Tiny Korean Hedge Fund Hits Jackpot With ‘Parasite’ Investment | Canada News Media
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Tiny Korean Hedge Fund Hits Jackpot With ‘Parasite’ Investment

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(Bloomberg) — For a tiny South Korean hedge fund, the shock Oscar win of dark comedy “Parasite” couldn’t be better news.

The fund, run by Seoul-based Ryukyung PSG Asset Management Inc., has invested around $500,000 in the movie that became the first foreign-language film in history to win the coveted Oscar for best picture. “Parasite” cost $11 million to make and has raked in $165 million so far, and ticket sales are set to climb even more after the award.

The privately-sold fund invests only in movies distributed by Korea’s CJ Group, and it has returned 72.1% since its launch in July 2018, according to data compiled by KB Securities Co. seen by Bloomberg News. It’s also profited from other Korean cinema hits including “Extreme Job” and “Exit.”

The fund’s success underscores how investors are parking their money in ever-more obscure alternative investments such as film-financing funds in the face of falling global interest rates. The film’s Oscar comes as cultural exports such as K-Pop and Korean soap operas become more important for South Korea’s economy at a time when the country is pivoting away from manufacturing-focused industries.

“Film funds are in the limelight at the moment,” said Andy Kim, an analyst at Samsung Securities Co. in Seoul. While the popularity of “Parasite” may help attract more demand, it may still be hard to widen the investor base significantly given the niche investment’s high volatility and the difficulty of assessing whether a movie will sell well, he said.

Shares Benefit

The fund isn’t alone in benefiting from the accolades “Parasite” received. Shares of Barunson Entertainment & Arts Corp., the movie’s production company, have surged about 90% this week. CJ ENM Co., the main investor and marketer, jumped 4.5% during the period.

NongShim Co., which makes instant noodle products featured in the film, has soared about 11% this week.

The four-year fund manages 3.1 billion won ($2.6 million) in assets. Ryukyung PSG Asset Management, which runs it, oversees 1.7 trillion won of assets.

(Updates share price moves in last section of story)

–With assistance from Peter Pae, Heejin Kim and Ayai Tomisawa.

To contact the reporter on this story: Kyungji Cho in Seoul at kcho54@bloomberg.net

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S&P/TSX composite up more than 100 points, U.S. stock markets mixed

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TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 103.40 points at 24,542.48.

In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.

The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.

The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.

The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.

This report by The Canadian Press was first published Oct. 16, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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S&P/TSX up more than 200 points, U.S. markets also higher

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TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.

The S&P/TSX composite index was up 205.86 points at 24,508.12.

In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.

The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.

The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.

The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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S&P/TSX composite little changed in late-morning trading, U.S. stock markets down

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TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.

The S&P/TSX composite index was up 0.05 of a point at 24,224.95.

In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.

The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.

The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.

The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.

This report by The Canadian Press was first published Oct. 10, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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