Sex Sells. But Does It Generate Alpha?

Date: Tuesday, June 12, 2007

FT Alphaville reports: “Adult firm to launch hedge fund” ran the story, flagged up by Hedgeweek. The firm in question is AdultVest, set up by former hedge-fund manager Francis Koenig who apparently moved to LA last year with the intention of directing investment towards the porn industry.

One report on the makes Mr Koenig sound more like a venture capitalist than a hedge fund manager. The story says that he aims to match investors and successful entrepreneurs with growing “adult-entertainment” companies.

The type of thing he has in mind is not the opera. Mr Koenig will be hunting, at a convention in Hollywood later this year, for “actors and actresses who want to fund a production or other venture to submit a proposal to his website.” Meanwhile, his investors must have an annual income of $200,000 a year, combined household income of $300,000 a year and net worth of at least $1m.