Harley, William Francis, III (Mickey) of HBV Capital Management

A June 2002 article talks about Mellon Financial Corporation acquiring HBV Capital Management. The article also states that HBV has approx. $530 million in assets and names William “Mickey” Harley III as one of the founders of the company in 1999.

An October 2003 article mentions how Lyster Watson chose Mellon HBV to act as investment manager in pursuing a new event-driven strategy. The plan is to have Watson distribute the fund and Mellon to manage it.

In an article dated April 2002, it names Mr. Harley as the portfolio manager for the new multi-strategy “vehicle” being launched by HBV. The three strategies being used are: US risk arbitrage, European risk arbitrage, and distressed securities.

A media article talks about a letter that was signed by William Harley that accuses CoSine Communications Inc. for “breaching their ‘fiduciary responsibility to shareholders by allowing management to embark on such a high-risk strategic plan rather than seeking alternative options.” Mellon, as a result, wants to either buy up the company or force it to liquidate its assets. According to Harley’s letter, “we cannot ignore the fact that recouping $7.10 per share under a liquidation scenario is far more attractive than watching our investment deteriorate under the company’s current plan.”

An article says that together HBV and Ermitage Group launched the Liberty HBV Merger Arbitrage Fund Limited, a Bermuda-based single strategy fund that is soon to be listed on the Irish Stock Exchange.

In an article from January 2004, Mickey Harley says that “it was ‘premature’ to buy Parmalat’s bonds.” Investors’ opinions differ on what to do with Parmalat stock; some say there is not enough information about the company to make a decision and others say that Parmalat offers good opportunities.

An article from 2004 calls William Harley an investment “vulture.” The article describes Harley’s method as “investing in troubled companies that are in Chapter 11 or are trying to avoid it with an out-of-court restructuring.” Interestingly, the article mentions that one of Harley’s previous jobs was as a soap factory foreman.

In an article from June 2003, it mentions that Mellon HBV would be launching two new funds, one in New York and one in London, which brought the company to six separate hedge funds.

In 2004, HBV bought out much of Denny’s Restaurant’s. The restaurant was so in debt, $626 million, that the only way to not shut its doors was to be bought out by HBV. Mr. Harley now owns about 22% of Denny’s 89.7 million shares.

One thought on “Harley, William Francis, III (Mickey) of HBV Capital Management

  1. By mid-2008 all five of the funds managed by Fursa Alternative Strategies had suspended redemptions and had gone into liquidation. Most investors believe that Mickey Harley, as manager of the funds, over-leveraged and over-concentrated the funds in a few illiquid positions which subsequently performed poorly. Because of high leverage utilized by the funds, most investors expect to recover little, if anything from their investment. As of March 2010 all the Fursa’s funds are still in liquidation and resolution is unclear.

    Mickey Harley is now a Hooters Restaurant franchisee and CEO of Bannon Automotive, a company he formed away from the funds where he is seeking federal and state loans in an attempt to construct and manage a Reva automotive assembly plant in Onondaga County, New York.

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