A lot of analysts thought that Cerberus management, usually so clever and sharp, made a buffoon’s move when they bought into Chrysler and GMAC. The auto market immediately went South.
It turns out the money management firm was not so dumb. According to the FT, "the buy-out firm has sold "significantly" more than half its equity to about 90 investors." That does not say much for the fund’s view of the recovery of the auto industry. GM (GM) and Ford (F) shares have been hit recently as high gas prices cut into auto sales.
Now, another group of smart funds gets to hold the bag.
Douglas A. McIntyre