In the wake of the devastating Connecticut school shooting, investors have turned against major gun manufacturers, most notably Cerberus Capital Management, which announced plans to sell Freedom Group Inc., the maker of the Bushmaster semiautomatic rifle involved in the tragedy. This decision represents a significant shift in the investor landscape as stocks of gun companies experience declines, and some retailers like Dick’s Sporting Goods temporarily halt sales of military-style firearms.
The move by Cerberus, prompted by both investor pressure and fears of impending stricter gun laws, underscores a growing reluctance to associate with an industry facing increasing scrutiny. California’s teacher pension fund, for example, is reevaluating its substantial investment in Cerberus following the shooting. The potential for more stringent gun legislation could profoundly impact Freedom Group, which has reported losses in four out of the last five years, making this moment a critical juncture for both investors and the future of gun sales in America.
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