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23 May 2008

FoHF's Join Forces to Launch Motion Picture Fund

New York based fund of hedge funds (FoHF) Ginepri Capital, and SAGA Capital, an alternative investments advisory firm, announced a newly formed venture, the SAGA/Ginepri Alpha Fund that focuses on the structuring of complex film slates and debt portfolios in the motion picture space.

"Film investors will increasingly employ new techniques commonly used by investment banks, advisory firms and hedgers to analyze the risk/return profiles of potential securities investments." S.K. Dean, Managing Partner of Ginepri Capital added.

SG Alpha Fund will focus on the financing, analysis and securitization of mid to high budget independent films with committed distribution.

Both FoHF contributed significant proprietary risk capital to the new venture, SG Funds will be syndicating $400 million in debt, between a group of New York and European investment banks, to leverage committed capital. The company will only green-light investments using the proprietary Movie Alpha Model.

"We are very enthusiastic about our association with Ginepri for the design, valuation, production and distribution of film portfolios and related acquisitions." Ralf Voellmer, SAGA President stated.

With a strong emphasis in analyzing the risk/returns in developed economies and emerging markets, the management team of SAGA has significant expertise in financial modeling, including analysis and securitization of deals with embedded credit risk, market risk, and operational risk.

False Asset Statments Lead to Conviction

Kirk Wright's Atlanta-based hedge fund company, International Management Associates was found to be fraudlent leading to the conviction of the manager, Wright, as the Department of Justice unsealed a March 10 criminal complaint against him.

"The complaint alleges a fraud involving $150 million to $180 million in missing investor assets managed by Wright's funds, International Management Associates and International Management Associates Advisory Group," said U.S. Attorney David Nahmias in a statement.

The federal complaint charges mail fraud, executed by mailing a set of false asset statements to IMA investor Stephen Atwater. The charge carries a maximum sentence of 20 years in prison and a fine of up to $250,000 on conviction.

According to authorities, Wright and his company collected more than $150 million spread across thousands of client accounts since 1997 and used false statements and documents to mislead some of them to believe the value of those investments was increasing.

Sentencing is set for August 26.