Readers following the tribulations of The New York Times are likely to know the names of Mexican billionaire Carlos Slim Helu, a big shareholder in the company, and David Geffen, a big would-be shareholder.
Staying resolutely in the shadows, and out of the pages of the Times, is Raymond J. Harbert.
Harbert was the main investor in Harbinger Capital Partners, a hedge fund that bought up 20 percent of the newspaper company’s class A (non-family) stock in 2007. Harbinger’s holdings exceed those of Slim, who holds 16 percent.
Raymond J. Harbert
Geffen recently proposed buying Harbinger’s stake, according to Fortune. His efforts yielded a flurry of publicity for Geffen, with barely a mention of Harbert.
As Portfolio noted in a profile last year, “Harbert tries hard not to draw attention to himself or his money.”
When it comes to the Times, Harbert would have a lot less money to not draw attention to. Times shares have lost three quarters of their value since Harbinger’s acquisitions.
But it appears that Harbert may have quietly stepped away from the newspaper biz.
An SEC filing in March reported an equity swap by Harbert and family-owned companies, resulting in their giving up ownership interest in Times shares.
Market Folly, a blog that tracks hedge funds, reports that Harbinger’s senior manager, Philip Falcone, is buying out Harbert’s ownership of Harbinger.
Nevertheless, a call today to the phone number listed on Harbinger’s web site was answered, “Good morning, Harbert.” (We were referred to a publicist and will update this post if we get a response.)
It’s all a bit of a tangle, since hedge funds don’t have to release information about their internal dealings and the Times has stayed mum. (Try searching for “Raymond J. Harbert” on the Times web site.)
Like Times Chairman Arthur Sulzberger Jr., Harbert was born to the silver spoon. His father, John, headed a conglomerate that built highways and power plants. The company made millions in 1981, when it sold Kentucky coal mines to Standard Oil.
After John Harbert died in 1995, his son took over the family business. He transformed Harbert Corporation into Harbert Management, an investment firm.
In 2000, he decided to launch a hedge fund, and recruited Falcone, a hard-charging former pro hockey player, to head it. It was Falcone’s idea to buy stock in the Times, according to Portfolio.
The hedge fund girded for a proxy fight, but the Times took a less confrontational stance, agreeing to add two board seats to be occupied by Harbinger nominees.
One of the hedge fund’s representatives on the Times board, Scott Galloway, has suggested that Google should buy the Harbert stake, but Google passed on the opportunity, Fortune reported.
Harbinger, meanwhile, is focusing on more tangible assets. It’s now trying to buy the bankrupt American copper miner, Asarco.
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