Steve Feinberg moved into private equity to avoid distressed-debt hedge fund woes, but Chrysler and GMAC threaten his reputation.
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...