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SUNDAY, NOVEMBER 22, 2009
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Investors Ditch Once Lofty Cerberus Fund

Failed investments in Chrysler, GMAC have clients pulling $5.5B

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(Newser) – Hedge-fund investors are leaving once-vaunted investment firm Cerberus Capital Management in droves, the Wall Street Journal reports. The firm, whose acquisitions of Chrysler and GMAC turned disastrous, is seeing $5.5 billion in capital—or 71% of its hedge fund assets—walk out the door. "We have been surprised by this response," says CEO Stephen Feinberg.

Chrysler vehicles on display at a Chrysler dealership.
Chrysler vehicles on display at a Chrysler dealership.   (AP Photo)
Cerberus Capital Management LP Chairman John Snow in 2007.
Cerberus Capital Management LP Chairman John Snow in 2007.   (AP Photo)
Stephen Feinberg, Cerberus chief.
Stephen Feinberg, Cerberus chief.   (AP Photo)
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In our view, given the current general illiquidity in the distressed markets, it would be practically impossible for a distressed investment fund to provide quarterly liquidity for 100% of its capital. - Cerberus letter to investors

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3 comments
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Deebles
Aug 29, 09 4:56 PM CDT
Well, when you're guarding the underworld, sometimes the ferryman want's his fucking coins back. Reply
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Reader587
Aug 30, 09 9:25 AM CDT
Nothing good can come from a three-headed dog who guards the gates of hell. Arrogance before the fall! Reply
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Observer
Aug 30, 09 9:45 AM CDT
Good to see rich jack-off's take it in the butt sometimes. Reply
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