Hedge Funds

Cerberus restructuring plan takes shape


Stephen Feinberg’s Cerberus Capital Management, which is facing massive redemptions in its hedge funds, has finally come up with a restructuring plan – a route many other hedge funds started following last year. After losing more than 20% in its biggest hedge funds last year, Cerberus deferred redemptions, which investors say its terms allow it to do for a year.

But the clock is ticking, and in its July investor letter, Cerberus finally took action. Assets of investors still seeking to withdraw their capital will be placed in a “special-purpose vehicle” that may sell assets to make cash