Collectible Investments for the High Net Worth Investor

Chapter Art as a Financial Investment

The comparatively poor performance of traditional asset classes in recent years has driven the search for greater returns via alternative asset classes. The desire to reap higher risk-adjusted returns from diversification into assets that offer low and even negative correlation with equities and bonds is extremely desirable. There has been a huge growth in the traditional alternative investments such as real estate, commodity futures, private equity, and hedge fund investments. Additionally, a number of funds specializing in art have recently emerged. These also appear to offer a highly beneficial diversification strategy with extremely low correlation with traditional asset classes. It is important for investors ...