Blackstone asked to withdraw money from Falcone-WSJ
* Other high profile investors also put in notices
* Several Harbinger portfolios are suffering losses
BOSTON Nov 11 (Reuters) - Blackstone Group (BX.N) told hedge fund manager Philip Falcone that it plans to pull money out of his $ 9 billion Harbinger Capital Partners firm, the Wall Street Journal reported on Thursday.
Blackstone would be one of several high profile clients to turn their backs on Falcone who once oversaw $26 billion but is now nursing double-digit losses in several portfolios.
Blackstone, whose fund of funds group puts money with many hedge funds, declined to comment. A spokesman for Harbinger said the company does not disclose any investor information.
Investors had until October 1 to tell Harbinger if they wanted to have money returned by the end of the year. Investors can rescind redemption notices if they have a change of heart.
Goldman Sachs and the New York State Common Retirement Fund have also asked for money back.
In the last months, several investors expressed growing concern about the poor performance of several Harbinger funds and speculation mounted that redemption notices might pile up.
Falcone's Harbinger Capital Partners has lost 16 percent this year while the Special Situations Fund is off about 11 percent, investors said. The losses rank Harbinger, which managed roughly $9 billion at the end September, as one of the year's worst-performing hedge fund firms.
Some investors also said they were uneasy with Harbinger's ownership of an upstart Internet company called LightSquared, which plans to use satellites and an array of land-based cell towers to bring broadband service to every corner of the United States.
Two years ago, Harbinger hired Park Hill Group, a Blackstone subsidiary, to help find investors for its Credit Distressed Blue Line Fund. A person familiar with Blackstone said Park Hill has not done any work for Harbinger since that time. (Reporting by Svea Herbst-Bayliss; Editing by Derek Caney)
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