Harbinger Capital Partners, the investment firm run by Philip Falcone, will limit year-end withdrawals from its biggest hedge fund to 60 percent to 70 percent of the $3.5 billion requested by clients, according to people familiar with the matter.

The $10 billion Harbinger Capital Partners Master Fund tumbled 23 percent this year through November, after being up 43 percent as of June 30, said the people, who asked not to be identified because the information is private. New York-based Harbinger will put the fund’s private-equity holdings, about 15 investments, in a side-pocket, or segregated account, so they don’t have to be sold at distressed prices.

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