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Hedge Funds Say Hooray For Hollywood
Movie studios are giving three cheers for hedge funds.
Movie studios are giving three cheers for hedge funds. As the result of the commercial success this year of the Meryl Streep star vehicle The Devil Wears Prada and Sacha Baron Cohen's Borat Cultural Learnings of America for Make Benefit Glorious Nation of Kazakhstan, hedge funds are inking bigger and better deals. According to Financial Times, those two 20th Century Fox hits have prompted Dune Capital Management to sign a new film financing deal worth more than $520 million for at least 15 news flicks. Think of the money Dune, a former George Soros-controlled vehicle, can rake in. Borat, says FT, cost under $20 million to make, but already it has brought in more than three times that amount and still going strong -- and thats not counting additional revenue expected once it opens internationally and is eventually released on video. Dune isnt the only looking to reap mounds of money. Relativity Media's Ryan Kavanaugh formed the hedge fund Gun Hill Road to raise about $1.3 billion for the co-financing of a total of 37 films at Sony Pictures Entertainment and Universal Pictures. On the other hand, just a gentle reminder that not every new movie is a screen gem. Wisconsin-based Stark Investment took a bath earlier this year when the remake of The Poseidon Venture tanked -- leaving the firm and its investors to soak up about $75 million in losses.