“Parasite” a Big Win for Korean Hedge Fund

The small Korean hedge fund that invested $500,000 in the Oscar-winner Parasite, the first foreign-language film to win the award, was also a big winner, according to a recent article in Bloomberg.

The privately sold fund, which reportedly invests only in movies distributed by the Korean firm CJ Group, has returned 72% to its investors since its July 2018 launch (data from KB Securities Co.). According to the article, “the fund’s success underscores how investors are parking their money in ever-more obscure alternative investments such a film-financing funds in the face of falling global interest rates.”

Samsung Securities Co. analyst Andy Kim said, “film funds are in the limelight at the moment,” but added that the niche investment faces high volatility and the challenge of assessing which films will be successful—factors which could make it difficult to widen the investor base.

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