Today hedge fund managers play a vital role, not only in the financial market, but also in the growing interest for art and beauty. This may seem a bit odd, but for artists in search of money and value, hedge fund managers are the closest thing to it.
Now many hedge fund managers are paying a great sum of money to draw the interest of wealthy patrons and attract money for their favorite artists.
For instance, hedge funder Dan Loeb, billionaire and competitive collector, bought 10 percent of Sotheby’s, one of the world’s largest broker of fine and decorative art.
Naturally, besides the high price of art, hedge fund managers like Loeb, know that art commands value as time goes by. Even art collectors knew that rare and old pieces of art are a good source of wealth and fortune. This explains the sudden surge of interest in art by many hedge fund managers now.
Loeb’s interest in Sotheby’s may help explain why rich men find art so compelling and hedge fund managers are suddenly drawn to the art market looking for promising artists with potential value.
According to an article by Michael Wolff in The Guardian, art work, like the stock exchange or currency, has an “intrinsic and quantifiable value”.
Wolff added: “You turn it into cash only for greater convenience or as a hedge (or, if things go so badly for you that you actually need money). But you could just as well, if you are rich, safely and advantageously move your wealth only among works of art.”
Today, the art market, itself, is a place of opportunities in as much as the stock exchange. Hence for Loeb and other hedge fund managers, Sotheby’s is marketplace where there is an opportunity to earn big cash, albeit a marketplace that is more controllable than the stock market and with far less risks.
Hedge fund, art and charity
However, hedge fund managers’ interest in art is limited not only to pursuing and gaining profits. There are those who admire beauty and support the artists in a different way.
Take the case of Jeffrey Arsenault, founder and principal partner of the New York-based Old Greenwich Capital Partners, a firm which has an estimated $128 million in assets Under Management (AUM) at present.
Through the years, Arsenault has been actively campaigning for business to support cause-oriented and charitable projects such the Annual Hedge Funds Care New York – Open your Heart to the Children Benefit.
An art patron, Arsenault also supports “ARTrageous”, a unique fund-raising event benefiting foster children through art, an annual event organized to help raise funds for the Edwin Gould Services for Children and Families (EGSCF), one of the top foster care agencies in the New York City.
He is now set to join art patrons from different parts of the United States to view two new major art exhibits slated on February 14 at the Stepping Stones Museum for Children in Norwalk.
The two traveling exhibits: the Express Yourself exhibit and the Healthville Traveling exhibit are held to benefit Stepping Stones Museum’s educational programs for children.
Arsenault’s vision is shared by many of his colleagues in the hedge fund business, who contributes to various charitable campaigns and institutions.