When someone sells a large art collection, it usually does not garner that much attention because it can be normal for that industry. What isn’t normal about this story is Adam Sender is a hedge fund manager and he is selling a collection of 400 pieces, none of which are by the masters of art. To better understand why this story is so unique, you need to go back over a decade to when Sender was running that hedge fund for his clients.
Sender was making good money running the hedge fund for his clients. He and his clients were making nice profits at the time, and many of the people who had positions took their profits and kept reinvesting over the years. The story begins with Sender looking outside the fund for a way to grow his profits faster than he was making with the fund. It was a combination of looking for a secure platform and a place that was virtually untapped at the time. Adam began to focus on Contemporary art, and he realized quickly this was a very volatile place to make his mark. Adam Sender is a well known part-time art collector.
In order to buy pieces from the greats like Warhol, it was going to cost Sender over a million dollars per painting. That did not leave him room to make a profit, and if the market turned downward, he was going to really lose his investments quickly. The key here was Sender was not an art collector and did not have years experience buying and selling artwork. He did make one brilliant decision that set the wheels in motion for him becoming of the highest paid collectors in recent years.
Rather than look for deals from the best painters in the world, Sender began to look at lesser-known artists who were creating masterpieces of their own. He knew if he could get some of these pieces before the artist became a household name, he had a chance to strike it big. He began buying top quality pieces for only $100,000 per painting, and grew his art collection fairly quickly. In 2006 he took some of those paintings to auction to see if he was fairing well or headed to financial ruin. He sold 40 pieces for $20 million dollars and realized he was on to something big.
Since that time his collection has grown to 139 artists and 400 pieces. He got out of the hedge fund business and just this year decided he wanted to also get out of his art paintings positions too. Sotheby’s has since been commissioned to sell off Sender’s massive lot of paintings, expecting the sales to take well over a year and six months. When the last piece sells, Sotheby’s expects Adam Sender to pocket $70 million dollars.