Top Hedge Fund Manager Predicts A Collapse In The Art Market; “These $90 million paintings won’t go from 90 to 70, it will go from 90 to eight.”

May 17, 2013 Leave a comment

Top Hedge Fund Manager Predicts A Collapse In The Art Market

Sam Ro | May 16, 2013, 6:44 AM | 1,490 | 4

Michael Novogratz, the head of Fortress Investment Group, appeared on CNBC yesterday. Among other things, he talked about what he considered to be an ongoing bubble in art. “Art is 100 percent a bubble—I mean it has all the markings for a bubble,” said Novogratz. “Prices have gone parabolic. You go to any of the art shows and you know even the cheap stuff that was $10,000 two years ago is now $80,000.” Novogratz and the CNBC crew were responding to a story on the recent Sotheby’s auction where Barnett Newman’s “Onement VI” sold for a stagger $43.8 million. “These $90 million paintings, you know, they might be worth eight one day,” added Novogratz. “They won’t go from 90 to 70, it will go from 90 to eight.” Investors skeptical of traditional financial assets have flocked to alternative assets like art and gems in their efforts to store their wealth.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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