Philip Falcone and his wife, Lisa, purchased a the double-wide, 22,000-square-foot Upper East Side mansion at 14-16 E. 67th St. This house had been on and off the market for six years for a price of $59 million. The Falcone’s had just completed restoration of the townhouse which they own and which is located just a few doors away.
In its latest incarnation, the 27-room residence, with an indoor pool, ha d been marketed by Brown Harris Stevens as the “Milbank Mansion” (the original owner who combined the two homes in 1919)
Falcone’s Harbinger Capital is an activist hedge fund that made massive profits by shorting the housing market. Philip Falcone expected bonds backed by subprime mortgages to fall in value, so he profited as foreclosures hit record levels.
Harbinger also shorted Bear Stearns prior to its subsequent meltdown. On the long side, Falcone made gains in commodities and related companies, such as the Australian iron ore producer, Fortesque metals. His investments in commodities such as copper rose in value as the S&P GSCI commodity index rose steadily in the first nine months of 2007.
Together with Scott Galloway, Philip Falcone bought a 4.9 percent stake in The New York Times and won a battle to get seats on the board of directors.