Jeffrey Sherman and Sam Lau welcome Allen Sukholitsky, chief investment officer at art investment platform Masterworks, to DoubleLine’s The Sherman Show to discuss art as an asset class. Mr. Sukholitsky kicks off the discussion recounting how his background in researching asset classes led him to move from what he calls “traditional investment management” into the art space (1:30). They then get into the democratization of the art investment space (4:18), how Masterworks’ proprietary database guides its investment process (6:24), the price range the firm focuses on and why it prefers post-World War II pieces to Old Masters (10:53) as well as Damien Hirst’s Sharpe ratio – “literally close to zero,” says Mr. Sukholitsky (13:50).
Other topics covered by the group include a look at selling and momentum strategies in the art space (15:32), art’s correlation profile and performance as a portfolio diversifier (19:27) and portfolio management (26:33). On investing in NFTs, Mr. Sukholitsky says that Masterworks has not figured out how to value digital art, noting, “I’m not sure anybody has sorted that question out.” This episode was recorded Aug. 30, 2022.
The views and opinions expressed herein are as of the date recorded and should not be construed as an offer to buy or sell any securities. Such views/opinions may differ from those of DoubleLine Capital or other of its affiliates and are subject to change without notice. DoubleLine has no obligation to provide any updates or changes. The following audio presentations represent DoubleLine’s intellectual property. No portion of these presentations may be published, reproduced, transmitted or rebroadcast in any media in any form without the express written permission of DoubleLine. DoubleLine has no obligation to provide any updates or changes. To receive permission from DoubleLine please contact [email protected].
Neither DoubleLine nor any of its affiliates makes any representation or warranty as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed.
DoubleLine is not providing any financial, economic, legal, accounting or tax advice in these podcasts. The receipt of these podcasts by any listener is not to be taken as constituting the giving of investment advice by any DoubleLine entity or individual to that listener, nor to constitute such person a client of any DoubleLine entity. The portfolio risk management process includes an effort to monitor and manage risk, but does not imply low risk.