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Discussion Starter #1 (Edited)
Guess they liked the profit benefit but not the potential publicity from the Bushmaster that they produced.

NEW YORK, Dec. 18, 2012 /PRNewswire/ -- We were shocked and deeply saddened by the events that took place at the Sandy Hook Elementary School in Newtown, CT on December 14, 2012. We cannot comprehend the losses suffered by the families and friends of those killed by the unthinkable crimes committed that day. No words or actions can lessen the enormity of this event or make a dent in the pain that was inflicted on so many.

In 2006 affiliates of Cerberus Capital Management, L.P. made a financial investment in Freedom Group. Freedom Group does not sell weapons or ammunition directly to consumers, through gun shows or otherwise. Sales are made only to federally licensed firearms dealers and distributors in accordance with applicable laws and regulations. We do not believe that Freedom Group or any single company or individual can prevent senseless violence or the illegal use or procurement of firearms and ammunition.

It is apparent that the Sandy Hook tragedy was a watershed event that has raised the national debate on gun control to an unprecedented level. The debate essentially focuses on the balance between public safety and the scope of the Constitutional rights under the Second Amendment. As a Firm, we are investors, not statesmen or policy makers. Our role is to make investments on behalf of our clients who are comprised of the pension plans of firemen, teachers, policemen and other municipal workers and unions, endowments, and other institutions and individuals. It is not our role to take positions, or attempt to shape or influence the gun control policy debate. That is the job of our federal and state legislators.

There are, however, actions that we as a firm can take. Accordingly, we have determined to immediately engage in a formal process to sell our investment in Freedom Group. We will retain a financial advisor to design and execute a process to sell our interests in Freedom Group, and we will then return that capital to our investors. We believe that this decision allows us to meet our obligations to the investors whose interests we are entrusted to protect without being drawn into the national debate that is more properly pursued by those with the formal charter and public responsibility to do so.

Our thoughts and prayers are with the families and communities impacted by this tragic and devastating event.
PR Newswire (Cerberus Capital Management Statement Regarding Freedom Group, Inc. -- NEW YORK, Dec. 18, 2012 /PRNewswire/ --)[/LEFT]

Freedom Group info:

Freedom Group Family of Companies

 

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Skeptical of Everything
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I heard last night that the father of the CEO of Cerberus lives in Newtown, CT.

I see this as a good thing. Some Remington dealers I know are not happy with Cerberus and would like to see them go away.
 

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This appears to be a business decision. Cerberus owns Freedom Group as an investment to try to make money, not out of any interest in guns.

Be nice if the employees at Remington and Marlin would buy Freedom Group.
 

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How much cash do you think we can come up with......seems like a wise investment!
It may or may not be a wise investment.

Firearms makers do, however, seem to benefit more than other companies from being owned and run by "gun guys." Windham Weaponry and Henry Repeating Arms are excellent examples of this.

Sturm Ruger is a publicly traded company, but is run by gun people. We all know they have had a great year.
 

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Larry the Conservative
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I understand all above, but as a investor, I'd drop ANY company from my portfolio that acted like this. It shows a real lack of confidence in their holdings.

We all know that there will be a few weeks before we can know how things are going to shake out. In Hollywood the producers of several "gun shows" have been swamped with negative phone calls and have started canceling shows - any surprise about spineless cali libs acting like this? Not a bit. It's expected, they didn't like gun shows anyway.

Investment companies are another matter. I'd urge any of our members who hold this bed-wetting group in their portfolio to dump it, it's had is run and there's no upside left for them.
 
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