Phil Falcone, whose hedge fund Harbinger Capital Partners LLC has invested about $3 billion in a wireless venture that is fighting to avert bankruptcy, said that investors are passing up good illiquid investments, Bloomberg News reported yestereday. Falcone's main hedge fund has about 40 percent of its assets in LightSquared Inc., a startup broadband company fighting for survival after the Federal Communications Commission said in February that it would withdraw preliminary approval for the company's network. This week, Falcone received a second weeklong extension from creditors, who are negotiating with Falcone to give up some of his equity in the venture.
