Institutional Investor's Alpha Magazine - November 2007 - (Page 47)

supply, that has cultural and social value to it and is a very convincing way to display wealth,” says Brown. Carnegie concentrated on the contemporary art of his time, collecting Winslow Homer, Camille Pissarro and James McNeill Whistler, and established Pittsburgh’s Carnegie Museum of Art in 1895. Frick began with French landscapes and then switched to Old Masters, including Vermeer, Rembrandt and El Greco. Frick was trading all the time to upgrade his collection, says Brown, who calls him a “hard bargainer.” Money didn’t stand in the way when a robber baron wanted a piece of art. “For the pictures they wanted, they paid up,” says Brown. Frick spent $475,000 on Velasquez’ King Philip IV of Spain and $1.25 million on 11 Fragonard panels that he bought from J. Pierpont Morgan’s collection. Those works are part of the Frick Collection in New York, which is housed in a building Frick spent $5 million constructing. When the collection opened to the public in 1935, it was valued at some $50 million. It now has 1,300 works and is considered priceless. “People talk about a lot of the younger ﬁnancial money entering the contemporary market, but if you look at this historically, who were the people in the U.S. who were amassing serious collections of art?” says Levin. “The titans of industry. Nothing has changed.” As for the next generation of Fricks and Carnegies, some hedge fund managers who collect will strengthen their standing in the art world by taking the traditional institutional route. Several have already begun: Ganek is on the board of the Guggenheim Museum in New York; Dias is on the Whitney Museum’s board; Grifﬁn is a trustee of the Art Institute of Chicago, where several of his works were recently on display. Sender wants to establish his own institution; he’s currently looking for the right real estate to house his collection. Cohen is on the painting and sculpture committee at MoMa. His three-year loan of the Hirst shark to the Met not only validates his credibility as a collector but might lead to his joining the museum’s board, one of the most exclusive in New York. The current Prince retrospective at the Guggenheim contains several works lent by hedge fund managers, including Sender, Cohen and Ganek. Whatever road they take, these managers — most of whom are still in their 30s and 40s — could have long careers in the art world ahead of them. They will also attract other hedge fund managers to the art market — and be the model to emulate. “Reference is made to hedge fund managers throwing the art market awry,” says Agopian. “I think they have just brought more attention to the world of collecting.” Unique liquidity. Start-up services. Commission management. Advanced algorithms and analytics. not a hedgehold name You may not think ITG when you think hedge funds. But the fact is, we've been serving many of the top hedge fund managers for over 20 years. We deliver innovative technology, aggregated liquidity, and a broad range of customizable solutions. Add ITG to your broker mix. You'll appreciate our confidential, broker-neutral approach. For more information, please visit w.itg.com/hedge or contact us at hedge@itg.com or 800.858.4907. END-TO-END TRADING SOLUTIONS™ PRE-TRADE TRADE P O S T- T R A D E Portfolio Management, Optimization, & Compliance Pre-Trade Analytics Execution, Management, & Connectivity Algorithmic Trading POSIT ® Crossing Measurement & Analytics Post-Trade Processing www.itg.com ©2007 Investment Technology Group, Inc., member NASD, SIPC. 51507-56797 http://www.itg.com/hedge http://www.itg.com http://www.itg.com

Table of Contents Feed for the Digital Edition of Institutional Investor's Alpha Magazine - November 2007

Institutional Investor's Alpha Magazine - November 2007 Contents Letter from the Editor Longs & Shorts Pension Corner: Patriot State The Good Guys: College Connection Interview: Currency of Change Cover Story: Comeback Kid Strategies: Masters of Art Research Center: Alpha Awards: Top Technology Providers Top Analysts Alpha Bytes: Critical Choice Unhedged: Commentary: Banking on a Bubble

Institutional Investor's Alpha Magazine - November 2007

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