It’s always a danger when financial writers opine on the art market but Breaking Views decided to look at Steven Cohen’s 6% stake in Sotheby’s from a financial perspective. The $38m purchase probably isn’t a prelude to a buyout, they conclude but it could lead to a nice rise in the share price:

The upside could be considerable. The company can earn close to $150m in free cash flow in a good, if not vintage, year. That’s about what it made in 2004. Moreover, Sotheby’s owns 70pc of its London headquarters, which is worth perhaps $1bn, according to JMP Securities. The firm’s net debt of $246m doesn’t appear too burdensome either.

Steven Cohen’s Sotheby’s Bet is No Pickled Shark (Telegraph)