It's been a really rough ride for media stocks, whose recent
market slide has been almost as steep as the decline of
newspaper readership. Hedge funds investing in such stocks may
be bucking the conventional wisdom about the future of print.
But that bet hasn't paid off yet.
And it isn't helping that one prominent media company's
founder and colleagues are being accused of stealing $51.8
million from company coffers. That's what happened in early
November when the Hollinger International newspaper group's
founder was brought up on criminal charges. Fallen media tycoon
Conrad Black was indicted in Chicago for allegedly committing
fraud and diverting huge sums of cash from Hollinger to pay for
personal expenses, including a party for his wife and tens of
thousands of dollars for a trip to Bora Bora.
One of largest shareholders, as of October 1, was Marathon
Asset Management. Filings with the Securities...