Film Investing: The Outperfoming Sector

The Film Industry has historically been recession resistant, and it is apparent that this economic downturn is no different. As evidenced by two hedge funds, Grosvenor Park and Aramid Capital, the film sector does not necessarily correlate with what is going on in the overall markets.  Grosvenor Park and Aramid Capital are among the few hedge funds that are not experiencing investor redemptions during a time when many will go under. Since 2005, hedge funds have invested about $15 billion in the motion picture industry.  Tax credits and foreign presale distribution deals have not only guaranteed that investors recover their principal, they have proven that generating double digit returns from financing independent films is not an unrealistic expectation.  Our thanks to Julia Boorstin at CNBC for pointing this out in her article Hollywood’s Un-Risky Business. Visit CNBC to watch Julia’s coverage on The Call.