Our Portfolio Management Services are not offered as subjective curation advice but rather as a 360-degree review of collected fine art to provide stake holders, and their advisors with a tool that establishes the framework to protect their art as a managed asset now and well into the future. This service provides an unbiased review that will allow collectors to anticipate and develop strategies to protect accumulated value and enrich the potential for continued gains and future enjoyment of their collection. One size does not fit all collectors but a disciplined approach to collecting, keeping information, tracking and valuing assets can benefit all art investors.
Portfolio Management best practices include:
Setting clear goals and objectives, establishing benchmarks and milestones
Developing most effective account structure for holding and reporting assets
Risk management and multi-faceted reporting
Custom analytics and research for market analysis
Establish strong buy, sell and hold disciplines
Regular valuation and review
Is now the right time to buy a Condo, a George Condo?
The markets inside the fine art market are many and varied and represent very different opportunities to a collector. Likewise there are markets within each artist. While the distinctions can be subtle the impact can be significant to future valuation. So is now the time to buy a Condo, a George Condo?
The market for a George Condo major work is up significantly as the whimsical and popular artist catches on with savvy collectors. In fact by tracking the average valuation given to his last 20 works at auction by comparison to that same Condo market five years ago we see an increase of 160%, or a general increase in prices in the area of 21% annually. During the same period, one might have expected 44% gain in say a 3-bedroom Miami Condo a 7.5% annual gain, or roughly the same gain from the S&P Index of 50% or an annual return of 8.5%. So extremely hot artists, real estate markets and stock markets are not the same.
But can one still buy a Condo (George) and feel good about it from an investment perspective? Well if one looks at auction estimates vs. actual sales (below) the answer is yes. Here we use auction estimates as a lagging indicator and see where valuation professionals have yet to accurately and reliably gage buying interest for George Condo’s major works.
In addition to insights and observations such as those above our Fine Art Portfolio Management Services can include:
- Portfolio assessment, associated market risks and opportunity for growth
- Assessment of valuation tools available and being used
- Metrics development for future comparison, valuation and ongoing tracking
- Review of collection information, how it is kept and discussion of tools to assist curation
- Documentation review to assess the strength and value of provenance on collected assets
- Review of Insurance, and ways to maximize coverage and minimalize expense
- Security analysis for theft and elemental damage risk protection
- Condition assessment and condition related risk review
- Succession and tax planning and ownership strategy review for asset protection
- Opportunity review for lending and leverage opportunity on held assets
- Marketing, and exhibition strategies to enhance valuation
- Review of consignment loans, potential income streams and maintenance cost reductions
- Goals assessment and diversification strategies
- Master plan development memorializing advice, and upkeep