Phil Falcone's big bet on a massive mobile, high speed wireless network continues to unnerve people. Recall that Falcone's fund bet the farm on LightSquared, a Reston, Va.-based telecom company formerly known as SkyTerra Communications. By one estimate, LightSquared accounts for nearly 40 percent of Harbinger's total assets.

One investor was concerned enough to go to the media, telling Reuters that "Falcone's flagship fund was down about 12 percent for the year as of mid-December. The firm's Special Situations Fund, which Falcone has limited withdrawals from for roughly two years, ended the year down about 12.3 percent as well."

In addition, the firm has seen some high-profile employees leave and others shown the door for "rightsizing" purposes--which is never good for confidence. It appears as though 2011 looms as a defining moment for Falcone.

He likely isn't happy that an investor went to the media. He has suffered through this issue before, publicly urging investors to stop talking to reporters.

But if his LightSquared gambit pays off, this will have a happy ending. The problem is that it will not pay off for years, and his ability to maneuver has been limited by the big bet.

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