[intro]Never Contacted Saatchi for Advice[/intro]

The FT Adviser reports that Art Investment Advisers, the parent company of what was billed as the first hedge fund for art called The Art Trading Fund, is closing after a tw-and-a-half year run:

Fine Art Wealth Management, a consultancy, estimates that the number of global art funds has collapsed by 40% since the Lehman Brothers bankruptcy. “Pre Lehman we estimated there were over 50 art funds globally at various stages of development. It is unknown exactly how many art funds exist globally today. However we believe the number is probably closer to 20,” Randall James Willette, managing director, said.

The Art Trading Fund aimed to buy artwork in the lower to middle market range, paying up to £1m, while shorting 10 to 15 different economic indicators and securities that the directors believed exhibited a 96% correlation with the art market.

In its pitch, AIA claimed an advisory relationship with Charles Saatchi. The FT inquired about that with Saatchi:

AIA was not available for comment on the pending liquidation of the company or the fund’s £10.2m assets under management. However, a Saatchi spokesman stated that, “At present we have never been contacted for advice, but AIA are a paid-up sponsor and we would give advice if asked.”

Art Investment Firm to Close (FT Adviser)