Comments on: Art Funds as an Alternative Asset Class http://www.hedgeco.net/blogs/2009/06/10/art-funds-as-an-alternative-asset-class/ HedgeCo.Net Hedge Fund Blog & Opinions Fri, 22 Jan 2010 21:01:46 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Luis de Agustin http://www.hedgeco.net/blogs/2009/06/10/art-funds-as-an-alternative-asset-class/comment-page-1/#comment-5069 Luis de Agustin Sat, 27 Jun 2009 23:08:47 +0000 http://www.hedgeco.net/blogs/?p=542#comment-5069 Collectibles such as fine art and fine wine are another asset class that could be considered by long-term investors, especially under inflationary conditions (which are ahead). On a risk-return scale they are not appealing, nor are they liquid. But they have low or negative covariances with stocks and bonds. According to a recent research report by H.C. Wainwright & Co. Economics, fine art and wine do not boost the return on a portfolio of stocks and bonds except when the price of gold is rising fast and the economy is weak. Fine wine has some correlation with stocks, while art almost none, and both are inversely correlated with bonds; concluding, that either asset could be an attractive and diversifying component in stock and bond portfolios. Luis de Agustin Collectibles such as fine art and fine wine are another asset class that could be considered by long-term investors, especially under inflationary conditions (which are ahead). On a risk-return scale they are not appealing, nor are they liquid. But they have low or negative covariances with stocks and bonds.

According to a recent research report by H.C. Wainwright & Co. Economics, fine art and wine do not boost the return on a portfolio of stocks and bonds except when the price of gold is rising fast and the economy is weak.

Fine wine has some correlation with stocks, while art almost none, and both are inversely correlated with bonds; concluding, that either asset could be an attractive and diversifying component in stock and bond portfolios.

Luis de Agustin

]]> By: Thursday links: prominent investor seals of approval Abnormal Returns http://www.hedgeco.net/blogs/2009/06/10/art-funds-as-an-alternative-asset-class/comment-page-1/#comment-4412 Thursday links: prominent investor seals of approval Abnormal Returns Thu, 11 Jun 2009 16:53:14 +0000 http://www.hedgeco.net/blogs/?p=542#comment-4412 [...] economic crisis has not killed off the idea of really alternative asset classes.  (HedgeCo.Net, WSJ also Felix [...] [...] economic crisis has not killed off the idea of really alternative asset classes.  (HedgeCo.Net, WSJ also Felix [...]

]]>