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Tuesday, December 18, 2012

The Three Headed Dog Cuts and Runs

Cerberus Capital has announced that they will be divesting of their Freedom Group holdings, which consist of some of the biggest names in the firearms industry including Bushmaster, Remington, and DPMS Panther Arms to name a few. They claim in their press release that they do not want to be part of the debate after the tragedy in Newtown, CT on Friday. 


Apparently four days of anti-gun rhetoric and pressures from within have led them to a decision to sell off one of their more controversial investments. Clearly the powers that be are making an investment decision as all private equity firms do when an event of such magnitude takes place. Cerberus manages $20 Billion in investments, so this is no small decision given the magnitude of Freedom Group. However, it is intriguing that such a quick decision was made for such a large portion of their holdings.

Many companies are making decisions today based on fervent outcry. Cerberus is led by several powerful figures including Vice President Dan Quayle. If they are claiming that this is not an investment decision then that is fine, but last time we checked that was their business. Read the full release at: CerberusCapital.com

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