Simon returned to Los Angeles and resumed his busy work schedule. During this period, the most talked-about event in Hollywood was undoubtedly the re-release of the Star Wars series.
To celebrate the 20th anniversary of the Star Wars franchise and to build anticipation for the upcoming prequel series, Star Wars: The Phantom Menace was re-released across 2,104 screens in North America on January 30th. In the United States, the Star Wars franchise holds a cultural status similar to Journey to the West in China. The re-release was met with an overwhelmingly enthusiastic response.
From January 31 to February 6, during its first week of re-release, Star Wars: The Phantom Menace effortlessly grossed $45.49 million at the box office. Despite being in the slow late-January season, its performance rivaled that of a blockbuster released during a peak period, a testament to the immense draw of the Star Wars IP.
The success of the Star Wars re-release impacted a slate of holdover films from the holiday season. Apart from a few awards-season contenders like Good Will Hunting and The English Patient, most older films began wrapping up their theatrical runs.
On the same weekly chart, Star Wars was followed in second place by Charlie's Angels, which was in its seventh week of release. Its weekly box office earnings fell from $12.49 million the previous week to $7.11 million, bringing its total to $232.81 million.
In third place was Good Will Hunting.
Counting from its limited release, Good Will Hunting was in its ninth week of play and earned another $6.69 million with just a 25% week-to-week drop, bringing its cumulative total to $133.78 million.
Although Charlie's Angels earned more than Good Will Hunting during the week, its steeper decline of 43% compared to Good Will Hunting's 25% shows that the latter's performance was more stable, positioning it well for the Oscars.
Fourth and fifth place went to Jumanji and The English Patient, which earned $5.03 million and $5.01 million, respectively. Like Charlie's Angels and Good Will Hunting, these two films were in similar situations.
In its eighth week, Jumanji saw a 39% decline, with a cumulative total of $194.09 million.
Meanwhile, The English Patient, also in its eighth week, dropped just 19%, bringing in $5.01 million for a cumulative total of $36.37 million.
Outside the top five, last year's Thanksgiving release Wonder Woman 2 finally concluded its run.
In its 11th week, Wonder Woman 2 grossed an additional $1.63 million across 565 screens, bringing its total domestic gross to $415.09 million. As Daenerys Entertainment further reduced its screen count for the film starting February 7 to make way for new releases, its remaining earnings were expected to taper off significantly, likely ending around $417 million domestically.
After the first week of Star Wars' re-release, Daenerys Entertainment began ramping up its 1996 film lineup.
On February 7, at the start of a new box office week, two films that had received critical acclaim at January's Sundance Film Festival, Lock, Stock and Two Smoking Barrels and Following, were released simultaneously.
The release was synchronized between the US and UK.
Initially, Simon had hoped that Lock, Stock and Two Smoking Barrels, which had previously performed much better in the UK than in North America, and another British cultural phenomenon, The Full Monty, would premiere in the UK to build momentum before transitioning to North America. However, after reviewing the UK film bundling strategy proposed by the company's marketing team for February, Simon decisively approved the new plan.
The main reason was that this strategy did not include The Full Monty, which had been a massive cultural phenomenon. While Lock, Stock and Two Smoking Barrels had achieved undeniable success in Simon's memory with UK box office earnings of £28 million, it fell short of The Full Monty's record-breaking £160 million. As such, even if the new strategy introduced some deviations, it would not affect the overall picture.
Moreover, the bundling strategy didn't just involve Lock, Stock and Two Smoking Barrels and Following. The Valentine's Day release of Bridget Jones's Diary was the centerpiece.
Although the lead actress in the slightly earlier version of Bridget Jones's Diary was Julia Roberts—a quintessential all-American girl—the film's production team and storyline were deeply rooted in British culture. Calling it a British film was not entirely misplaced.
Now back to Lock, Stock and Two Smoking Barrels and Following.
Carrying forward their strong reputations from Sundance, these two low-budget dramas received widespread acclaim in both British and American media upon their release. Moreover, following Simon's suggestion, both Christopher Nolan's Following and Guy Ritchie's Lock, Stock and Two Smoking Barrels were marketed as "mind-bending" films. The latter's multi-threaded narrative structure was far more complex than most similar projects in recent years, making it a genuinely thought-provoking experience.
The films' widespread media praise, combined with the "mind-bending" marketing hook, sparked curiosity among audiences, enabling the two films to grab significant attention even amidst the nostalgic re-release of Star Wars.
During the week of February 7 to February 13, Star Wars: The Phantom Menace continued to dominate in its second week with an impressive $26.35 million. Meanwhile, Lock, Stock and Two Smoking Barrels and Following, released on 763 and 712 screens, respectively, grossed $5.41 million and $4.65 million.
Although these numbers may not seem particularly high, both films had already recouped their production costs within a single week.
More impressively, their per-screen averages were strong: Lock, Stock and Two Smoking Barrels earned $7,092 per screen, while Following brought in $6,530 per screen. For February, a typically slow period, and with fewer than 1,000 screens, these numbers signified a major success. The two films also broke into the weekly top five, ranking fourth and fifth, behind Star Wars: The Phantom Menace,Good Will Hunting, and Charlie's Angels.
On February 12, during the Hollywood Chinese Theater premiere of Bridget Jones's Diary, the creators of Lock, Stock and Two Smoking Barrels and Following attended the event to show their support. Daenerys Entertainment's concerted efforts linked the three films together, boosting the momentum for the two smaller films even further.
Thanks to their growing popularity and the lack of strong competition in the coming weeks, it was anticipated that both films could enjoy long theatrical runs until Easter at the end of March, with North American box office earnings easily surpassing Daenerys Entertainment's original projections of $20 million to $30 million. Breaking past $30 million was not out of the question.
Considering the films were made on budgets of just two to three million dollars each, their domestic box office returns represented tenfold profits. Combined with international earnings, the projects' profitability rivaled that of some underperforming blockbusters.
On February 14, Valentine's Day, Daenerys Entertainment released its flagship 1996 film, Bridget Jones's Diary, across 2,513 screens in North America.
The film received overwhelmingly positive reviews.
The day after its premiere, the embargo on reviews was lifted, and the film achieved an outstanding 8.3 out of 10 on aggregate review sites.
Variety praised Bridget Jones's Diary as a "smart, unconventional, and nuanced romantic film," akin to When Harry Met Sally and Four Weddings and a Funeral.
Julia Roberts' transformative performance, including her willingness to gain 30 pounds, was widely recognized.
The New York Times noted that Roberts' weight gain did not diminish her charm; instead, it made her even more captivating. Renowned critic Roger Ebert echoed this sentiment in the Chicago Sun-Times, commending Roberts for breaking new ground in both appearance and acting.
Despite competition from Warner Bros.' Vegas Vacation, starring veteran comedian Chevy Chase, and Paramount's romantic comedy Fools Rush In, starring Matthew Perry and Salma Hayek, Daenerys Entertainment's bundled marketing strategy dominated the Valentine's Day buzz. Even the re-released Star Wars: The Phantom Menace struggled to maintain its spotlight, while the two competing new releases barely registered.
The surge in market activity triggered by the Star Wars re-release and Daenerys Entertainment's marketing strategy led industry analysts to predict that Valentine's Day week, starting February 14, would push North America's weekly box office totals back above the $100 million mark, with the lion's share going to the most prominent titles.
Subsequent results confirmed these predictions.
Despite the recent rise of massive blockbuster releases overshadowing other films, Julia Roberts' box office appeal remained strong. Combined with an excellent story, the potential of the actress—who may not officially be America's sweetheart but essentially embodies the role—was reignited.
Over its opening weekend, Bridget Jones's Diary grossed an impressive $26.29 million in just three days, achieving a stellar per-screen average above $10,000.
For its first full week, from February 14 to February 20, the film's box office climbed to $37.62 million, with a seven-day per-screen average nearing $15,000. This was an excellent start for a film projected to enjoy a steady run leading up to the Easter holiday.
Ranking second was Star Wars: The Phantom Menace, which was initially expected to experience a rare week-to-week increase. However, due to competition from Bridget Jones's Diary and other new releases, it dropped 22% instead, earning $20.61 million.
Warner Bros.' Vegas Vacation ranked third, grossing only $11.76 million in its debut week across 2,054 screens, resulting in a mediocre $5,000 per-screen average. It was clear this film would quickly fade after Valentine's Day week.
Paramount's Fools Rush In fared similarly, opening on 1,674 screens and earning just $9.13 million in its first week.
Despite the influx of new releases, Guy Ritchie's Lock, Stock and Two Smoking Barrels managed to hold on to fifth place.
In its second week, buoyed by its strong debut, Daenerys Entertainment expanded its screen count for both Lock, Stock and Two Smoking Barrels and Following to over 1,000. Coupled with the Valentine's Day buzz, Lock, Stock and Two Smoking Barrels earned $7.53 million across 1,076 screens, achieving a remarkable 39% increase.
Although Following dropped to sixth place, its expanded release across 1,029 screens allowed it to gross $6.21 million, representing a 33% increase.
These exceptional performances prompted Daenerys Entertainment to revise its North American box office projections for both films to above $30 million each.
It was widely expected that Lock, Stock and Two Smoking Barrels would outgross Following. The latter's intricate, cerebral narrative required careful attention to follow and lacked broader appeal, while the former balanced complexity with humor and strong performances, making it more accessible even to casual viewers.
Returning from China, Simon remained in Los Angeles for Valentine's Day on February 14 and his 29th birthday on February 22. He stayed in the city for two consecutive weeks.
Finally, on February 24, near the end of the month and the start of a new week, Simon departed Los Angeles for the East Coast.
On the Friday prior—his birthday—Tiger Fund, which had been losing nearly 80% of its value amidst the Nasdaq's climb above 6,700 points, officially announced its liquidation. After three months of devastating losses, the $12 billion fund managed by Julian Robertson had only $2.8 billion left after closing out all its short positions.
In an open letter to investors, Robertson issued a formal apology, announced plans to return the remaining funds, and declared that the Tiger Fund would close and its team disband. He also stated he would not re-enter the hedge fund arena in the near future.
The announcement sent shockwaves through the financial world.
As a leading figure in the hedge fund industry's rapid rise, Tiger Fund's collapse drew widespread attention. However, aside from the direct losses suffered by its investors, the broader hedge fund space only grew more enticing to potential entrants. After all, hedge funds are a zero-sum game: Tiger Fund's $10 billion loss was, on the other side, someone else's $10 billion gain.
While it was unclear exactly who profited, this dynamic alone was enough to attract waves of new capital and players to the industry.
Simon had been scaling back the size of Circe Capital's proprietary hedge fund division and focusing his bets in partnership with George Soros on Southeast Asia. As a result, Circe Capital's direct involvement in the spoils of Tiger Fund's collapse was limited. Circe Asset Management's conservative approach to its long positions had yielded a $1.2 billion profit over three months.
Most of Tiger Fund's losses, therefore, were absorbed by other hedge fund players.
Simon was not disappointed by this outcome.
Even he had anticipated that the Nasdaq might begin to shift course around December or January. With the profits from long positions already secured last year, Simon adhered to his principle of not chasing the last dollar. After all, a single day of Nasdaq volatility could wipe out months of gains.
Securing profits was the key.
In all areas of investment, one of the most common mistakes people make is refusing to stop when they should and hesitating to let go when it's necessary. Often, they mock those who chose to stop at the right time, believing they missed out on further profits.
In the end, such people often end up with nothing.
Apart from Tiger Fund's dramatic collapse, Richard Mellon Scaife of the Mellon family was another high-profile casualty. Having seen his $300 million in principal dwindle to less than $40 million, Scaife finally cut his losses and exited the market.
Simon's upcoming East Coast trip would not only include his routine visits to check on his pregnant partners but also involve laying the groundwork for further strategies regarding the Mellon family.
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