This Week in Alternative Investments - June 16th, 2023

Author

Adam Katz
June 16, 2023

Gustav Klimt’s “Lady with a Fan” carries an estimated price tag of $80 million

Headlines

Bite sized market updates

Gustav Klimt’s last painting could sell for over $80 million. The Austrian’s “Dame mit Fächer (Lady with a Fan)” might set a European auction record.

California’s public pension fund is looking to invest in venture. The $457 billion fund wants to add to its venture allocation, which currently only makes up 0.2% of its portfolio.

Crypto.com is shutting down its U.S. institutional services. It cited the “current market landscape” and “limited demand” but its retail trading app will remain open for now.

The long-term outlook for mortgage rates improved. With the Fed deciding not to raise interest rates, look for mortgage rates to slowly decline going forward.

Portfolio Spotlight

A weekly look behind the scenes of an investment in the Vincent portfolio.

Kusama: Vincent invested in two Yayoi Kusama paintings on behalf of its clients, one of a red pumpkin titled “Red God” and one of a white infinity-net titled “Infinity-Nets (BCO)”. These motifs and colors are two of Kusama’s most well-known.

Market Updates

Famed Austrian painter Gustav Klimt’s final work could set a European auction record. The 1918 painting “Dame mit Fächer (Lady with a Fan)” will be auctioned later this month at Sotheby’s in London and carries a pre-sale estimate of over $80 million. Klimt’s current overall auction record is $104.5 million, but several private sales are believed to have exceeded that amount.

CalPERS, the $457 billion California pension fund, is increasing its investment in venture. Currently, their venture allocation only makes up an estimated $758 million of the overall portfolio. The fund is trying to capitalize on the recent downturn in the overall VC market and fill some of the gaps as VC firms have decreased funding.

In the wake of increased regulation, Crypto.com shut down its U.S. institutional services. This came immediately after the SEC sued Binance and Coinbase, and goes into effect on June 21. However, its retail trading app remains open as of now.

Mortgage rates are expected to fall after the Fed held off on a rate hike this week. This according to Realtor.com’s chief economist, who expects a gradual decline into the low 6% range by the end of the year, and into the 5% range next year. Currently, 30-year mortgage rates are averaging close to 7%, which is a main contributor to the slow housing market.