Art Stocks & Funds

Overview

While investing in art assets can generate significant returns, it requires a "private-equity" styled approach that includes hands-on involvement. Further investments are needed after the purchase of art assets, as well as considerable focus on research, public communication and other essential steps aimed at enhancing the value of assets purchased.

Simply purchasing art and then sitting back to enjoy the acquisition will unlikely generate significant returns; in fact, ownership costs will make such investments look more expensive by the day. Furthermore, the art market's poor liquidity and exorbitant transaction costs will most likely make passive art investments loss makers in the event that one is forced to sell quickly.

For rational investors who seek exposure to the art market without actually having to buy art assets, there is an optional investment strategy to consider. This strategy focuses on investment in Art Stocks - publicly-traded companies in the art industry.

In September 2005, Skate's Art Market Research began to identify companies whose revenues and profits are generated primarily from products and services related to the art market. See also Skate's Art Indices.

As of April 30, 2013 this segment showed a combined market capitalization of only USD 3.5 billion. A single company - Sotheby's - dominates the segment, currently contributing 68% of the segment's total market capitalization. Sotheby's can accurately be considered a good proxy for the art stocks market.

Art Stocks (publicly traded companies in the Art Industry)

Company Listing / Currency April 2013 Performance YTD 2013 Performance Price as of Apr-30, 2013
USD
Price
52-wk Low
USD
Price
52-wk High
USD
Market Cap as of Apr-30, 2013
USD mln
Sotheby's NYSE / USD -5.2% 5.5% 35.48 27.43 40.49 2,405
Artprice.com Paris / EUR 3.4% -23.7% 31.08 23.68 51.64 199
Artnet Frankfurt / EUR -11.9% 1.5% 3.56 3.40 8.27 20
Collectors Universe NASDAQ / USD 1.2% 18.7% 11.91 9.25 16.75 97
Stanley Gibbons London / GBP 1.1% 8.8% 4.14 3.24 4.64 118
MCH Group Zurich / CHF 2.7% 10.2% 65.78 42.16 70.20 395
Mallett London / GBP 8.0% -0.9% 1.20 0.97 1.38 17
Abbey House Warsaw / PLN -11.0% -23.1% 1.75 1.40 3.53 19
Noble Investments London / GBP -0.9% 0.5% 3.24 2.64 3.53 50
Weng Fine Art Frankfurt / EUR -15.5% 2.6% 17.66 10.01 23.96 49
Art&Business Magazine Warsaw / PLN -48.6% -54.8% 0.15 0.13 0.77 2
Art Vivant Tokyo / JPY 9.6% 31.7% 3.44 2.27 3.63 53
Seoul Auctions Seoul / WON 10.4% 15.7% 3.21 2.27 3.49 54
Shinwa Art Auction Tokyo / JPY 34.0% 147.6% 795.60 267.25 898.90 46

Skate's Art Stocks Index -2.9% 5.4% 182.5 150.3 214.2 3,523
Skate's Investable Art Stocks Index -1.4% 4.1% 96.3 76.2 101.7 3,213

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