Private-equity firms searching for attractive ways to deploy capital have become active in the film business.

He calculates the intrinsic value by reviewing the company's profitability, its earnings and cash-flow growth and its success in deploying capital.

It's all about deploying capital effectively.

Hedge funds, if the markets obliged them, could use the money the opposite way, deploying capital to longer-term investments.

"We will deploy capital when we are getting compensated for the risk," he said.

The firm deploys capital "in a highly disciplined, risk-controlled manner," it noted.

Hedge funds, flush with cash, are also piling into private equity, raising funds as an alternative way of deploying capital.

Founded in 1990 by Kenneth C. Griffin, the firm today deploys capital across multiple asset classes and strategies.

Greenhill & Company has no debt and does not deploy capital to risky businesses like trading and lending.

"Hopefully, more shoes will fall in the mortgage derivative area, giving us an opportunity to deploy capital there," he said.