tag:blogger.com,1999:blog-7024210672199702325.post7632541144116338589..comments2024-03-28T15:07:22.673+05:30Comments on Shoot First, Mumble Later: The Art Market's Blue PeriodGirish Shahanehttp://www.blogger.com/profile/16877402074547726173noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7024210672199702325.post-11264959744221220362009-01-04T22:29:00.000+05:302009-01-04T22:29:00.000+05:30Very interesting possibilities. As far as extendin...Very interesting possibilities. As far as extending the duration of the fund is concerned, I doubt it will work because the market's not going to recover for a while. Still, a few fund managers will probably try to push that option. <BR/>Selling in-house? If HNIs still have the appetite to buy, and the art is high quality, some of the works could be offloaded that way, I guess. <BR/>But there are just so many funds out there, and investors have suffered so much already in equity markets, that I suspect many would prefer to take what money they can get, cutting their losses. I wonder what happens if such proposals are made, but there is no unanimity among investors? Do you know of clauses in fund agreements which govern such issues?Girish Shahanehttps://www.blogger.com/profile/16877402074547726173noreply@blogger.comtag:blogger.com,1999:blog-7024210672199702325.post-13795144682855688952009-01-04T19:14:00.000+05:302009-01-04T19:14:00.000+05:30The selling strategies of art funds are governed b...The selling strategies of art funds are governed by the purchase price of works in the portfolio. If they were buying aggressively in the boom then simply offloading at any price would defeat the purpose of the fund: to make profit. I may be wrong but it seems much more likely they will change the terms of the fund in order to lengthen its life or, alternatively, hold a private auction among their investors and liquidate their holdings in-house. The second alternative is attractive since although the fund managers might not be able to recoup their investors money, they may at least be able to offer art at below market prices. This, of course, assumes that the fund was buying works that had quality, something which is entirely dependent on who was in charge of the buying strategy.torntashhttps://www.blogger.com/profile/13559767061213419930noreply@blogger.com