Cerberus to sell gunmaker Freedom Group

[HotGuns]

Bad News?

U.S. private equity firm Cerberus Capital Management said on Tuesday it will immediately begin selling its investment in gunmaker Freedom Group in light of last week's school shooting in Connecticut.

Cerberus to sell gunmaker Freedom Group after shootings | Reuters

This may not be good. Cerberus, a multi billion dollar operation, is dumping one of its most profitable businesses.

I can't help but think that they know something is up and that they are getting rid of the guns buisness before the stock market drops to the point that it is no longer profitable. Do they know something we dont?

I dont beleive that things happen by accident in the buisness world. They are jumping ship while they can. They expect bad things to happen and I am pretty sure that they are capitalizing on some sort of insider info.

Comments and thoughts?

[DefensiveCarry.com]

[Happypuppy]

No big deal IMO. If they don't want an investment that is making a good profit in this economy they have too much money. Someone will gladly take it that has a pair.


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[dukalmighty]

No big deal IMO. If they don't want an investment that is making a good profit in this economy they have too much money. Someone will gladly take it that has a pair.


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Might be making a profit now,but if they make guns that could be banned from civilian purchase then that business will start losing money since more guns are purchased by civilians than LE Departments

[Gene83]

Well this might have something to do with it. Spitzer has them in his sights.

Maybe they just feel it's not worth all the drama.


Newtown shooting: It

[QKShooter]

One thing that we know for sure is that we'll never know for sure.

We are the common lowly peons standing in the cold on the outside of the mansion and the drapes are always drawn so that we can't peek in.

[Gene83]

One thing that we know for sure is that we'll never know for sure.

We are the common lowly peons standing in the cold on the outside of the mansion and the drapes are always drawn so that we can't peek in.

That's true. I just saw Spitzer's blog on Slate and then read this post. With Spitzer calling for their institutional investors to put pressure on them to get out of the gun business, they may have decided it was best to go ahead and sell the gun companies.

[miller_man]

Hmm, I think they are definitelty walking away from a industry that is seeing record sales. Lot of money being made in firearms and they're going to walk away?

I have to agree, buisness minded people don't walk away from profits, even if its a hot button or politicly incorrect at the time. Maybe they consider the AWB a done deal.

BTW, just read the story in both of those links. Both said the AR 15 was used in the shooting, looked at another story on fox news, did I miss something? Last reports I heard on this were, he only used the handguns and left the AR in the car.

[kapnketel]

The ME said the wounds were consistent with rifle fire.

[Gene83]

Hmm, I think they are definitelty walking away from a industry that is seeing record sales. Lot of money being made in firearms and they're going to walk away?

I have to agree, buisness minded people don't walk away from profits, even if its a hot button or politicly incorrect at the time. Maybe they consider the AWB a done deal.

BTW, just read the story in both of those links. Both said the AR 15 was used in the shooting, looked at another story on fox news, did I miss something? Last reports I heard on this were, he only used the handguns and left the AR in the car.

Supposedly, and there have been a lot of different stories, all the victims at the school and the young man's mother were shot with the .223 Bushmaster. Most were shot multiple times. He committed suicide with one of the pistols.

[Gene83]

The New York Times version gives a little more information..

Tuesday’s announcement follows a statement from the California State Teachers’ Retirement System, a large pension fund, that it was reviewing its investment in Cerberus in light of the firm’s holding in Freedom Group.

“At this point, our investment branch is examining the Cerberus investment to determine how best to move forward given the tragic events of last Friday in Newtown, Connecticut,” a spokesman for the Californian public pension fund told Reuters on Monday.



Cerberus to Sell Gunmaker Freedom Group - NYTimes.com

[high pockets]

The New York Times version gives a little more information..

Tuesday’s announcement follows a statement from the California State Teachers’ Retirement System, a large pension fund, that it was reviewing its investment in Cerberus in light of the firm’s holding in Freedom Group.

“At this point, our investment branch is examining the Cerberus investment to determine how best to move forward given the tragic events of last Friday in Newtown, Connecticut,” a spokesman for the Californian public pension fund told Reuters on Monday.

Yes, indeed, and we all bow down, again, to the almighty dollar!

[Gene83]

Yes, indeed, and we all bow down, again, to the almighty dollar!

Well, since they are an investment group that basically invests other people's money, you would expect them to listen to those people. On a smaller scale, if a group of people invested in a mutual fund started grumbling about pulling out of the fund because they didn't like the investment mix, you would expect the fund managers to listen to them.

I'm not a big fan of Spitzer or the California State Teachers' Retirement System, but I don't fault Cerberus for trying to act in their best interest.

[xXxplosive]

IMO............this will blow over after the next world catastrophic event.......the debut of the film in movie theatres Zero Dark Thirty tomorrow ...........IMO....mid-east should errupt into chaos.....we'll see.

[jhuhn918]

News I seen on Saturday was the .223 and 2 handguns used inside and a tactical shotgun left in the trunk... Our Media absolutely sucks at sharing the truth.. What a shame

[kapnketel]

These are the same people who are pushing the disinvest in Israel campaign. No shock. Injure the profitability and stability of your pension plan to make a political point. Stupid stupid stupid.