Friday, 19 October 2007

The fund factor

This summer, Art + Auction published its annual investment guide, edition 2007. Next to must-read articles on fakes, art indexes and auction room practices, it also featured a short interview with Chris Carlson, one of the founders of the Art Trading Fund. The fund "buys and sells pieces directly through its own network of artists, dealers and auction houses, (...) providing downside protection by taking short positions in securities with a high correlation to the art market (think Sotheby's and luxury goods)". Yes, a hedge fund. Carlson: "To say the art market can be made look like another financial market is wrong. To say that we can look at art over time and understand the way in which returns have been generated (...) is absolutely accurate." The minimum intial investment is about $200,000.

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