77% Of The Ultra Rich Are Bullish On This Exclusive Market — This Company Can Get You In For A Fraction Of The Cost

Just this month, a groundbreaking report from UBS revealed that a record 77% of the world’s wealthiest investors have a positive outlook on this market in 2023. 

It's not stocks, real estate, or gold. It's a $1.7 trillion asset class – ART.

That’s because contemporary art prices have had strong performance as an asset over the last few decades, outpacing the S&P 500 by 131% over the past 26 years.

Plus, according to UBS, it’s a “great hedge against inflation”, with Blackrock CEO, Larry Fink, even calling it “one of the best stores of wealth internationally,” which is why billionaires like Larry Fink, Jeff Bezos, and Steven Spielberg are all investing millions into this asset.

The only problem is, regular investors have always been locked out of this asset class because it usually takes millions of dollars to purchase a single iconic piece.

But that’s all changed thanks to Masterworks, an art investing platform with nearly $1 billion in assets under management. 

Higher growth with lower volatility?

This award-winning platform allows you to invest in shares of paintings from artists like Banksy, Picasso and Basquiat, without having to invest millions to buy a single painting —ideal for investors looking to unlock the potential benefits of art investing without the day-to-day volatility of the stock market.

Many of the contemporary artists that Masterworks tracks offer the potential for excellent risk adjusted appreciation. 

Just take a look at Banksy:

  • From 2003 to 2022, Banksy’s record price at auction* for his works saw an average growth of 67.1% a year. 
  • Over the last 15 years Banksy’s Sharpe ratio* was 1.4, more than double the S&P’s .65 over the same period.  

This  means investing in Banksy’s market could give you the chance to receive higher risk adjusted appreciation than investing in an S&P 500 index fund.

With these types of stats, their offerings sell out fast. You can use this exclusive link to skip the waitlist.
 

Investors are earning double and even triple digit annualized returns

Masterworks team of top researchers handle the entire process from finding the artwork, negotiating the purchase and final sale, as well as handling the shipping and storage of the pieces.  

In short, they do the hard work while you get to reap the potential rewards, which can be impressive. 

In fact, a group of Masterworks members just raked in a whopping 325% net annualized return on a sculpture by Simone Leigh.

These members were able to collect a 15.4% net return in just 36 days on this sculpture, which is equal to 325% on a net annualized basis. 

While it’s not common for Masterworks to get such a profitable exit that fast, every single one of Masterworks’ 13 exits has returned a profit to investors so far, with 11 out of the 13 delivering double digit net annualized returns.

Masterworks delivered millions to investors in 2022

Masterworks uses its team of experts and industry leading database to try to find ‘alpha’ in the art market — the artworks with, what they perceive to be, the most momentum — and less than 3% of artwork pass their rigorous screening process.

This is a large reason why they were able to continue to deliver impressive results in 2022, one of the worst years for stock and bond investors since the Great Depression.

In the same year that everyday investors lost a whopping $350 billion, Masterworks had a banner year.

Their 9 art sales returned $25.8 million in total net returns to investors, with the last few paintings delivering net annualized returns of 10.4%, 13.9% and even 35%.

Ready to invest like a Billionaire?

Masterworks is unlocking an asset class that was once only available to the ultra rich, and they’re inviting readers to open a free, no-obligation account today. 

It only takes seconds to apply for Masterworks and Benzinga readers can skip the waitlist with this invitation.

From there, you can see what artworks are available, and find ones to fit your financial goals.

 

See important disclosures: masterworks.com/cd 

**** The risk-adjusted appreciation, otherwise known as “Sharpe Ratio”, can be used to evaluate the total performance of an asset, portfolio, or in this case the artist’s market, and indicates how well the artist’s market has performed historically in comparison to the rate of return on a risk-free investment, such as U.S. government treasury bonds or bills.

The market for Banksy has a risk-adjusted appreciation of 1.40. Risk-adjusted appreciation reflects (x) the average annualized artist market appreciation (depreciation) of all artworks by an artist that have sold at least twice at public auction (referred to as “repeat sales”), minus the risk-free rate of return. The risk-free rate of return is measured by the average annual risk-free rate at year end over the applicable time period, divided by (y) the volatility of the returns in an artist’s market, as measured by the standard deviation of those returns. The applicable time period begins on the later of (a) the earliest purchase price date for the artist’s first repeat sale and (b) December 31, 1989, the year end of the earliest year when other financial indices were available, and ends on the last sale date that the artist had a repeat sale. Sharpe ratio chart for Banksy against S&P, corporate bonds, gold and real estate. ****

 

This post was authored by an external contributor and does not represent Benzinga's opinions and has not been edited for content. This content contains sponsored advertising content and is for informational purposes only and not intended to be investing advice.
 

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