NewswireToday - /newswire/ -
Chicago, IL, United States, 2010/11/30 - Unlike a mutual fund, REIT, hedge fund, oil & gas investment, or other correlated asset class, film can in certain instances provide a 60-100% ROI prior to revenues - YuriRutman.com.
The New York Times recently did a large article on investing in film covering the many different investors looking at Hollywood that are coming from different backgrounds including oil & gas executives, real estate entrepreneurs, CEO's of companies, hedge fund managers, and others that understand film investment as a non-correlated asset class.
"I think what investors are finally starting to realize is that investing in a movie company or film fund is like investing in a mutual fund", states Yuri Rutman, CEO of Noci Pictures (noci.com) which allows high net worth investors and private equity groups to invest in a film portfolio. "Each film takes a life on its own as a stand alone company but the difference is unlike hedge funds, mutual funds, or other alternatives, there is no correlation to whether the S&P's, stocks, or oil prices are going up and down".
Recently, Fortress Investments, one of the biggest private equity groups bought out the initial investors of Legendary Pictures which may have included Honeywell Pension Funds, MC Ventures, Arbry Partners, and others.
"Its not just the dentist or plastic surgeon looking for a vanity investment", states Rutman. "When self made billionaires like Fred Smith of FEDEX or hedge funds like Elliott Associates are investing in films, the question that every investor needs to ask is 'why'?"
Rutman's Chicago based company is setting the stage in educating interested investors, family offices, money managers, financial advisers, fund of funds, hedge fund managers, and private equity groups on why investing in the film business is really an investment into a manufacturing and distribution company. "The creation of something into nothing is manufacturing", adds Rutman. "Even the IRS, under its on again off again Section 181 details that an investment into a film is considered a manufacturing company".
"What we are also scaling and educating investors on, that an investment in film is risky if the pipeline for distribution is a gamble", "Rutman continues. "In our model, our equity reserve guarantees a theatrical release whether its on 100 screens or 3000 screens which give investors a higher level of transparency in revenues".
There is a very privileged and sophisticated way of financially participating in a basket of commercial films, which unlike a mutual fund, REIT, hedge fund, oil & gas investment, or other correlated asset class, can in certain instances provide a 60-100% ROI prior to revenues that has full transparency and has zero quantitative, exotic, or other confusing financial models that have in the last few years proven to be more risk than reward.
And with the growing demand of 3D Cinema, the costs of theatrical distribution coming down, DVD markets healthy, global Video On Demand rising, mobile technology, utilizing specialized social media and word of mouth marketing, and long term library valuation and multi-tier ancillary revenues, Noci Pictures has developed a very innovative business model and financial product that is scalable to both smaller investors and large institutional capital.