More Fund Managers Eyeing Art Investments — But Will They Rely On The “Old Favorites” Or Buy Art From Emerging Art Powerhouses Like China?
Wang Jin, Knocking at the door, 1995 © Wang Jin
The New York Times recently wrote on art funds becoming a popular option for investors looking to diversify their asset holdings as the global economic crisis eases and investors crave more diverse investment destinations. Art funds, which dipped in popularity as the crisis took hold, have actually increased in number over the years, with many focusing only on one type of art or period. As the author points out, individuals who had been burned by risky investments in the pre-recession years are again looking at art as a wise investment:
“The art market has taken in the corrections. People are confident at today’s price levels,” said Anders Petterson, founder of ArtTactic, a London-based art market research firm, in a comment posted on the company’s Web site. “We are reaching the bottom, assuming the stock market does not dip again.”
Reflecting the new hesitance to put money towards the great-risk-but-great-rewards-maybe investments of the world like real estate, art investment funds are now getting more creative. Some funds are going against the grain, putting money toward assets that are not expected to bring quick, huge returns yet are expected to appreciate over time and — perhaps most importantly — outpace inflation. Since massive global spending on stimulus packages and the like are expected to bring at least SOME measure of inflation into the picture, investors are looking at assets that will keep their money in check, and allow it to grow at a sustainable pace. Continue reading
Posted in Art, auction, Business, China, Chinese Art, Investment
Tagged Art, art fund, art investment, castlestone, China, chinese, fund, hedge, Investment, wang jin
Fund Managers Moving Towards Art As Investment Diversifier, Will These Managers Balance Their Art Portfolio Investments With A Global Mix?
Castlestone is investing in western artists like De Kooning. By focusing only on western art, is the fund going to miss out on higher returns later?
We have written before on Castlestone Management, a $660 million investment fund that focuses on works of art, which the fund feels is a better investment over the long term than traditional hedges like gold or other hard assets. Today, Bloomberg has an excellent profile of the fund, noting that it is designed to benefit from one of art’s great features — a resistance to the great asset de-valuer: inflation. Castlestone, and art investment funds like it are , Farah Nayeri writes, “designed as an anti-inflation shelter at a time when recession-busting stimulus packages are flooding the global economy with cash.” So with the number of these funds increasing, as investors look for inflation-defying destinations for their money, will they get with the program and look for a more global mix, made up of Chinese, Indian, and other emerging artists? Or will they stick to their Picassos and Warhols?
It looks like Castlestone may be up for anything as time goes on, but at the moment they seem to be a bit top-heavy with artists who are late in their career. However, with this sort of fund growing and becoming more popular with inflation-weary investors who aren’t up for the rollercoaster ride of investing in gold, stocks, or jewels, an art fund might be just the thing.
Posted in Art, Business, China, Chinese Art, Culture, Economics, Investment, Museums
Tagged alexander calder, australia, bloomberg, castlestone, China, contemporary art, farah nayeri, fine art fund group, fund, gold, google, hedge, Investment, investment fund, jean-michel basquiat, philip hoffman, picasso, reuters, warhol, willem de kooning, zhang huan