Developing Markets Contemporary Masterpieces from · 2017. 11. 30. · Sale Date: July 5, 2013 Sale...
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Contemporary Masterpieces from Developing Markets Realized works December 2017
Transcript of Developing Markets Contemporary Masterpieces from · 2017. 11. 30. · Sale Date: July 5, 2013 Sale...
Contemporary Masterpieces from Developing Markets
Realized worksDecember 2017
Youssef Nabil (b.1972, Egypt)
Amani by Window, 1993
Collection: Middle East
Acquisition Date: March 30, 2011
Acquisition price: $23,500
Sale Date: December 28, 2011
Sale Price: $41,797
Period: 9 months
Profit: $18,297
Return: 78%
IRR: 116%
Sale strategyArbitrage: acquired another edition of same work.
Sale strategy
Mona Hatoum (b.1952, Lebanon)
Plotting table, 1998
Collection: Middle East
Acquisition Date: December 14, 2011
Acquisition Price: $90,341
Sale Date: January 13, 2012
Sale Price: $153,023
Period: 1 month
Profit: $62,682
Return: 70%
IRR: 60,802%*
*70% return in 1 month (formula compounds this 12 times)
Event Driven: Artist asked to re-acquire work for her foundation immediately after purchase.
Sale strategy
Mona Hatoum (b.1952, Lebanon)
Undercurrent, 2004
Collection: Middle East
Acquisition Date: December 14, 2011
Acquisition Price: $217,203
Sale Date: January 13, 2012
Sale Price: $293,309
Period: 1 month
Profit: $76,106
Return: 35%
IRR: 3766%
Event Driven: Artist asked to re-acquire work for her foundation immediately after purchase.
Aya Takano (b.1976, Japan)
The chamber of underrawings, 2010
Collection: Far East
Acquisition Date: July 1, 2011
Acquisition Price: $72,960
Sale Date: April 7, 2012
Sale Price: $93,327
Period: 9 months
Profit: $20,367
Return: 28%
IRR: 38%
Sale strategyStrategic: Japan not a focus market for the collection, gradually selling down the only Japanese artist in the collection.
Rodel Tapaya (b.1980, Philippines)
The magic dog , 2011
Collection: South Asia
Acquisition Date: April 18, 2011
Acquisition Price: $6,000
Sale Date: December 6, 2012
Sale Price: $14,748
Period: 20 months
Profit: $8,748
Return: 146%
IRR: 73%
Sale strategyOpportunistic: An artist we identified very early and whose secondary market demand is extremely strong. We have acquired other more major works for the collection.
Sale strategyYoussef Nabil (b.1972, Egypt)
Ali in abaya, 2007
Collection: Middle East
Acquisition Date: March 30, 2011
Acquisition Price: $3,750
Sale Date: December 20, 2012
Sale Price: $5,450
Period: 21 months
Profit: $1,700
Return: 45%
IRR: 24%
Event Driven: Sold back to original seller as work was not delivered.
Collection: Middle East
Acquisition Date: March 30, 2011
Acquisition Price: $3,750
Sale Date: December 20, 2012
Sale Price: $5,450
Period: 21 months
Profit: $1,700
Return: 45%
IRR: 24%
Sale strategyYoussef Nabil (b.1972, Egypt)
Ayman sleeping, 2005
Event Driven: Sold back to original seller as work was not delivered.
Pieter Hugo (b.1976, South Africa)
Jatto with Mainasara, Ogere-Remo, Nigeria, 2007
Collection: Africa
Acquisition Date: March 30, 2011
Acquisition Price: $18,040
Sale Date: April 15, 2013
Sale Price: $34,300
Period: 25 months
Profit: $16,260
Return: 90%
IRR: 37%
Sale strategyArbitrage: acquired 2 other works from same series at preferential price.
Adriana Varejão (b.1964, Brazil)
Pele , 1996
Collection: Latin America
Acquisition Date: November 5, 2011
Acquisition Price: $375,939
Sale Date: June 26, 2013
Sale Price: $625,000
Period: 20 months
Profit: $249,061
Return: 66%
IRR: 36%
Sale strategyOpportunistic: reverse inquiry by auction house that did a valuation of the collection. Placed in a private transaction.
Rodel Tapaya (b.1980, Philippines)
Creation of the Bat, 2011
Collection: South Asia
Acquisition Date: February 14, 2012
Acquisition Price: $6,500
Sale Date: July 5, 2013
Sale Price: $20,121
Period: 17 months
Profit: $13,621
Return: 210%
IRR: 126%
Sale strategyOpportunistic: An artist we identified very early and whose secondary market demand is extremely strong. We have acquired other more major works for the collection.
Collection: Far East
Acquisition Date: July 1, 2011
Acquisition Price: $65,460
Sale Date: July 5, 2013
Sale Price: $81,743
Period: 24 months
Profit: $16,283
Return: 25%
IRR: 12%
Sale strategy
Aya Takano (b.1976, Japan)
The Chamber of Spring Pines, 2010
Strategic: Japan not a focus market for the collection, gradually selling down the only Japanese artist in the collection.
El Anatsui (b.1944, Ghana)
Energy Spill, 2010
Collection: Africa
Acquisition Date: March 25, 2011
Acquisition Price: $515,000
Sale Date: July 31, 2013
Sale Price: $891,767
Period: 28 months
Profit: $376,767
Return: 73%
IRR: 26%
Sale strategyEvent Driven + Arbitrage: Placed in London auction at same time as artist draped the façade of the Royal Academy of Arts and immediately after a very strong result at another auction in New-York. In parallel, acquired a similar work at a preferential price.
Sale strategyVik Muniz (b.1961, Brazil)
The Birth of Venus, after Botticelli, 2008 | Edition: 4/6 + 4 AP
Collection: Latin America
Acquisition Date: July 1, 2011
Acquisition Price: $110,635
Sale Date: July 31, 2013
Sale Price: $239,970
Period: 25 months
Profit: $129,335
Return: 117%
IRR: 45%
Arbitrage: Sold privately via a secondary market gallery and in parallel acquired the last available edition of this work in the primary market.
Entang Wiharso (b.1969, Indonesia)
Stay Focus, 2011
Collection: South Asia
Acquisition Date: March 14, 2013
Acquisition Price: $15,000
Sale Date: December 31, 2013
Sale Price: $23,095
Period: 10 months
Profit: $8,095
Return: 54%
IRR: 72%
Sale strategyOpportunistic: Strong demand for artist in auctions after Venice Biennale participation. Retain 2 other works from same series in the collection.
Rodel Tapaya (b.1980, Philippines)
The Secrets of the Forest , 2010
Collection: South Asia
Acquisition Date: December 2, 2011
Acquisition Price: $8,000
Sale Date: December 31, 2013
Sale Price: $20,529
Period: 25 months
Profit: $12,529
Return: 157%
IRR: 57%
Sale strategyOpportunistic: An artist we identified very early and whose secondary market demand is extremely strong. We have acquired other more major works for the collection.
Do Ho Suh (b.1962, Korea)
Karma, 2010
Collection: Far East
Acquisition Date: July 1, 2011
Acquisition Price: $450,000
Sale Date: May 7, 2014
Sale Price: $643,950
Period: 35 months
Profit: $193,950
Return: 43%
IRR: 13%
Sale strategyMarket timing: Announcements that other editions of the work had been placed in Museum Collections across the US and fact that this version was sold out in the primary market, sparked interest of auction house for Asia sale. Obtained strong marketing promise. Artist’s market deemed mature at these price levels and the holding costs of this large scale sculpture tilted a difficult decision to part with it.
Collection: Far East
Acquisition Date: July 1, 2011
Acquisition Price: $82,960
Sale Date: July 2, 2014
Sale Price: $98,529
Period: 36 months
Profit: $15,569
Return: 19%
IRR: 6%
Sale strategy
Aya Takano (b.1976, Japan)
The Chamber of Ivy Lane Byobu, 2010
Strategic: Japan not a focus market for the collection, gradually selling down the only Japanese artist in the collection.
Os Gemeos (b.1974, Brazil)
Sem Titulo, 2009
Collection: Latin America
Acquisition Date: July 1, 2011
Acquisition Price: $45,590
Sale Date: August 14, 2014
Sale Price: $90,000
Period: 36.5 months
Profit: $44,410
Return: 97%
IRR: 24%
Sale strategyRelative Value: Work sold into strong US market for the artists following their solo exhibition at the ICA in Boston and some good auction results. Proceeds used for new acquisitions of younger artists in Latam.
El Anatsui (b.1944, Ghana)
They Saw us Through Puffs of Smoke, 2011
Collection: Africa
Acquisition Date: July 2, 2014
Acquisition Price: $650,000
Sale Date: November 24, 2014
Sale Price: $783,950
Period: 5 months
Profit: $133,950
Return: 21%
IRR: 60%
Sale strategyArbitrage: Following valuation of the collection by an auction house, they requested an El Anatsui work. Work was sourced, shown and conditions agreed prior to finalizing acquisition. Source cooperated with fully disclosed strategy.
Collection: Latin America
Acquisition Date: July 1, 2011
Acquisition price: $9,600
Sale Date: December 30, 2014
Sale Price: $70,000
Period: 41 months
Profit: $60,400
Return: 629%
IRR: 72%
Sale strategy
Adrian Villar Rojas (b.1980, Argentina)
Shelf, 2008/2011
Market timing: Work commissioned by collection in 2011, just before the artist’s career broke out internationally thanks to participation in Venice Biennale, swiftly followed by Documenta, New Museum and MOMA PS1 among others. Interest around the artist peaked following his major solo at the Serpentine gallery, inaugurating the new wing. This complex and fragile work was sold and replaced by a really rare painting by the artist, to better complement the other works still held in collection. This was the first and still only work by the artist at auction. Artist remains a key investment with 4 other important works held. Artist and all his representing galleries were involved in the sale process.
Shirazeh Houshiary (b.1955, Iran)
Breath, Reed, an invisible Poem, 1987
Collection: Middle East
Acquisition Date: March 20, 2012
Acquisition Price: $19,137
Sale Date: March 16, 2015
Sale Price: $36,204
Period: 36 months
Profit: $17,067
Return: 89%
IRR: 24%
Sale strategyStrategic: This work was acquired at auction in 2012 as identified to be substantially underpriced compared to primary market. Holding costs of such large piece are prohibitive however in long term. Work was acquired with some condition issues. Decision to sell based on recent result achieved by auction house for smaller sculpture. Eventually work was sold through same auction house and achieved new world auction record for a sculpture by the artist.
Sale strategyVik Muniz (b.1961, Brazil)
The Birth of Venus, after Botticelli, 2008 | Edition: 1/4 AP
Collection: Latin America
Acquisition Date: August 12, 2013
Acquisition Price: $126,650
Sale Date: July 2, 2015
Sale Price: $164,000
Period: 23 months
Profit: $37,350
Return: 29%
IRR: 14%
Strategic: We sold another edition of this work and had bought this one as an arbitrage opportunity. We also feel the market of Muniz is somewhat saturated with many works available in the auction market. We recently acquired another work from the “Pictures of Magazine” series that better complements what we already have. We reduce exposure to Muniz.
Sale strategy
Gupta, Subodh (b.1964, India)
Family Nest No. 1, 2012
Collection: South Asia
Acquisition Date: May 29, 2012
Acquisition Price: $225,000
Sale Date: August 25, 2015
Sale Price: $225,000
Period: 39 months
Profit: $0
Return: 0%
IRR: 0%
Strategic/Rebalancing: We feel Gupta’s market is suffering from illiquidity in the overall Indian contemporary art market and we have another work by him we intend to hold on to. The Indian cotemporary market continues to be weak and we had opportunities to reinvest the proceeds in new artists from other areas that hold greater investment potential.
Sale strategy
Kami, Y. Z. (b.1956, Iran)
Self-Portrait as a Child, 1989
Collection: Middle East
Acquisition Date: October 4, 2011
Acquisition Price: $68,500
Sale Date: September 30, 2015
Sale Price: $130,000
Period: 48 months
Profit: $61,500
Return: 90%
IRR: 18%
Opportunistic: This work was sold at auction via Phillips soon after Kami’s exhibition had come down at Gagosian Gallery and a similar work to ours had been placed in a prominent Museum collection. The result was strong, setting a new world auction record of $161’000 for the artist. We acquired the work at another auction 4 years earlier for $68’500.
Sale strategy
Aboudia (b.1983, Ivory Coast)
Untitled , 2014
Collection: Africa
Acquisition Date: September 3, 2014
Acquisition Price: $5,000
Sale Date: November12, 2015
Sale Price: $15,226
Period: 14 months
Profit: $10,226
Return: 205%
IRR: 155%
Market Timing: The work was sold via Bonhams’ London African sale which took place in parallel to Frieze London and the 1-54 African Art Fair, capturing the enhanced visibility of African art. The work sold for a new world auction record for Aboudia of $19’340. It is similar to several other works held in the collection.
Sale strategy
Abdoulaye Konate (b.1961, Mali)
Generation Biometrique n5, 2008-2013
Collection: Africa
Acquisition Date: September 09, 2013
Acquisition Price: $37,461
Sale Date: November 12, 2015
Sale Price: $37,912
Period: 26 months
Profit: $451
Return: 1%
IRR: 1%
Market Timing: Sold at Bonhams’ African sale that took place in parallel to Frieze London and the 1-54 African Art Fair. The work featured on the cover of the catalog and achieved a new auction record for the artist at $48’350. Another important work remains in the collection. Profit was marginal due to sharp depreciation of euro over the 2+ year hold period.
Sale strategy
Tapaya, Rodel (b.1980, Philippines)
Mountain Fantasies, 2012
Collection: South Asia
Acquisition Date: March 23, 2013
Acquisition Price: $19,500
Sale Date: December 25, 2015
Sale Price: $51,594
Period: 33 months
Profit: $32,094
Return: 165%
IRR: 42%
Opportunistic: We were approached by Christie’s for a Tapaya work, whose market they felt was very strong. They promised to highlight the work and feature it as a cover lot of their HK day sale. They also provided a strong estimate and reserve. Having recently acquired another large scale Tapaya that we prefer, we decided to go ahead with the sale.
Sale strategy
Tapaya, Rodel (b.1980, Philippines)
Big Fish, 2010
Collection: South Asia
Acquisition Date: December 2, 2011
Acquisition Price: $7,000
Sale Date: April 6, 2016
Sale Price: $123,350
Period: 53 months
Profit: $116,350
Return: 1662%
IRR: 93%
Opportunistic: After conducting further research and analyses of auction results for Tapaya, it became clear that his principal buyers are Filipino and hence placing the works directly there should be beneficial. We contacted Salcedo auction house who had realized the best results and placed the work extremely successfully with them.
Sale strategy
Javier, Geraldine (b.1970, Philippines)
Blood Type C (Catholic), Major Major G (Guilt), 2011
Collection: South Asia
Acquisition Date: February 14, 2012
Acquisition Price: $55,720
Sale Date: April 6, 2016
Sale Price: $58,429
Period: 50 months
Profit: $2,709
Return: 5%
IRR: 1%
Strategic: The artist’s market has been getting weaker for some time. Storage costs for this large piece are an important consideration. The subject matter of the work is challenging for many. We took the opportunity to place at Salcedo along with the Tapaya and were happy to sell, even with almost no profit.
Sale strategy
Pepperstein, Pavel(b.1966, Russia)
And from Granddad He didn’t Escape, 2009
Collection: Eastern Europe
Acquisition Date: November 10, 2011
Acquisition Price: $9,603
Sale Date: June 27, 2016
Sale Price: $7,272
Period: 55 months
Profit: $(2,331)
Return: -24%
IRR: -6%
Strategic: As the fund reaches it’s mid life cycle the focus now turns towards selling down the less important works, particularly in those markets where we did not really build a significant collection, such as Eastern Europe. In tandem, we look to actively enhance the value of the best works we’ve acquired through active loans, collaborations, exhibitions and publications.
Sale strategy
Pepperstein, Pavel (b.1966, Russia)
Who is to Blame?, 2011
Collection: Eastern Europe
Acquisition Date: November 28, 2011
Acquisition Price: $6,621
Sale Date: June 27, 2016
Sale Price: $6,611
Period: 55 months
Profit: $(10)
Return: 0%
IRR: 0%
Strategic: As the fund reaches it’s mid life cycle the focus now turns towards selling down the less important works, particularly in those markets where we did not really build a significant collection, such as Eastern Europe. In tandem, we look to actively enhance the value of the best works we’ve acquired through active loans, collaborations, exhibitions and publications.
Sale strategy
Hugo, Pieter (b.1976, South Africa)
Mohammed Rabiu with Jamis, Asaba, NIgeria, 2007
Collection: Africa
Acquisition Date: July 1, 2011
Acquisition Price: $20,000
Sale Date: April 28, 2016
Sale Price: $30,000
Period: 57 months
Profit: $10,000
Return: 50%
IRR: 9%
Opportunistic: We acquired 2 comparable Pieter Hugo works in the primary market for $20’000 each.
Sale strategy
Aboudia (b.1983, Ivory Coast)
Untitled, 2013
Collection: Africa
Acquisition Date: October 22, 2013
Acquisition Price: $6,134
Sale Date: July 28, 2016
Sale Price: $18,841
Period: 33 months
Profit: $12,707
Return: 207%
IRR: 50%
Opportunistic: The artist’s market has been expanding and we were able to acquire numerous works ahead of time. Interest in African contemporary has been rising rapidly and we were approached by a Parisian auction house, PIASA, to consign a few works for their inaugural African auction. We placed this Aboudia which sold very well, setting the current auction record for the artist – almost $25’000 including auction house commission.
Sale strategy
Cruz, Jigger (b.1984, Phillipines)
Western Style; the Painter’s Eye, in Fine Frenzy Rolling, 2014
Collection: South Asia
Acquisition Date: November 18, 2014
Acquisition Price: $12,500
Sale Date: November 9, 2016
Sale Price: $20,580
Period: 24 months
Profit: $8,080
Return: 65%
IRR: 29%
Opportunistic: The auction market for Jigger Cruz has been extremely strong in the past 2 years. We were looking to sell 1 of the 4 works we owned into the strength of the market so chose this work which is the least significant of the four. The result was somewhat disappointing as his market seems to be cooling off somewhat.
Sale strategy
Xiaodong, Liu (b.1963, China)
Green Pub 3, 2013
Collection: Far East
Acquisition Date: October 14, 2013
Acquisition Price: $12,000
Sale Date: November 9, 2016
Sale Price: $23,155
Period: 37 months
Profit: $11,155
Return: 93%
IRR: 24%
Opportunistic: We acquired a large oil painting along with 3 works on paper in 2013. Since his fantastic exhibition in Venice during the 2015 Biennale Xiaodong’s market has been picking up with a new auction record set in Hong Kong of almost $9 million. We decided to sell one of the hand painted photographs in order to establish an auction price for this type of work, raising the value of the remaining 2 we own. Good outcome.
Sale strategy
Wei, Liu (b.1972, China)
Exotic Lands No 3, 2011
Collection: Far East
Acquisition Date: October 24, 2012
Acquisition Price: $42,900
Sale Date: November 29, 2016
Sale Price: $89,896
Period: 50 months
Profit: $46,996
Return: 110%
IRR: 20%
Opportunistic: The market for Liu Wei is extremely strong for paintings, but less so for other mediums. This wood work, while a good early example, was not gaining in value at a similar pace to the painting we own. There had never been a work like this at auction but Sotheby’s HK proposed the auction back cover which seemed like a good entre for such work to the auction market.
Sale strategy
Hazoume, Romuald (b.1962, Benin)
Azonto, 2013
Collection: Africa
Acquisition Date: March 12, 2015
Acquisition Price: $11,928
Sale Date: November 17, 2016
Sale Price: $14,876
Period: 20.5 months
Profit: $2,948
Return: 25%
IRR: 14%
Opportunistic: On the back of PIASA’a success in the 1st African auction, we placed this work on the cover of their 2nd auction. We were also aware that Sotheby’s would auction the David Bowie Collection a few days prior, with 3 early Hazoume masks. That sale was immensely successful and proved supportive for work at PIASA. Back to back, we also agreed to buy 2 other Hazoume works in the primary market, including a replacement mask.
Sale strategy
Aboudia (b.1983, Ivory Coast)
Untitled, 2014
Collection: Africa
Acquisition Date: July 31, 2014
Acquisition Price: $8,671
Sale Date: November 17, 2016
Sale Price: $12,750
Period: 28 months
Profit: $4,080
Return: 47%
IRR: 18%
Opportunistic: Selling down Aboudia inventory. Here placed in PIASA’s 2nd African auction in Paris. The Parisian audience is still discovering Aboudia and had not been supplied enough material to this point. This is now starting to change both through more auctioned works, more gallery interest and via “Also known as Africa” - a new African art fair. We have 6 Aboudia’s left and will sell down a few more.
Sale strategy
Boua, Armand (b.1978, Ivory Coast)
Untitled, 2014
Collection: Africa
Acquisition Date: May 13, 2014
Acquisition Price: $2,908
Sale Date: November 17, 2016
Sale Price: $4,782
Period: 30.5 months
Profit: $1,874
Return: 64%
IRR: 22%
Opportunistic: Placed in PIASA’s 2nd African auction in Paris. The Parisian audience is still discovering Armand Boua and had not been supplied enough material to this point. This is now starting to change both through more auctioned works, more gallery interest and via “Also known as Africa” - a new African art fair. We have 3 other Boua’s and will probably sell one other work soon.
Sale strategy
Amer, Ghada (b.1963, Egypt)
Untitled, 1994
Collection: Middle East
Acquisition Date: August 1, 2013
Acquisition Price: $69,193
Sale Date: November 17, 2016
Sale Price: $69,069
Period: 40 months
Loss: $124
Return: 0%
IRR: 0%
Strategic: As the fund reaches it’s mid life cycle the focus now turns towards selling down the less important works, particularly in those markets where we did not really build a significant collection, such as the Middle East. In tandem, we look to actively enhance the value of the best works we’ve acquired through active loans, collaborations, exhibitions and publications.
Sale strategy
Takano, Aya (b.1976, Japan)
Everyday is Carnival, 2012
Collection: Far East
Acquisition Date: December 21, 2012
Acquisition Price: $65,000
Sale Date: November 26, 2016
Sale Price: $167,596
Period: 48 months
Profit: $102,343
Return: 158%
IRR: 27%
Strategic: Japan not a focus market for the collection, here we sold the last Japanese work in the collection.Opportunistic: Was offered evening sale placement by Christies HK and special marketing package for this fabulous work, which sold extremely well, defying an ongoing weakness in Takano’s market. Certainly the most expensive Takano ever sold per square centimeter.
Sale strategy
Tapaya, Rodel (b.1980, Philippines)
She’s from the Sky, 2013
Collection: South Asia
Acquisition Date: January 8, 2014
Acquisition Price: $14,000
Sale Date: April 7, 2017
Sale Price: $51,466
Period: 38 months
Profit: $37,466
Return: 268%
IRR: 49%
Opportunistic: Work was requested by Salcedo auction house in the Philippines and was promised special marketing attention. Salcedo had achieved the current world record for Tapaya’s Big Fish which it sold for $151’000 in 2016.
Sale strategy
Goldblatt, David (b.1930, South Africa)
Diepsloot, 2013
Collection: Africa
Acquisition Date: July 20, 2011
Acquisition Price: $13,223
Sale Date: June 25, 2017
Sale Price: $17,330
Period: 71 months
Profit: $4,107
Return: 31%
IRR: 5%
Opportunistic: Inaugural African auction at Sotheby’s. Another edition of print exhibited at Louis Vuitton Foundation in Paris at same time and forthcoming exhibition at Pompidou Center all contribute to increased attention. Achieves New World Auction record for the artist of USD 22’592.
Sale strategy
Aboudia(b.1983, Ivory Coast)
Untitled, 2014
Collection: Africa
Acquisition Date: July 31, 2014
Acquisition Price: $8,671
Sale Date: June 25, 2017
Sale Price: $10,333
Period: 35 months
Profit: $1,662
Return: 19%
IRR: 6%
Opportunistic: Inaugural African auction at Sotheby’s. Aboudia market seems toppish and over production of new work keeps prices at bay. Strategically scaling down and keeping only a couple of the best works in collection.
Sale strategy
Glover, Ablade (b.1934, Ghana)
Carnival I, 2014
Collection: Africa
Acquisition Date: January 28, 2016
Acquisition Price: $13,351
Sale Date: June 25, 2017
Sale Price: $16,372
Period: 16 months
Profit: $3,020
Return: 23%
IRR: 16%
Opportunistic: Inaugural African auction at Sotheby’s. Glover’s market seems currently saturated with plenty of work available in both primary and secondary market - keeping prices at bay, particularly for recent works. Older works now a bit harder to come by. Strategically scaling down due to short lifespan of fund. Long term still good value.
Sale strategy
Hugo, Pieter (b.1976, South Africa)
Garuba Yawu with Mora, Ogere-Remo, Nigeria, 2007
Collection: Africa
Acquisition Date: November 16, 2015
Acquisition Price: $18,000
Sale Date: June 20, 2017
Sale Price: $30,225
Period: 19 months
Profit: $12,225
Return: 68%
IRR: 38%
Opportunistic: Inaugural African auction at Sotheby’s. Pieter Hugo’s market is stable and he is definitely in the canon of African contemporary art. We keep 2 other works by Hugo in the collection.
Sale strategy
Anatsui, El (b.1944, Ghana)
Earth Developing More Roots, 2011
Collection: Africa
Acquisition Date: June 27, 2013
Acquisition Price: $660,000
Sale Date: June 25, 2017
Sale Price: $873,031
Period: 48 months
Profit: $213,031
Return: 32%
IRR: 7%
Opportunistic: Inaugural African auction at Sotheby’s London. Obtained cover lot and enhanced hammer, special marketing effort for the work including exhibitions in Paris and NY during key season. Anatsui market seems to have plateaued for bottle-cap works. Better value in older wood works in our opinion.
Sale strategy
Boua, Armand (b.1978, Ivory Coast)
Untitled (Diptych), 2014
Collection: Africa
Acquisition Date: March 19, 2014
Acquisition Price: $6,374
Sale Date: June 25, 2017
Sale Price: $6,297
Period: 38 months
Profit: $-77
Return: -1%
IRR: 0%
Opportunistic: Inaugural African auction at Sotheby’s. Boua market has not really taken off and many who have collected him seem to be keen to let work go, including Saatchi. The newer large format works seem to have more resonance with collecting public. Collection still owns 2 smaller works.
Sale strategy
Aboudia(b.1983, Ivory Coast)
Grigali, 2012
Collection: Africa
Acquisition Date: August 14, 2014
Acquisition Price: $12,699
Sale Date: June 20, 2017
Sale Price: $9,155
Period: 34 months
Profit: $-3,544
Return: -28%
IRR: -11%
Opportunistic: Inaugural African auction at Sotheby’s. Aboudia market seems toppish and over production of new work keeps prices at bay. Strategically scaling down and keeping only a couple of the best works in collection.
Sale strategy
Kentridge, William (b.1955, South Africa)
World on its Hind Legs, 2010
Collection: Africa
Acquisition Date: October 30, 2014
Acquisition Price: $85,553
Sale Date: June 23, 2017
Sale Price: $127,240
Period: 32 months
Profit: $40,687
Return: 47%
IRR: 16%
Opportunistic: Inaugural African auction at Sotheby’s. Kentridge market currently very strong. Taking advantage and keeping 2 other key works in the collection.
Sale strategy
Attia, Kader (b.1970, Algeria/France)
Untitled (Collage en Volume), 2014
Collection: Africa
Acquisition Date: January 28, 2016
Acquisition Price: $19,668
Sale Date: June 20, 2017
Sale Price: $23,928
Period: 16 months
Profit: $4,260
Return: 22%
IRR: 15%
Opportunistic: Inaugural African auction at Sotheby’s. Kader Attia still has a patchy auction market despite very strong institutional recognition and winning prestigious prizes. This series of recent works using motor cycle parts seems to be available in primary market.
Sale strategy
Tayou, Pascale Marthine (b.1966, Cameroon)
Cache-Sexe, 2014
Collection: Africa
Acquisition Date: July 14, 2014
Acquisition Price: $34,179
Sale Date: June 28, 2017
Sale Price: $54,489
Period: 35 months
Profit: $20,310
Return: 59%
IRR: 17%
Opportunistic: Inaugural African auction at Sotheby’s. There seems to be good momentum for Tayou in the market despite still being represented by only 1 gallery and producing incredible amounts of work. He is unquestionably one of the greatest talents in contemporary African art. Pleased to have achieved a new auction record for a Cameroonian artist and placing this work in the Sindika Dokolo collection.
Sale strategy
Shonibare, Yinka (b.1980, Nigeria)
Crash Willy, 2009
Collection: Africa
Acquisition Date: July 1, 2011
Acquisition Price: $160,570
Sale Date: June 20, 2017
Sale Price: $226,684
Period: 71 months
Profit: $66,114
Return: 41%
IRR: 6%
Opportunistic: Inaugural African auction at Sotheby’s. Had been trying to find a good platform to sell this work for a while as storage costs are prohibitive in the long term. Obtained special marketing terms with specific brochure prepared for the work and circulated to institutions globally, well ahead of the auction catalog. Pleased with result that achieved a new auction record for the artist and placement in private institution.
Sale strategy
Shakine, Eran (b.1962, Israel)
Giacometti’s Granddaughter as a Supermodel, 2013
Collection: Middle East
Acquisition Date: September 3, 2014
Acquisition Price: $22,000
Sale Date: June 20, 2017
Sale Price: $32,500
Period: 33 months
Profit: $10,500
Return: 48%
IRR: 15%
Sold to an investor in the fund. All investors have right of first refusal to acquire works from the collection at any time according to a pre-determined premium to book value.
Sale strategy
Pepperstein, Pavel (b.1966, Russia)
The Dying Gangster, 2010
Collection: Eastern Europe
Acquisition Date: November 10, 2011
Acquisition Price: $57,620
Sale Date: October 5, 2017
Sale Price: $26,400
Period: 72 months
Profit: -$31,220
Return: -54%
IRR: -12%
Strategic: As we are in the holding and consolidation period of the fund, we are starting to divest non essential works, particularly in the softer areas of our collection, where we also have very little hope for a better market to sell into over the remaining 4 year fund life. We are willing to take losses in such circumstances, particularly in the most underperforming markets such as Russia.
Sale strategy
Pepperstein, Pavel (b.1966, Russia)
Untitled (Vesjolye Kartinki), 1991
Collection: Eastern Europe
Acquisition Date: June 11, 2012
Acquisition Price: $10,407
Sale Date: October 5, 2017
Sale Price: $15,840
Period: 65 months
Profit: $5,433
Return: 52%
IRR: 8%
Strategic: As we are in the holding and consolidation period of the fund, we are starting to divest non essential works, particularly in the softer areas of our collection, where we also have very little hope for a better market to sell into over the remaining 4 year fund life. We are willing to take small losses in such circumstances.
Sale strategy
Chuikov, Ivan (b.1935, Russia)
No.19 from the series ‘Postcard Fragments’, 2004
Collection: Eastern Europe
Acquisition Date: November 10, 2011
Acquisition Price: $24,008
Sale Date: October 5, 2017
Sale Price: $19,800
Period: 72 months
Profit: -$4,208
Return: -18%
IRR: -3%
Strategic: As we are in the holding and consolidation period of the fund, we are starting to divest non essential works, particularly in the softer areas of our collection, where we also have very little hope for a better market to sell into over the remaining 4 year fund life. We are willing to take small losses in such circumstances.
Sale strategy
Chuikov, Ivan (b.1935, Russia)
No.20 from the series ‘Postcard Fragments’, 2006
Collection: Eastern Europe
Acquisition Date: November 10, 2011
Acquisition Price: $24,008
Sale Date: October 5, 2017
Sale Price: $19,800
Period: 72 months
Profit: -$4,208
Return: -18%
IRR: -3%
Strategic: As we are in the holding and consolidation period of the fund, we are starting to divest non essential works, particularly in the softer areas of our collection, where we also have very little hope for a better market to sell into over the remaining 4 year fund life. We are willing to take small losses in such circumstances.
Sale strategy
Zarva, Sergey (b.1973, Ukraine)
Two works from the series ‘OGONYOK’, (i) 2003 (ii) 2006
Collection: Eastern Europe
Acquisition Date: November 10, 2011
Acquisition Price: $3,841
Sale Date: October 5, 2017
Sale Price: $3,564
Period: 72 months
Profit: -$277
Return: -7%
IRR: 1%
Strategic: As we are in the holding and consolidation period of the fund, we are starting to divest non essential works, particularly in the softer areas of our collection, where we also have very little hope for a better market to sell into over the remaining 4 year fund life. We are willing to take small losses in such circumstances.
Summary Statistics Since Inception
Net Asset Value: $ 20,042,235
Total sales since inception: $7,102,046
Cost of works sold: $4,760,825
Cumulative trading profit: $2,311,221
Money-weighted return on realizations: 48%
Internal Rate of Return on realizations (IRR): 18.78%
Book Value of realized works at time of sale: $6,346,002
Money-weighted premium to book value: +11.9%
Sale strategy
Our collection is being built for the long term, but we also try to be invested as much as possible given the rising markets in which we operate.
Our acquisitions cover a range - from fully established artists with an international market and prices of up to $1 million at acquisition, to emerging talents with no secondary market.
We generally sell works that are not considered core holdings. We try to take advantage of market driven opportunities and occasionally seek to upgrade to better works by the same artist. When we acquire a large body of works by a specific artist at an early stage, and the career evolves, we may sell works into the rising market, always trying to keep the best pieces.
Not all acquisitions turn out to be successful within an acceptable time frame (3-5 years). As we now approach that time frame, we are starting to divest of works where there does not seem to be satisfactory artist/market momentum.
