Snoopy lures funds into branding firm

Fund managers are making a big bet on Snoopy, Lucy and Charlie Brown.

With a big-budget Peanuts film set to appear in cinemas next year, an unusually high number of US mutual funds have been buying shares of Iconix Brand Group, the little-known company that owns 80 per cent of the rights to the characters.

The number of new funds owning shares swelled 36 per cent last quarter, according to data from fund tracker Morningstar. That is a high number for a company with a market value of US$1.9 billion and a slowing core business, fund experts say.

Few consumers have ever heard of the firm, although they are likely familiar with its roster of 35 brands, ranging from mass-market staples like Joe Boxer and Ed Hardy to Cannon linens and Material Girl, the line of apparel and accessories from Madonna and her daughter. But with many of its US retail partners, struggling with falling traffic and weak consumer demand, Iconix is looking elsewhere to expand.

"With what is happening in America we don't see large growth there over the next couple of years, but we do see stability," chief executive Neil Cole told analysts after the company reported quarterly results in April.

Should the Peanuts movie prove to be a hit, it could help Iconix double its revenues, which hit US$433 million last year, Cole said.