30 LOS ANGELES BUSINESS JOURNAL MAY 21, 2012

By ALFRED LEE Staff Reporter

THE net worth of William Barron Hilton istelling.

After being hit with $600 million in invest-ment losses during the downturn, the former hote-lier’s fortune shot back up by 45 percent in justtwo years on the strength of blue-chip stocks.

But in the last 12 months, that dramaticrebound slowed due to a stock market that –despite a lot of ups and downs – ended upalmost flat. The Business Journal calculatesthat Hilton, who sold his stake in the family’shotel chain in 2007, saw his wealth rise in thelast year by just 4 percent to $2.6 billion.

Still, his returns were larger than for manyof L.A.’s wealthiest residents, who after yearsof huge drops and rebounds spurred by the

downturn and recoverysaw an average gain ofonly 2.5 percent.

Mall magnate PeterLowy saw just a 1 percentrise to $760 million fromsmall gains in publiclytraded Westfield Groupand a family investmentvehicle. His net worth hadrisen 41 percent the previ-ous two years.

Media mogul Sumner Redstone did better,but that means his net worth rose by a steady 5percent to $4.4 billion. It marked a stark con-trast with his recent wild swings in value, down74 percent in 2009, up 65 percent in 2010 andup 42 percent last year.

“(The rebound) has really stalled. It’srenewing a lot of concerns,” said money man-ager Brad Levin, president of Legacy WealthPartners in Woodland Hills.

In all, the cumulative fortune of L.A.’s 50wealthiest residents rose roughly $3 billion, farsmaller than last year’s gain of 16 percent thatbrought them nearly $15 billion. Only 10 peo-ple on the list saw double-digit percentagegains from last year compared with 20 a yearago. The slowdown in growth also means theircumulative wealth remains below a high of$114 billion set prior to the downturn. Biotechentrepreneur Dr. Patrick Soon-Shiong toppedthe list for the fourth straight year with a networth up 3 percent to $8 billion.

Up and down Still, there were big winners and losers.

Shares of Public Storage Inc. rose about 20percent, propelling largest shareholder TamaraHughes Gustavson’s net worth from $2.4 bil-lion to $2.82 billion. And stock gains in elec-tric-car maker Tesla Motors Inc. helped landfounder Elon Musk on the list for the first time.His net worth is calculated at $2 billion.

Shares of construction company TutorPerini Corp., meanwhile, plummeted nearlyby half, contributing to Chief ExecutiveRonald Tutor’s decrease in net worth from$790 million to $615 million and dropping offthe Business Journal’s list.

Media and entertainment stocks were a

mixed bag. Walt Disney Co. continued itsstrong rebound. That propelled Michael Eisner,its former chief executive, to the $1 billion markon the strength of his company stock holdings.

On the other hand, a roughly one-thirdplunge in DreamWorks Animation SKGInc. shares dropped Chief Executive JeffreyKatzenberg from $930 million to $865 million.It also partially offset gains in other areas forco-founders Steven Spielberg and David Gef-fen, limiting the increases in their net worth.

Elsewhere, stock gains for Mercury GeneralCorp. and Qualcomm Inc. meant positivereturns for Mercury founder George Joseph andtelecommunications player Neil Kadisha, respec-tively. Double-digit losses at Occidental Petrole-um Corp. and Dole Food Co. led to declines inthe net worth of Occidental Chairman Ray Iraniand Dole Chairman David Murdock.

It also was a year some wealthy investorsmoved away from stocks.

Financier Michael Milken and his brother,Lowell, have been steadily reducing all of theirpublicly known stock holdings, recently selling offyet more shares in education companies

LeapFrog Enterprises Inc. and K12 Inc. Tutor’sstake in Tutor Perini has dwindled by half. AndKirk Kerkorian has sold off nearly $500 million inMGM Resorts International stock since 2008.

“It’s been really four solid years of moneymoving out of stock funds into bond funds andalternative strategies,” Levin said. “Peoplehave not been participating in stocks.”

One duo bucking that trend was HowardMarks and Bruce Karsh, the co-founders ofOaktree Capital Group. Oaktree had an ini-tial public offering in April. Though the IPOwas weaker than expected, each still reaped a$73 million payday and owns a 14 percentstake worth $900 million.

Real estate reboundThose with real estate holdings saw better

returns. Nationally, commercial properties areup 4 percent in value, according to Costar’sCommercial Repeat Sales Index, and the ClassA properties owned by local billionaires meanteven higher appreciation at those levels.

The hottest real estate sector continues to beapartments. Taking advantage has been Don-

ald Sterling, who told the Business Journal heowns 155 buildings in Southern Californiaafter acquiring 15 in the last year. Their appre-ciation helped drive a rise in his net worthfrom $2.6 billion to $3.25 billion.

“We saw probably the best returns over thelast year for people that were invested in apart-ment houses,” said money manager Lon Mortonof Morton Capital Management in Calabasas.

Mall developer Rick Caruso, owner of theGrove and Americana at Brand, jumped 10percent to $2.2 billion on an increase in valueon his nearly fully leased, low-debt portfolio.That’s up from $1.53 billion in 2009. Industrialdeveloper Ed Roski Jr., whose Majestic Real-ty Co. owns 73 million square feet of propertyacross the country, benefited from a rise inindustrial property values nationwide. TheBusiness Journal calculated that his net worthappreciated 4 percent to $2.3 billion.

Cable TV entrepreneur Marc Nathanson’snet worth jumped 10 percent based on diversi-fied investments, including real estate, which

Marginal ReturnsSPECIAL REPORTSPECIAL REPORT WEALTHIEST ANGELENOS

L.A.’SWEALTHIEST

Net Worth:�2.5%

Cumulative:$112 billion

Average:$2.23 billion

L.A.’s wealthiest residents sawtheir fortunes sway with thestock market this year. In theend, they reaped some ‘small’million-dollar gains.

House Call: Dr. Patrick Soon-Shiong, L.A.’s wealthiest resident, at the Culver City site of his new NantWorks offices.RINGO H.W. CHIU/LABJ

Please see page 32

The Los Angeles Business Journalis proud to present a tribute to thenonprofits of Los Angeles.

We honor those professionals and organizations that continueto make a positive impact on the community and do sounder difficult financial constraints. Equally as important arethe efforts of the corporations supporting these nonprofits.Many corporate executives volunteer time on boards and lendsupport through financial donations and sponsorships. Theseawards recognize both equally important groups.

CALL FOR NOMINATIONSNomination Deadline: Friday, May 25, 2012For more information visit labusinessjournal.com/bizevents

AWARDS LUNCHEONTuesday, June 19, 2012 • 11:00am-1:30pmMillennium Biltmore Hotel506 S. Grand Ave., Los Angeles, CA 90071

Individual tickets: $95 / corporate table of 10: $800

2012 AWARD CATEGORIES

Corporate Citizenship AwardsCorporate Partner of the YearLeadership ExcellenceVolunteer of the YearCorporate Social ResponsibilityIn-Kind Supporter

Nonprofi t Organizations,Leadership & Support Team AwardsOrganization of the Year(Small, Medium and Large Categories)

Leadership ExcellenceNonprofi t TeamProject CollaborationSocial Enterprise

PRESENTING SPONSOR: GOLD SPONSOR:

Wedbush BankPLATINUM SPONSOR:

32 LOS ANGELES BUSINESS JOURNAL MAY 21, 2012

he described to the Business Journal as “doinga little better.” Murdock’s losses at Dole werepartially offset by a vast real estate portfolioowned by privately held Castle & Cooke Inc.

Still, the struggles of two prominent localdevelopers were areminder that real estateis no easy game. Apart-ment developer AlanCasden lost control ofsix properties after abreakup with partnerCerberus CapitalManagement. Lendershave also filed for fore-closure on Casden’sBeverly Hills headquar-ters building. The trou-bles caused the Busi-ness Journal to drop hisnet worth from $2.63billion to $1.3 billion.Robert Maguire isunderwater on his mostvaluable property, the900-acre Solana business park in Dallas,resulting in an 8 percent drop in his net worthto $850 million.

New investmentsDespite the lackluster capital markets, the city’s

wealthiest residents aren’t sitting on the sidelines.One area that has received a lot of attention

are media and entertainment companies, partic-ularly those overseas. Forever 21 co-foundersDo Won and Jin Sook Chang, who saw their net

worth rocket from $2.45 billion to $4.3 billion,invested $43 million in a new South Korea TVchannel last year. Univision owner Haim Sabaninvested $30 million in Hong Kong televisioncompany Celestial Tiger Entertainment and$78 million in Indonesian broadcaster Nusan-tara Media. Kirk Kerkorian has indicated thathe was interested in entertainment industry

opportunities in the Chi-nese, Indian and LatinAmerican markets.

There was also plen-ty of local action in thatindustry as well. Enter-tainment mogul DavidGeffen invested in SonyCorp.’s $2.2 billion bidto buy EMI’s musicpublishing library.Pending approval, itwould be his first majorpublic entertainmentdeal since co-foundingDreamWorks. MichaelEisner is reportedlyinvesting in a film andtelevision productionventure for which he’s

seeking $800 million in financing.Local billionaires also vied to invest in

sports teams, most notably participating in thebidding process to buy the Los AngelesDodgers out of bankruptcy. Several of the peo-ple on the Business Journal’s list, includingCaruso, Casden and Soon-Shiong, placed bids.

When former Dodgers owner FrankMcCourt finally did sell the team, for $2.15billion to a group led by Guggenheim Part-ners, it was enough to land him back on the

Business Journal’s list at a net worth of $960million, even accounting for his divorce settle-ment, banker and attorney fees, taxes and debt.

Indeed, sports teams, long seen more as toysthan investments, proved to be an unlikelysource of big returns this year. Sterling’s LosAngeles Clippers, which he bought for $13 mil-lion in 1981, had their strongest season in yearsand continue to appreciate in value. Ed Roski Jr.also benefited from the increased worth in hisstakes in the Los Angeles Lakers, which jumpedin value by 40 percent due to a new televisiondeal, and the Los Angeles Kings.

“Most people that are buying sports teamsare almost doing it as a hobby,” wealth manag-er Morton said. “But there’s also the thoughtthat the value of sports teams is going higherand higher. It’s kind of a greater fool theory.”

Meanwhile, others got involved in politics –but sometimes less with ideology than businessin mind. Roski has contributed more than$75,000 to politicians in Pennsylvania, where

his Majestic Realty is trying to develop a 500-acre industrial park. Mercury’s George Joseph,meanwhile, is backing a November ballot mea-sure that would allow insurers to offer discountsto drivers who switch providers. A similar mea-sure he backed in 2010 was voted down.

The past 12 months also saw the city’swealthiest residents continue their involvement inphilanthropy. Among the biggest donors wereKerkorian, who donated $18 million to the AndreAgassi College Preparatory Academy in LasVegas; Lowell Milken, who donated $10 millionfor a new business law institute at UCLA; andBerkshire Hathaway Vice Chairman CharlesMunger, who gave $1.2 million in companyshares to his alma mater University of Michigan.

Warren Buffett and Bill Gates’ GivingPledge requiring signees give away a majorityof their wealth to philanthropy also attractedmore Wealthy Angelenos. At least eight L.A.residents have signed the pledge, including oneof the newest additions to the list, Tesla’s Musk.

SPECIAL REPORTSPECIAL REPORT WEALTHIEST ANGELENOS

Billionaires ClubThe number of L.A. billionaires dipped in 2012.

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12Source: Business Journal research

50

40

30

20

10

0

29

39

31

3838 3741 39

The Business Journal calculates the networth of L.A.’s wealthiest residents throughseveral methods. It asks all candidates fordetails on their portfolio, such as stock hold-ings, real estate, private equity investments anddebt. Some deny our request and ask to beremoved from our list. Others provide detailedinformation, some on the record, some off.

Reporters double check provided valuationsthrough the same methods they obtain valutionsfor those who decline to participate: by consultingpublic records, data bases and experts. Stock

holdings, for example, are often disclosed in Secu-rities and Exchange Commission filings, whilewealth managers, real estate brokers and industryconsultants can be very helpful.

The final numbers are fairly accurate, butsometimes it is difficult to obtain more than arough estimate for a minority who have privateholdings and refuse to cooperate. The list doesnot include residents other sources may cite asL.A. billionaires if we cannot obtain our ownindependent verification

– Laurence Darmiento

Following the Money

Continued from page 30

26 25 Stewart & Lynda Resnick $1,880 $1,880 027 10 John Tu 1,600 2,900 -4528 30 Gary Michelson 1,550 1,450 729 33 George Joseph 1,370 1,230 1130 34 Bruce Karsh 1,350 1,2501 831 35 Howard Marks 1,350 1,2501 832 12 Alan Casden 1,300 2,630 -5033 31 Michael Milken 1,250 1,400 -1134 39 Neil Kadisha 1,200 1,1001 935 32 Thomas Barrack Jr. 1,100 1,380 -2036 40 Marc Nathanson 1,050 950 1137 36 Charles Munger 1,020 1,100 -738 45 Michael Eisner 1,000 850 1839 * Frank McCourt 960 *40 43 John Shea 950 880 841 37 Lowell Milken 900 1,080 -1742 44 Frederick ‘Ted’ Field 870 870 043 41 Jeffrey Katzenberg 865 930 -744 42 Robert Maguire 850 925 -845 46 Aubrey Chernick 840 825 246 38 Ray Irani 800 1,050 -2447 47 Robert Day Jr. 770 800 -448 49 Peter Lowy 760 750 149 * Jerry Bruckheimer 750 *50 * James Cameron 650 *

MAY 21, 2012 LOS ANGELES BUSINESS JOURNAL 33

1 1 Patrick Soon-Shiong $8,000 $7,800 32 2 Eli Broad 6,600 6,300 53 3 Kirk Kerkorian 5,200 5,500 -54 4 David Geffen 4,800 4,500 75 5 Ron Burkle 4,500 4,300 56 6 Sumner Redstone 4,400 4,200 57 17 Do Won ‘Don’ & Jin Sook Chang 4,300 2,450 758 7 Haim Saban 3,350 3,700 -99 8 Steven Spielberg 3,300 3,200 3

10 24 Donald Sterling 3,250 2,6001 2511 18 Steven Udvar-Hazy 3,200 2,400 3312 11 A. Jerrold Perenchio 2,850 2,800 213 20 Tamara Hughes Gustavson 2,820 2,4001 1814 9 David Murdock 2,800 3,000 -715 13 Tom Gores 2,750 2,600 616 15 William Barron Hilton 2,600 2,500 417 14 Marion Anderson & Family 2,590 2,590 018 16 Jeffrey Skoll 2,430 2,480 -219 28 Anthony Pritzker 2,350 1,760 3320 19 Edward Roski Jr. 2,300 2,210 421 23 Alec Gores 2,250 1,910 1822 21 Rick Caruso 2,200 2,000 1023 22 Andrew & Peggy Cherng 2,100 1,950 824 * Elon Musk 2,000 *25 26 David Whitmire Hearst Jr. 1,900 1,800 6

2012 2011 %Rank Rank Angeleno 2012 2011 Change

1 recalculated *not on list in 2011

Net worth (in millions) 2012 2011 %Rank Rank Angeleno 2012 2011 Change

Net worth (in millions)

Wealthiest Angelenos Ranked by net worth

34 LOS ANGELES BUSINESS JOURNAL MAY 21, 2012

The List WEALTHIEST ANGELENOS Ranked by net worth

$8 BILLION

$6.6 BILLION

$5.2 BILLION

$4.8 BILLION

$4.5 BILLION

$4.4 BILLION

$4.3 BILLION

$3.35 BILLION

$3.3 BILLION

$3.25 BILLION

$3.2 BILLION

$2.85 BILLION

$2.82 BILLION

$2.8 BILLION

$2.75 BILLION

$2.6 BILLION

$2.59 BILLION

$2.43 BILLION

$2.35 BILLION

$2.3 BILLION

$2.25 BILLION

$2.2 BILLION

$2.1 BILLION

$2 BILLION

$1.9 BILLION

$1.88 BILLION

$1.6 BILLION

$1.55 BILLION

$1.37 BILLION

$1.35 BILLION

$1.35 BILLION

$1.3 BILLION

$1.25 BILLION

$1.2 BILLION

$1.1 BILLION

$1.05 BILLION

$1.02 BILLION

$1 BILLION

$960 MILLION

$950 MILLION

$900 MILLION

$870 MILLION

$865 MILLION

$850 MILLION

$840 MILLION

$800 MILLION

$770 MILLION

$760 MILLION

$750 MILLION

$650 MILLION

1. Patrick Soon-Shiong

2. Eli Broad

3. Kirk Kerkorian

4. David Geffen

5. Ron Burkle

6. Sumner Redstone

7. Do Won ‘Don’ & Jin Sook Chang

8. Haim Saban

9. Steven Spielberg

10. Donald Sterling

11. Steven Udvar-Hazy

12. A. Jerrold Perenchio

13. Tamara Hughes Gustavson

14. David Murdock

15. Tom Gores

16. William Barron Hilton

17. Marion Anderson & Family

18. Jeffrey Skoll

19. Anthony Pritzker

20. Edward Roski Jr.

21. Alec Gores

22. Rick Caruso

23. Andrew & Peggy Cherng

24. Elon Musk

25. David Whitmire Hearst Jr.

26. Stewart & Lynda Resnick

27. John Tu

28. Gary Michelson

29. George Joseph

30. Bruce Karsh

31. Howard Marks

32. Alan Casden

33. Michael Milken

34. Neil Kadisha

35. Thomas Barrack Jr.

36. Marc Nathanson

37. Charles Munger

38. Michael Eisner

39. Frank McCourt

40. John Shea

41. Lowell Milken

42. Frederick ‘Ted’ Field

43. Jeffrey Katzenberg

44. Robert Maguire

45. Aubrey Chernick

46. Ray Irani

47. Robert Day Jr.

48. Peter Lowy

49. Jerry Bruckheimer

50. James Cameron

3. KIRK KERKORIANNET WORTH: $5.2 BILLION | �5% | LAST YEAR: $5.5 BILLION

AGE: 94 RESIDENCE: BEVERLY HILLS

SOURCE OF WEALTH: INVESTMENTS, CASINOS

4. DAVID GEFFENNET WORTH: $4.8 BILLION | �7% | LAST YEAR: $4.5 BILLION

AGE: 69 RESIDENCE: MALIBU

SOURCE OF WEALTH: MUSIC, MOVIE PRODUCTION

1. PATRICK SOON-SHIONGNET WORTH: $8 BILLION | �3% | LAST YEAR: $7.8 BILLION

AGE: 59 RESIDENCE: WEST LOS ANGELES

SOURCE OF WEALTH: PHARMACEUTICALS

2. ELI BROADNET WORTH: $6.6 BILLION | �5% | LAST YEAR: $6.3 BILLION

AGE: 78 RESIDENCE: LOS ANGELES

SOURCE OF WEALTH: HOMEBUILDING, INSURANCE

THE TOP10THE TOP10

5. RON BURKLENET WORTH: $4.5 BILLION | �5% | LAST YEAR: $4.3 BILLION

AGE: 59 RESIDENCE: BEVERLY HILLS

SOURCE OF WEALTH: SUPERMARKETS, INVESTMENTS

7. DO WON ‘DON’ & JIN SOOK CHANGNET WORTH: $4.3 BILLION | �75% | LAST YEAR: $2.45 BILLION

RESIDENCE: BEVERLY HILLS

SOURCE OF WEALTH: APPAREL RETAILING

8. HAIM SABANNET WORTH: $3.35 BILLION | �9% | LAST YEAR: $3.7 BILLION

AGE: 67 RESIDENCE: BEVERLY HILLS

SOURCE OF WEALTH: TV PRODUCTION, BROADCASTING

6. SUMNER REDSTONENET WORTH: $4.4 BILLION | �5% | LAST YEAR: $4.2 BILLION

AGE: 88 RESIDENCE: BEVERLY HILLS

SOURCE OF WEALTH: BROADCASTING, MOVIE THEATERS

9. STEVEN SPIELBERGNET WORTH: $3.3 BILLION | �3% | LAST YEAR: $3.2 BILLION

AGE: 65 RESIDENCE: PACIFIC PALISADES

SOURCE OF WEALTH: ENTERTAINMENT

10. DONALD STERLINGNET WORTH: $3.25 BILLION | �25% | LAST YEAR: $2.6 BILLION

AGE: 76 RESIDENCE: MALIBU

SOURCE OF WEALTH: REAL ESTATE

� WINNERS & LOSERS See page 36

SPECIAL REPORTSPECIAL REPORT WEALTHIEST ANGELENOS

36 LOS ANGELES BUSINESS JOURNAL MAY 21, 2012

� THE LISTContinued from page 34

+$1.85 BILLION

+$800 MILLION

+$650 MILLION

+$590 MILLION

+$420 MILLION

+$300 MILLION

+$300 MILLION

+$340 MILLION

+$200 MILLION

+$200 MILLION

+$200 MILLION

+$150 MILLION

+$150 MILLION

+$150 MILLION

+$140 MILLION

+$100 MILLION

+$100 MILLION

+$100 MILLION

+$100 MILLION

+$100 MILLION

+$100 MILLION

+$100 MILLION

+$100 MILLION

+$90 MILLION

+$70 MILLION

+$50 MILLION

+$15 MILLION

+$10 MILLION

0

0

0

-$30 MILLION

NEW TO LIST

-$50 MILLION

-$65 MILLION

-$80 MILLION

-$150 MILLION

-$280 MILLION

-$180 MILLION

-$200 MILLION

-$250 MILLION

-$300 MILLION

-$350 MILLION

-$1.3 BILLION

-$1.33 BILLION

WINNERS& LOSERSWINNERS& LOSERS

ARRIVALSARRIVALS

DO WON “DON” & JIN SOOK CHANGCouple’s fast-growing Forever 21fast-fashion company shows nosigns of slowing down.

+$200 MILLION

DEPARTURESDEPARTURES

JOHN TUFalling price of computer memorysharply lowered value of hisKingston Technology Co.

ALAN CASDENBreakup with partner CerberusCapital Management took heavy tollon net worth of apartment developer.

DONALD STERLINGReal estate investor benefited fromrising value of his upscale apart-ments and winning L.A. Clippers.

TOM GORESBusy private equity titan made 17 acquisitions and closed deal to buyhis hometown Detroit Pistons.

ELON MUSKMultitalentedelectric-car andaerospace entrepreneur nowcalls Los Angeleshome.

FRANKMCCOURTDodgers’ $2.15billion sale pricereturns him to listafter absence dueto divorce andteam bankruptcy.

JERRYBRUCKHEIMERBlockbuster kingreturns to list afterlatest “Pirates”installment does$1 billion at boxoffice.

JAMESCAMERON“Avatar” directorreaps returnsfrom residualsand rereleasing“Titanic” in 3-D.

ALFRED MANNBiotech entrepre-neur still hasMulholland man-sion but nowcalls Las Vegashome.

RONALD TUTORStudio chief andconstructiontycoon hurt byfalling value ofTutor Perinistock.

STEPHEN BINGScion of NewYork real estatefamily appears tohave had networth overesti-mated in past.

GEORGE RANDOLPHHEARST JR.Aging newspaperheir now spendshis time at PasoRobles ranch.

SPECIAL REPORTSPECIAL REPORT WEALTHIEST ANGELENOS

Do Won ‘Don’ & Jin Sook Chang

Steven Udvar-Hazy

Donald Sterling

Anthony Pritzker

Tamara Hughes Gustavson

Alec Gores

Eli Broad

David Geffen

Patrick Soon-Shiong

Ron Burkle

Sumner Redstone

Rick Caruso

Tom Gores

Andrew & Peggy Cherng

Michael Eisner

George Joseph

Steven Spielberg

William Barron Hilton

David Whitmire Hearst Jr.

Gary Michelson

Bruce Karsh

Howard Marks

Neil Kadisha

Marc Nathanson

Edward Roski Jr.

John Shea

A. Jerrold Perenchio

Aubrey Chernick

Peter Lowy

Marion Anderson & Family

Stewart & Lynda Resnick

Frederick ‘Ted’ Field

Elon Musk

Frank McCourt

Jerry Bruckheimer

James Cameron

Robert Day Jr.

Jeffrey Skoll

Jeffrey Katzenberg

Robert Maguire

Charles Munger

Michael Milken

Lowell Milken

David Murdock

Ray Irani

Thomas Barrack Jr.

Kirk Kerkorian

Haim Saban

John Tu

Alan Casden

-$75 MILLION