Clients with more than $5.5 billion invested in hedge funds controlled by Cerberus Capital Management have told the firm that they want their money back....
Mr. Feinberg has told investors that he still believes the investments in the Cerberus Partners funds will be profitable over time and that he did not want to sell securities and other assets in a down market.But the loss of fee income on more than $5.5 billion in capital could prompt talented traders and investment professionals to leave for better-paying firms. Investors who are considering staying with the firm are also concerned that the liquidations will push down the value of their investments as they are sold off.
“We are embarrassed and disappointed by our 2008 performance, and we feel an obligation to you to turn this around,” Mr. Feinberg said in the July letter
That line about talented traders leaving seemed rather ominous to me, but maybe I am reading too much into it. Regardless, could the position of Cerberus have an impact on the New Page Mill in Kimberly?
2 comments:
When I saw this post title I wondered why the three headed dog that guards the gate to Hades needs money!?! :)
Let's change your post-headline to this:
"Is Cerberus Stupid?"
The answer is "Yes."
"Blinded by greed" might be acceptable as an alternative answer.
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