Blue Chip Artists

89% COMMITTED

MODERATE RISK TOLERANCE


This fund will primarily invest in Post-War and Contemporary art. The Post-War and Contemporary sector includes work from artists born after 1910. The artwork defines a time period, rather than a set of ideas and styles, and is most often used by auction houses to identify art created between 1945 and 1970. In 2015, Post-War and Contemporary art was the largest sector of the fine art auction market and accounted for 46% of the market by value and 41% of transactions. 

Other sectors this fund will invest in are:
a. Emerging, defined as artists who have created work over the past 10 years.
b. Modern, defined as artists born between 1875 and 1910 

 


CONTEMPORARY MARKET


Like Modern art, there is no singular style that defines Contemporary art as a whole. Instead, Contemporary art is unified simply through the period in which it was created, from the 1970s to the present. This is not to say that there are no distinct themes or movements that exemplify the Contemporary movement. There are many chapters within the Contemporary period, many of which have roots in the Post-Modern and Post-War movements.

 

Take for example Pop art; while Pop art’s heyday was in the 1960s, artists like Keith Haring (1958-1990) and Takashi Murakami (b. 1962) have carried the torch to the present, and today, other artists continue their legacy with Neo-Pop art, using elements of popular culture in their artwork while incorporating their artwork into popular culture.

 

In the 1980s and 1990s, Neo-Conceptual art emerged, also referred to as Appropriation art and Neo-Geo art, with clear roots in Conceptual art, a major movement in Post-War American art. These artists took ready-made objects from society and used them in their art. A classic example is Jeff Koons’ (b. 1955) Balloon Dogs, as well as the works of Richard Prince (b. 1949), Barbara Kruger (b. 1945), and Jenny Holzer (b. 1950).

 

Post-Minimalism arose in the late 1960’s to describe work that was more embellished to signal a shift away from the more rigid forms of Modern Minimalist art. Coined by art historian and critic Robert Pincus-Witten in the late ‘60s, Post-Minimalism was a salient part of the Contemporary art scene, as opposed to the Modern era. While minimalist art was mainly an American movement, international variations rose in Mexico and Japan in the late 1960s and early 1970s.

 

In addition to the various other movements within Contemporary art such as Installation, Performance, and Neo-Expressionism, the era is divided up by location and culture. There is American Contemporary, European Contemporary, Chinese Contemporary, Latin American Contemporary, Russian Contemporary, Middle Eastern Contemporary, and many more.

It will be interesting to see in the decades to come which styles and artists were truly the most innovative, imparting a lasting impression on the future of art.

 

*Sources: Tate Museum Online Glossary; Museum of Contemporary Art (MOCA) Los Angeles Online Art Terms; Solomon R. Guggenheim Collection Online, Movements


SUMMARY


Post-War and Contemporary art has been one of the strongest sectors of the art market since 2009, driving much of its growth and accounting for the majority of high prices at auction. It has also been one of the more volatile sectors, with expansions and contractions exceeding those of the market as a whole and many of the other sectors within it.

Sales had boomed in 2007 and rose by over 200% in value between 2005 to 2007, alongside a steady increase in the number of works sold at auction. This sector also became a target for new high net worth collectors and the focus of investment driven purchases due to relatively greater liquidity and more access than other sectors.

The US remained the key market worldwide for sales of Post-War and Contemporary art, with a global share that totaled 47%. Sales of Post-War and Contemporary art in the US increased by approximately 270% in the period between 2005 and 2015 and over 340% since 2009. The sector has become distinguished as the key center for record, multi-million dollar prices at auction and, as in most other sectors, the bulk of transactions are in reality at much lower levels. In 2015, 90% works that were sold at auction were priced below $50,000, with 54% less than $5,000. These transactions, however, only made up 12% of the sector’s value, which remains dominated by the top end of the market. Works priced at over $1 million accounted for 58% of value but less than 1% of the number of lots sold during the year. In the market above $1 million, the US has a much larger share at 61%. It accounts for 77% of the segment over $10 million, with 54 our of 74 works sold in New York.

 


ADDITIONAL INFORMATION


Arthena builds funds from collections of individual works of art. To build a fund, Arthena targets aquisition of works that we predict to grow 20% year over year for the five year lifetime of the fund with an acceptable amount of risk. To make intelligent predictions, we use cutting-edge analytics on millions of historical auction results from major auction houses from around the world. At every step of the process we seek to provide our investors with high performing assets in the art world with risks uncorrelated from other markets.

Arthena acquires works in the emerging, post-war contemporary, and modern art market sectors, which together account for over 70% of the U.S. market and have shown the highest rate of growth over the past 10 years. In general, Arthena rates the emerging artist market as aggressive investment, the post-war contemporary market as moderate investment, and the modern market as store of wealth. Arthena’s funds diversify across these three market segments, with percentage of investment in each market sector weighted on investor risk tolerance. 


REPRESENTATIVE WORKS


Lobster

Lobster

Jeff Koons

Triptych

Triptych

Lisa Yuskavage

A Drawing in Five Parts

A Drawing in Five Parts

Richard Serra

Love Is What You Want

Love Is What You Want

Tracey Emin

Untitled (The Harder You Look)

Untitled (The Harder You Look)

Christopher Wool


TERMS OF FUND


Offering size*……….……….…………….….......$1,000,000

Management fee........……….……….……..……. 0.00%

Minimum investment ……….……….……………... $10,000

Investment Structure……….………..………..........Regulation D

Liquidity……….………..……….........................5 year investment horizon

Acquisition size.............................................targets work below $50,000.00

Targeted IRR................................................12% -17.5%

Three-year investment period with two-year divestment and distribution period offers

medium-term liquidity