NEW YORK, Dec 23 (Reuters) - Cerberus Capital Management CBS.UL plans to pay 20 percent of year-end withdrawals in cash and suspend the remaining withdrawals for investors in its Cerberus Partners fund, television network CNBC said on Tuesday.
Cerberus plans to suspend year-end withdrawals for up to one year, CNBC said, citing a letter from Cerberus founder Stephen Feinberg to the investors of the fund.
"When we wrote to you at the end of September we thought the trading levels for debt were ridiculously low and there was a great buying opportunity ... we we were wrong," Feinberg wrote in the letter cited on CNBC.
"We believe it is necessary to suspend withdrawals in part so as to to unduly increase the illiquidity of the fund for remaining investors and to permit the fund to take advantage of the buying opportunities currently available in this depressed market on a limited basis," he wrote.
Cerberus Partners, a fund with $3 billion to $4 billion under management, was down 15.8 percent as of Nov 30, with a bulk of the losses occurring in October and November, the letter said.
Cerberus Capital has about $27 billion in assets under management. (Reporting by Jui Chakravorty Das; Editing by Bernard Orr; 646 223
http://www.reuters.com/article/merge...54334420081223
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All I can say is that 2009 will be a gamble, hold onto your wallet, big time.
I'm thinking - the sky is falling.....