In 2006 an investment firm called Cerberus Group acquired several large weapon manufacturers and rolled them into one company, Freedom Group, which is based out of North Carolina. In the wake of the Sandy Hook Massacre, Cerberus is being forced to dump that asset or risk losing investment from one of its biggest clients, the California Teachers Fund.
One of the holdings is Bushmaster, the company that manufactured the AR-15 assault rifle used by Newtown shooter Adam Lanza. Freedom group is on track to post $900 million in profits this year, so it’s a significant loss. Though California’s examination of its portfolio for firearms-related holdings is hardly a surprise given the state’s strict gun control policies.
The company is headed up by Stephen Feinberg. Mr. Feinberg is a prominent Republican donor. Other senior executives include retired high ranking military figures and former vice president Dan Quayle. Perhaps more telling is executive George Kollitides, a National Rifle Association Trustee, and director of the New York State Rifle & Pistol Association. So it’s not likely that the asset dump is a result of a moral quandary, but rather, sound business as usual. In a strange twist, Mr. Feinberg’s 86-year-old father is a resident of Newtown, Connecticut.