We recently noted hedge fund manager Philip Falcone's massive bet on wireless broadband. He has concentrated 40 percent of Harbinger Capital's two main funds in one company, LightSquared, a Reston, Va.-based telecom company formerly known as SkyTerra Communications.

The goals are daunting. The firm plans to use two satellites and 36,000 radio towers to bring 4G services to millions of Americans. But if these plans don't pan out, his funds will surely suffer. And that has his limited partners on edge, according to Reuters.

Several investors told Reuters said they would redeem more of their money from the funds if Falcone would permit it precisely because of the LightSquared bet. Unfortunately, a lot of his investors have seen their redemptions window restricted since the height of the financial crisis, when Falcone had to act to prevent a run; many funds did this.

This is an amazing bet with other people's money--Falcone's legacy will be determined. He will either be a hero, or a goat--a case study either way. Unfortunately, some think that LighSquared is already falling behind in the 4G race.

For more:
- here's the article

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