You may recall a short while back, after the tragedy in Newtown, how the California State Teachers Retirement System learned that its $500 million investment commitment to private equity group Cerberus Capital Management was headed to a company with a controlling interest in North Carolina-based Freedom Group, maker of the Bushmaster assault rifle used in the shootings at Sandy Hook Elementary School.
Needless to say, the group of current and retired teachers were none too happy to learn that their hard-earned dollars were funding assault weapons and quickly announced that they were reviewing that commitment. The group’s response to its very public discovery, coinciding with national outrage over the shootings and renewed calls for gun control legislation, caused Cerberus to announce just days later that it was selling its interest in Freedom Group.
Now comes another pension group, the New York State Common Retirement Fund, that is likewise seeking to exercise its shareholders rights to dictate the behavior of companies in which it invests — this time taking aim at the corporate political spending unleashed by the U.S. Supreme Court’s Citizens United decision. Read more