- There has been an e-mail circulating that claims that
Cerberus Capital Management and the Freedom Group control most of the
firearms and ammunition industry and that George Soros owns these investment
firms. The rumor of Soros involvement is false, according to the NRA:
- The National Rifle Association stated: "This rumor
is completely false and baseless." The NRA has a long-standing relationship
with both Cerberus and Freedom Group, noting: "The owners and investors
involved are strong supporters of the Second Amendment and are avid hunters
and shooters." Further, Soros has never been a part of either group.
- This unsubstantiated rumor has caused a great deal of
unnecessary concern for gun owners. NRA-ILA urges our members to take great
care before repeating baseless rumors found on the Internet."
- Who Controls Cerberus?
- From Wikipedia: Cerberus Capital Management, L.P. is
one of the largest private equity investment firms in the United States.
The firm is based in New York City, and run by 51-year-old financier Steve
Feinberg. Former U.S. Vice President Dan Quayle has been a prominent Cerberus
spokesperson and runs one of its international units.
- Founded in 1992, Cerberus is named for the mythological
three-headed dog that guarded the gates of Hades. Feinberg has stated to
his employees that while the Cerberus name seemed like a good idea at the
time, he later regretted naming the company after the mythological dog.
- The company has been a very active acquirer of businesses
over the past several years and now has sizable investments in automotive,
sportswear, paper products, military services, real estate, energy, retail,
glassmaking, transportation, and building products. In 2006, its holdings
amounted to $24 billion.
- On October 19, 2006, John W. Snow, President George W.
Bush's second Treasury Secretary, was named chairman of Cerberus.
- J. Ezra Merkin is a partner in Cerberus. Merkin invested
his funds into Cerberus and its portfolio companies. His Gabriel fund invested
$79 million in Chrysler, $66 million in GMAC and $67 million in Cerberus
partnerships, according to year-end statements. The Gabriel Fund was a
feeder fund for Bernard L. Madoff Investment Securities LL http://en.wikipedia.org/wiki/Cerberus_Capital_Management
- Cerberus appears to be a very connected outfit, but there
is no mention of Soros.
- According to an article in the Wall Street Journal from
2009, Cerberus received $4 BILLION IN BAILOUTS funded by taxpayers for
their company, Chrysler. The Freedom Group is a subsidiary of Cerberus.
- Here is a list of holdings by the Freedom Group:
- Remington Arms
- Bushmaster Firearms International
- DPMS Panther Arms
- H & R Firearms
- Dakota Arms
- LC Smith
- AAC Advanced Armament Corporation
- Barnes Bullets
- In closing, it appears that Cerberus does hold a large
market share of the ammunition industry and Cerberus has enjoyed enormous
taxpayer funded bailouts ($4 billion). Cerberus has some political and
financial heavy-hitters on its board and has made some TERRIBLE investments.
- In a free market capitalist system, even if a corporation
bought up all the gun and ammunition manufacturers and made ammo cost prohibitive
or stopped selling it, new companies would arise to fill the demand. But
our system is one of crony capitalism that favors corporations. Therefore,
it may be wise to stock up on firearms supplies.