sold shares around $4.80 per share. Most recently, they've sold shares much higher at $7.50 a share on July 29th. They are now showing a 9.4% ownership stake in SOA with 11,233,573 shares owned in total. This is way down from their previous total of over 16 million shares.

In the middle of July, we also detailed Harbinger's acquisition of a Zap.com (ZPCM) stake through their already large position in Zapata (ZAP). Additionally, Harbinger has also started a new position in Morgans Hotel Group (MHGC). Last year, Harbinger was ranked #1 in the top 10 asset losers, losing 60.8% on a year over year basis as their Offshore fund finished -22.7% for 2008. We then got word that Falcone would be returning to his roots in terms of investing style and would be opening a new fund. As always, we'll continue to monitor the developments regarding their holdings. For further background on Falcone & Harbinger, check out our post on their portfolio.

Taken from Google Finance,

Leap Wireless is "a wireless communications carrier that offers digital wireless service in the United States under the Cricket brand."

Solutia is "a global manufacturer and marketer of a variety of chemical and engineered materials that are used in a range of consumer and industrial applications. The Company maintains a global infrastructure consisting of 25 manufacturing facilities, six technical centers and over 29 sales offices globally, including 14 facilities in the United States."