Hedge Funds Industry Analysis

Elliott’s Hollywood gamble

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Paul Singer is using his sharp elbows to take on the movie industry, but has he met his match?

In his now infamous second-quarter 2010 investor letter, Paul Singer, founder and chief executive of $17 billon New York hedge fund firm Elliott Management, made a seemingly innocuous announcement about one of his equity investments: “Relativity Media has announced the appointment of Michael Joe as president.” A 15-year executive at the California motion picture company Universal, Joe had most recently been its chief strategy officer.

Headquartered on Beverly Boulevard in Los Angeles, Relativity is a media and entertainment company founded by Ryan Kavanaugh, in which Elliott has a significant investment. Joe’s appointment had film insiders speculating he had been