Hedge Funds Industry Analysis

Elliott’s Hollywood gamble


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