The Trophy Fund has found a funny way to make money: Buying into companies with no income. The Hong Kong-based fund, run by Kenneth Hung, chief investment officer at Winnington Capital, has staged an amazing turnaround by investing heavily in companies that have no earnings. The fund was down 26% in 2005, but in the first quarter it zoomed up 159%, earning it the distinction of being the best-performing hedge fund in the world among the more than 5,900 Bloomberg tracks. The key to the fund’s success, Hung told Bloomberg News, is to do one’s home work and then invest big. “We do a lot of research and due diligence,” Hung said, adding, “Once we build our conviction in a company we’ll take large, meaningful exposure.” Large indeed. The Trophy fund put 25% of its $140 million in one company, Imagi International Holdings, a computer-graphics firm whose share price has soared 600% since the beginning of the year. About Imagi, Hung says, “There’ll be very good earnings to come. The company is still very undervalued.”