Investors Seek to Pull $1 Billion From Harbinger Capital Partners

Apparently, investors in Harbinger Capital Partners, the hedge fund led by Philip Falcone, have asked to pull about $1 billion of their money out of the $6 billion investment fund.

The development comes as the fund has encountered its share of woes. The satellite-wireless network project Falcone is pursuing has faced some headwinds lately. Falcone has pitched LightSquared as an alternative to cellular networks as a source for fast wireless services, but the company has been slow to gain traction. LightSquared is facing concerns from members of Congress, aviation regulators and the U.S. Department of Defense over concerns that a preliminary test of LightSquared service in New Mexico could disable nearby global-positioning-system devices. LightSquared said it has developed technical fixes that could solve the GPS interference problems.