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Dow and Dirty: Investor Pushes Porn Hedge Fund

AdultVest, claiming 50% growth, sinks money into porn for iPod, among other things

By Victoria Floethe, Newser User

Posted Jan 8, 2009 11:04 AM CST

(Newser) – Looking for a conservative investment? Forget bonds and go for bondage—or, at least, that’s the pitch for AdultVest, a hedge fund its CEO tells the Atlantic is an adult-entertainment industry first. The spiel: AdultVest is up 50% in the past year (based on “very conservative” appraisals), and the porn industry, which hasn’t seen much outside investment, generated approximately $12 billion in 2007.

As the industry struggles to compete with free online content, its future lies in new technology. One start-up in AdultVest’s portfolio is developing an application to send dirty movies to the Apple iPod. But this hedge fund is ultimately betting on desire itself: “The industry’s not going anywhere,” AdultVest’s CEO said. “You’ve got 6 billion people on the planet, and they’re all horny.”

Adult film actress Keisha arrives at the 24th annual Adult Video News Awards Show at the Mandalay Bay Events Center, Jan. 13, 2007, in Las Vegas.

Adult film actress Keisha arrives at the 24th annual Adult Video News Awards Show at the Mandalay Bay Events Center, Jan. 13, 2007, in Las Vegas. (Getty Images)

Author and porn star Ron Jeremy signs copies of his self-titled book The Hardest (working) Man in Showbiz, Feb. 15, 2007. in Beverly Hills, Calif.

Author and porn star Ron Jeremy signs copies of his self-titled book "The Hardest (working) Man in Showbiz," Feb. 15, 2007. in Beverly Hills, Calif. (Getty Images)

Hugh Hefner, editor-in-chief of Playboy, and Holly Madison, of E!'s The Girls Next Door greet fans as they sign copies of Playboy at Virgin Megastore Times Square in New York.

Hugh Hefner, editor-in-chief of Playboy, and Holly Madison, of E!'s "The Girls Next Door" greet fans as they sign copies of Playboy at Virgin Megastore Times Square in New York. (Getty Images)

Adult film star Jason Hawke arrives at TEN's presentation of Timothy Greenfield-Sanders XXX 30 Porn-Stars Portraits, April 1, 2005, in Santa Monica, Calif..

Adult film star Jason Hawke arrives at TEN's presentation of Timothy Greenfield-Sanders XXX 30 Porn-Stars Portraits, April 1, 2005, in Santa Monica, Calif.. (Getty Images)

Publisher Larry Flynt signs copies of his new book Sex Lies and Politics: The Naked Truth.

Publisher Larry Flynt signs copies of his new book "Sex Lies and Politics: The Naked Truth." (Getty Images)

Wearables like this are common at the annual AVN Adult Entertainment Expo in Las Vegas.

Wearables like this are common at the annual AVN Adult Entertainment Expo in Las Vegas. (Getty Images)

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