Hedge Fund Manager Falcone Buys Stake In Palm

Hedge fund manager Philip Falcone has reported that it owns a 9.48 percent stake in Sunnyvale, Calif.-based Palm, which has reportedly put itself up for sale after its new smartphones failed to take off over the past few months.

A regulatory document filed today at the SEC reveals that Falcone’s Harbinger Capital owns 16 million shares in Palm (NSDQ: PALM). The stock, which has been wildly up and down over the past few months, closed today at $5.32, up 3.1 percent. The filing said Harbinger owned these shares as of Monday, which is the day after the report appeared that Palm had hired investment bankers to seek potential suitors.

Falcone ranks among the most successful hedge fund managers, who in recent years has been selling off his 20 percent stake in The New York Times (NYSE: NYT), and became famous for betting against subprime mortgages in 2007, Reuters reports.