Small Funds; Big Returns

One of the panels at Artelligence earlier this week covered art funds and the conference goers were three deep around the fund managers after the session ended. With the results published in the Christian Science Monitor yesterday, it’s no wonder why:

In its three years, the nearly $20 million fund has returned 28.5 percent annually on sales from its collection.  […] Its first offering, called the American Masters Collection 1, has already reached its financial goal and is closed to new investors, reports its chairman, Alexander Kemper. That 10-year fund, which required a minimum investment of $132,000, was available only to qualified high-income and/or high net-worth investors.

Cayman Islands-based Artemundi Global Fund, which debuted last April, “is currently about one-third of the way toward its goal of becoming $150 million-to-$225 million,” reports the fund’s CEO, Javier Lumbreras, who manages it from Mexico City. The fund requires a $250,000 minimum investment for individuals.

It’s faring well so far, by all appearances. In its first year, the fund sold 20.7 percent of its holdings, achieving an average 150 percent return on each painting sold, Mr. Lumbreras says.

Art Market: Masterful Returns (Christian Science Monitor)