Investors Ditch Once Lofty Cerberus Fund

Failed investments in Chrysler, GMAC have clients pulling $5.5B
By Harry Kimball,  Newser Staff
Posted Aug 29, 2009 3:48 PM CDT
Chrysler vehicles on display at a Chrysler dealership.   (AP Photo)
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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. (Read more Cerberus Capital Management stories.)