Feinberg moved into private equity to avoid distressed-debt
hedge fund woes, but Chrysler and GMAC threaten his
By Steve Rosenbush
Could Steve Feinberg, chief executive of Cerberus Capital
Management, simply be too in love with American cars? That
might just be the best explanation why the brilliant distressed
investor - known as a regular guy who likes to drive around in
a pickup truck - has gotten bogged down trying to turn around
both Chrysler and General Motors Acceptance Corp.
Recessions should be gleeful times for old-pro vulture
investors such as Feinberg, but the one we're in now is causing
him grief. His move into private equity looked smart years ago,
as distressed-debt hedge fund returns sank when defaults were
low and credit was plentiful. But now it's clear that he bought
marquee auto names - which were already struggling - at the top
of the market. Private equity pros...