Philip Falcone

Philip Falcone grew up in Minnesota and played professional hockey in Sweden before entering finance. He joined Barclays Capital and later moved to the hedge fund world, eventually founding Harbinger Capital Partners. Like John Paulson and John Burbank, Falcone made large profits betting against subprime mortgage securities before the 2008 financial crisis, generating approximately $3 billion in gains. However, he then made a controversial and ultimately disastrous concentrated bet on LightSquared, a satellite broadband company seeking to offer 4G wireless internet service across the US. The investment became mired in regulatory issues related to GPS interference and ultimately failed. Falcone was also charged by the SEC with securities fraud related to preferential redemptions and market manipulation, resulting in a settlement and bar from certain investment activities. The trajectory from near-billionaire to regulatory problems made his career one of the most dramatic arcs in hedge fund history.