FRANK YABLANS IS the Warren Buffett of Hollywood. Former president of Paramount Pictures and former chairman of MGM, the 71-year-old has more than 300 films under his belt, including blockbusters such as The Godfather, Serpico, Paper Moon and Murder on the Orient Express. Back in the early 1970s when Paramount made the original version of The Longest Yard, Yablans remembers, third-party financing came from tax-shelter deals. Now Yablans is running his own film production and distribution company, Promenade Pictures. With investment advisory firm Bluebay Capital, Promenade is seeking finance from the most recent investor base to hit Tinseltown – hedge funds. This sophisticated investor base has poured an estimated $4 billion into Hollywood in the past three years in investment vehicles that, like Yablans’s operation, are attempting to create a high-returning asset class with less risk than traditional, rather speculative investment in the film industry....
