Falcone Sells Natural Gas Stock

Chidem Kurdas

Looks like Philip Falcone reversed course on Crosstex Energy, a natural gas producer and distributor. His Harbinger funds have been selling Crosstex shares since late July. This is surprising because in May he reportedly said at a conference that he liked Crosstex.

Last year, Harbinger Capital built a 9.6% stake in Crosstex and raised the possibility of an activist stance toward the energy firm, indicating that it may communicate with the shareholders, officers or board members about operations, governance and control.

Last month Crosstex announced that it is completing engineering studies, pipeline work and environmental permit applications for a natural gas liquids project that will expand its Louisiana fractionation facilities and extend access to these and Louisiana product markets through a new pipeline.

That was just a few days before Mr. Falcone started to sell Crosstex shares. Harbinger funds now own 7.6% of Crosstex, down two percentage points.

In May he said he expected the price to double to $18. And it has gone up high enough for Mr. Falcone to make a tidy profit on the shares he sold. But the rest of his Crosstex stake looks to lose value as slow growth tamps down on energy prices. Crosstex was down 5.3% today, fluctuating around $14.  Harbinger might continue selling.


Tags: , ,

4 Responses to “Falcone Sells Natural Gas Stock”

  1. money,investing,forex,loan,credit,credit cards,bank,banks,trading,stocks Says:

    money,investing,forex,loan,credit,credit cards,bank,banks,trading,stocks…

    […]Falcone Sells Natural Gas Stock « HedgeFundSmarts[…]…

  2. BLOK Charity Auto Says:

    BLOK Charity Auto…

    […]Falcone Sells Natural Gas Stock « HedgeFundSmarts[…]…

  3. Natural Gas Stocks Says:

    Natural Gas Stocks…

    […]Falcone Sells Natural Gas Stock « HedgeFundSmarts[…]…

  4. Falcone Shuts Down Fund Slowly « HedgeFundSmarts Says:

    […] has been selling other investments, like Crosstex Energy, a natural gas producer.  This past November HedgeFundAlert reported that Harbinger is downsizing […]

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: