How Did Adam Sender Acquire 400 Pieces of Contemporary Art?

Posted on by RPF2015

The reason the question about how Adam Sender collected 400 pieces of Contemporary art might seem strange is because he is known as being a successful hedge fund manager. He expertise is in money and growth, not in collecting art work. But this story has a very unique twist that wound up netting Sender over $70 million dollars, and it had nothing to do with his experience in the mutual fund arena. One only need look back a little over a decade to see how one key decision made a mountain of difference.

Going back over a decade, Sender was the manager of a very lucrative hedge fund. He was enjoying the rise in stocks just like his clients. Everyone seemed to be pulling money off the table when the fund was at the peak. One thing that Sender did though, he began considering the possibility of putting his profits to work for him somewhere else, somewhere that he thought the growth would return him more than the fund could ever do. So Sender considered the possibility of buying artwork and holding then selling for a profit. It seemed like a simple idea that only needed cash backing and a little research.

Sender quickly began to realize that he was not going to hit that big score if he went out looking for a Warhol masterpiece. It would set him back a few million dollars, and there was no guarantee that piece would be worth more than he invested regardless how long he help on to it. This is where the story takes that unique twist that would eventually set Adam Sender on to a course he would reap the benefits from long-term. Sender did not get discouraged and walk away from art, instead he rolled up his sleeves and tried another route. Adam Sender alsowas discussed by BusinessInsider.

Sender began researching lesser-known artists who had created some compelling pieces. He was shocked to find that these artists best work was barely selling for $100,000 – $200,000. This was the opening he had been looking for. Sender began to look high and low for top pieces from these artists that were just under the radar, and before long he accumulated a sizable collection. Sender then stopped collecting and wanted confirmation that his hunch was a money maker. He auctioned off 40 pieces of his collection, and was surprised to discover he sold the entire lot for $20 million dollars.

Sender continued to use profits to buy art, until he closed the fund and decided the time was right to liquidate that massive collection of art. Sotheby’s is auctioning off 400 pieces from 139 artists, expecting it to take 18 months to complete. All told, Sender will make $70 million dollars when his check comes in.