Cerberus on the ropes

[TX Solder]

BOSTON (Reuters) - Cerberus Capital Management has been swamped with redemption requests with the Wall Street Journal reporting that investors are asking to pull out $5.5 billion or 71 percent of assets from its hedge funds.

Cerberus last month tried to entice investors into staying with the firm, but found that its clients overwhelmingly wanted to leave, the newspaper reported.

"We have been surprised by this response," Cerberus chief Stephen Feinberg and co-founder William Richter wrote in a letter delivered to clients late on Thursday, according to the newspaper.

A spokesman for the firm was not immediately available for comment.

The bulk of investors elected to put their money into a fund that will liquidate hard-to-sell assets over time.

The news comes as several prominent hedge fund managers have closed their funds and as investors are less willing to leave their money locked up in potentially risky hedge funds.

Last year, when the average hedge fund lost 19 percent, Partners lost 24.5 percent on investments.

http://mobile.reuters.com/mobile/m/FullArticle/p.plm/CTOP/ntopNews_uUSTRE57R4MR20090828

[Berg]

So...are we looking at a break up of the Remington/Bushmaster/DPMS/whateverelsetheyboughtgunrelated partnerships to raise money?

[freakshow10mm]

Could be a real possibility.

[Combat_Diver]

Isn't Marlin/H&R/NEF part of them also?

CD

[freakshow10mm]

Yes, I think so.

From Wikipedia

Firearms - Acquired Bushmaster Firearms, Inc., from Windham, Maine native Dick Dyke for an undisclosed sum in April 2006, and purchased Remington Arms in April 2007. Under Cerberus direction, Bushmaster Firearms acquired Cobb Manufacturing, a well-respected manufacturer of large-caliber tactical rifles in August 2007. Cerberus also acquired DPMS Panther Arms December 14, 2007.[22][23] Remington Arms acquired Marlin Firearms in January 2008.[24][25]

Marlin owns H&R 1871 Inc which owns NEF.

[jagdkommando]

I think I just read that they just acquired Dakota Arms.

[freakshow10mm]

Yes, somebody just bought it I couldn't remember.

[FromMyColdDeadHand]

It made me nervous when I saw Cerebus buying a bunch of gun makers, and specifically DPMS and Bushmaster. While there is a continium between Money Whores and Gun Guys, these guys pegged the Money Whore end. Having two big commercial AR makers being led by people that might give into an AWB just to get some extra billions for their Chrysler was not a good idea to me. Hopefully they sell and split them off. Let's have Magpul by Remington ;).

[Mjolnir]

I KNEW it would come to this. One of their execs was an exec at Ford and he was a "NWO"-type; no detail just pie-in-the-sky shit and very much anti-American as he pushed the supplier base into China at an unprecedented pace. Their goal was to purchase Chrysler, make it profitable and spin it off for great return on investment. I guess we don't read the same thing because I KNEW the economy would tank, thus thwarting any comeback by the Big Three. Then they started purchasing quality firearm companies - Bushmaster and Remington, then they approached Blackwater USA and it became obvious to any with a brain what they were after - the ability to have light vehicles, weapons and soldiers for domestic usage. SCREW THEM.

[bkb0000]

what are these people's names?

[Left Sig]

I KNEW it would come to this. One of their execs was an exec at Ford and he was a "NWO"-type; no detail just pie-in-the-sky shit and very much anti-American as he pushed the supplier base into China at an unprecedented pace. Their goal was to purchase Chrysler, make it profitable and spin it off for great return on investment. I guess we don't read the same thing because I KNEW the economy would tank, thus thwarting any comeback by the Big Three. Then they started purchasing quality firearm companies - Bushmaster and Remington, then they approached Blackwater USA and it became obvious to any with a brain what they were after - the ability to have light vehicles, weapons and soldiers for domestic usage. SCREW THEM.

Which exec? Sounds familiar but I forget the name...

[GKoenig]

Cerebrus won't divest of the Freedom Group assets - they are one of the few spots in the Three Headed Dog's portfolio that is producing positive returns these days.

[bigshooter]

Cerebrus won't divest of the Freedom Group assets - they are one of the few spots in the Three Headed Dog's portfolio that is producing positive returns these days.

but for how much longer?.

[Mjolnir]

Which exec? Sounds familiar but I forget the name...


Thurstfield :rolleyes:

I'm sure he's Sir ****up Thurstfield

[FromMyColdDeadHand]

Cerebrus won't divest of the Freedom Group assets - they are one of the few spots in the Three Headed Dog's portfolio that is producing positive returns these days.

That's when you sell it. I don't think they are looking for cash flow, they are looking to sell businesses for more than they bought them for.

[Spiffums]

They owned Goody's Family Clothing and sold it lock stock and barrel. My sister lost her job, vacation pay and all the other "false promises" they told them if they stayed to work the final sales.

This is a rough time for the people who make nothing but money. No money to make no reason to have people who are non-productive.

[chadbag]

http://www.gunreports.com/news/news/Remington-Freedom-Group-Theodore-Torbeck-Thomas-Millner_1233-1.html


This news article also lists many of the companies owned by Freedom Group (Cerberus gun holdings division). Includes EOTAC as well