Now Entering Russ's World
Looking back only a little over a decade ago, it was a pretty unconventional move to take profits from a highly successful hedge fund and invest in a risky art industry. This move however has positioned Adam Sender to pocket over $70 million dollars when his complete collection of Contemporary pieces sell at Sotheby’s over the next 18 months. The story of this incredible timing can only be considered that of which dreams are truly made of.
Adam Sender was running his successful hedge find for years, and his clients were definitely reaping the benefits of his hard work. While they were grabbing their profits and putting it back into the fund, Sender thought he would venture out and look for a unique opportunity to grow his money even further. Investing in the art world is risky at any level, but Sender looked for an opportunity he thought might turn a huge profit in a short time.
Sender realized quickly that he was not going to get rich by grabbing pieces from the masters in that industry. Buying a masterpiece by Picasso or Warhol would set him back at least a million dollars a piece, so he took a very unconventional route to his art dream. Sender began looking for high quality pieces that were created by lesser known artists and selling for a fraction of what the masters were fetching at the time. He was able to find some excellent pieces that cost between $100,00 and $200,000 and were highly sought after.
In 2006, Sender wanted to make certain that his hunch to buy these pieces was a wise investment, so he auctioned off 40 pieces of his growing collection. These 40 pieces brought Sender $20 million dollars, and he quickly realized that he was right all along about going after these lesser known pieces. In the next ten years, Sender continued to pile up his Contemporary art collection, now amassing 400 pieces by 139 different artists. He closed his hedge fund and decided now was the time to get out of the art business.
Adam Sender contracted Sotheby’s to auction off all of his collection, a task they claim will take well over a year to fully complete. They expect by the end of the 18 months that Sender will be walking away from those auctions with $70 million dollars. Take out the acquisition fees from his first sale in 2006, and he could be making pure profit this time around. If anything can be learned from this story, if you have a hunch about investing and making huge profits, do your homework and test the market to be sure that your goals are aligned with what is happening within that industry today.