Trends Watch: October 6, 2016
EisnerAmper’s Trends Watch is a weekly entry to our Alternative Investments Intelligence blog, featuring the views and insights of executives from alternative investment firms. If you’re interested in being featured, please contact Elana Margulies Snyderman.
This week, Elana talks to Madelaine D’Angelo, Founder, Arthena
What is your outlook for the alternative investment industry going forward?
Alternative investments provide interesting ways for high-net-worth individuals to diversify their portfolios. Arthena’s investors are excited about diversifying not only into fine art assets, but other alternative options as well. From venture capital to classic car funds, data has shown that high-net-worth individuals are looking beyond traditional investment options such as hedge funds, stocks, bonds and REITS. I strongly believe that the alternative investment market will continue to grow and gain strength.
What are the biggest challenges and rewards you face as an investor?
There are so many exciting opportunities in the market that it’s hard to pick a specific set of investments and have adequate time to perform the proper due diligence. This is why high-net-worth individuals typically invest with their private wealth managers, or in sectors that they already have experience in. At the end of the day, my investment thesis really boils down to three key points: Low fees, double digit returns, and diversification.
Why do you believe investing in art is an attractive investment opportunity?
The art market is a viable asset class that millions of high-net-worth individuals have participated in for centuries. It has the highest barrier to entry and the strongest historical returns. The art market has also historically shown to be uncorrelated to the S&P 500, REITS and US Bonds.
What keeps you up at night?
The thought that so many investors are missing out on the opportunity to diversify into art assets. Not only is it an uncorrelated investment, but it serves as a great store of wealth.