Hedge Fund Peter Principle

$36 billion Cerberus Fund (soon to be the $10 billion Cerberus Fund) rides Aegis Mortgage into the ground, then buys GMAC at peak. Hilarity ensues.

QOTD:

"Industry returns have been extraordinary, 20% to 30% a year," says Katharina
Lichtner, managing director of the private equity advisory firm Capital Dynamics. "Returns will come down, revert to a more normal 16%."

Yes, 16% is normal. More like -16% for these geniuses.

Cerberus is one of the largest private equity investment firms in the US (apparently Dan Quayle runs one of their units, so you know they must be super smart guys). Oh yeah, they own Chrysler too, which is now run by uber tool Bob "I drove Home Depot into the ground" Nardelli.

Don't worry, the taxpayers will bail these jokers out. They won't have to sell the third house in the Hamptons.