New Niche Hedge Funds Invest In High-End Watches

Looking for a new investment avenue? Would investing in luxury watches be up your alley? In recent years, even as traditionally stable areas like real estate experienced huge losses, the collectible watch market remained crisis-proof. That may have encouraged investment professionals to look upon luxury timepieces as a promising area for investment. The dramatic rise in prices of collectible timepieces added to this promise, encouraging the rise of hedge funds dedicated to high-end and collectible watches.

Miriam Mascherin, co-founder of investment consultants Elite Advisors, teamed up with Michel Tamisier last January to form Precious Time, a fund for collectible timepieces. Mascherin admitted that this is not a virtual investment; shareholders own the physical stock. Moreover, Precious Time is not alone in the watches-as-investment business. Giving them company is Horological Asset Partners, founded by Trent Crowley, former chief executive of watch auction website Astorlive.

Precious Time has raised enough (€6 million) to pick up four of the costliest watches in the world. It hopes to increase this to between €100 million and €250 million. Meanwhile, Horological Asset Partners is hoping to raise $50 million in investments dedicated to rare timepieces. Both hedge funds will be targeting vintage watches, placing highest priority on signed Patek Philippes. Both plan to purchase units directly from dealers and private collectors. They might make auction buys too, taking into account high commissions and taxes.

Precious Time plans to include 70 percent vintage and 30 percent modern watches in their fund. Patek Philippe will form 50 percent of the investment. 30 percent will go to other high-end watch brands including Breguet, Cartier and Rolex. This one, is an elite investment option of course – one that should interest only serious collectors.

Via: New York Times

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