For hedge funds seeking star-studded returns in
Hollywood, DreamWorks Animation SKG (DWA) must have looked like
the best ticket around. Little did anyone know how soon it
would turn into an investor's horror show, dropping a stunning
30% in a few weeks in May and June.
Run by media moguls Steven Spielberg, David Geffen and
Jeffrey Katzenberg, DreamWorks came out of the gate via a $933
million initial public offering last October, followed by a
monster hit called Shrek 2 that helped push its stock price
from $28 per share to about $43 within its first two months of
And with a bevy of would-be animated hits in the pipeline,
who could blame Stanley Druckenmiller's Duquesne Capital
Management from falling all over the company that had produced
Shark Tale, a family flick that had chewed up the box office
with $50 million in ticket sales on its opening day?...