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The Midas Formula ÂŁ5 Issue .21

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I N D U S T RY • L U X U RY • O P I N I O N


E di tor's


Mark Hedley dEputy Editor

L Et t E r

Jon Hawkins Sub Editor

Peter Cardwell Staff writEr

Matt Huckle Editorial aSSiStant

Pete Simpson

Design art dirEctor

Matthew Hasteley SEnior dESignEr

Lucy Phillips Junior dESignEr

Ali Davidson dESignEr

Katie Peat

Contributors Maneet Ahuja Robert Bailey Alix Buscovic Michael Goodkin Robert James Michael Peppiatt Jancis Robinson Oliver s’Jacob Ian Stewart Robin Swithinbank

Advertising commErcial dirEctor

Lauren Neale advErtiSing managEr

Michael Berrett print advErtiSing

Will Preston, Will Taylor drinKS & vEnuES

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Printing Blackmore

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Square Up Media 4 Tun Yard, Peardon Street London SW8 3HT +44 (0) 20 7819 9999


t’s pretty hard to believe, but sometimes corporate culture can be a good thing. Take Hewlett-Packard, for example. Back in the 1970s, it renounced the hire-and-fire mentality choosing instead to garner employee loyalty by offering unparalleled job security. In the stock market crash of 1974, HP avoided layoffs by introducing a fourday working week – a unique measure for corporate America. Even HP’s Management By Wandering Around (MBWA) gained lasting traction for its doeswhat-it-says-on-the-tin simplicity. But some businesses definitely take corporate culture too far. For example, a friend of mine worked in Asda’s UK HQ where he had to learn – and periodically sing – the ‘Asda’ song. Apparently it starts with “Give me an A” and ends with the ‘double pocket tap’. I kid you not. And now such madness seems to be infiltrating the hedge fund industry. As you’ll find out in Maneet Ahuja’s column on p15, Bridgewater president Ray Dalio has a few unorthodox business philosophies – especially on transcendental meditation. Enough, in fact, to fill 123 pages of his handbook Principles. This spring all his employees had to take an exam on the book. In theory, it was meant to “feel like a day-long conversation on Principles”. In reality, it was a computerised-exam with adjudicators, results and even an audit for cheating. Oh well, who said working for one of the world’s most successful hedge funds was meant to be fun?

hEad of digital

Mike Gluckman hEad of pr & marKEting

Loren Penney marKEting & EvEntS

Danielle Kent financial dirEctor

Steve Cole accountS

Laura Otabor, Claude Alabi

Michael Goodkin A successful gambler, failed investor, and mediocre student, Goodkin was advised by his high school guidance counsellor to become a plumber. Eight years later, he became the first man to bring computerised trading to Wall Street.

Professor ian stewart Prof Ian Stewart is best known for making mathematics both accessible and popular. He’s been awarded the Royal Society’s Michael Faraday Medal and the Zeeman Medal of the London Mathematical Society for popularising the subject.

Michael PePPiatt Peppiatt was an art critic at the Observer before becoming literary editor for Le Monde and arts correspondent for the New York Times and the FT. His biography of Francis Bacon was a New York Times ‘Book of the Year’

Mark Hedley - Editor Maneet ahuja


Martin Deeson cEo

Tim Slee chairman

Tom Kelly OBE TINY COMPETITION: Find the calculator [below] hiding somewhere in the magazine. Email us with its location to for your chance to win a mystery prize. Terms & conditions apply.

△ Cover image by Lucy Phillips & Matt Hasteley

© Square Up Media Limited 2012. All rights reserved. No part of this magazine may be reproduced without the written permission of the publisher. All information contained in this magazine is, as far as we are aware, correct at the time of going to press. Square Up Media cannot accept responsibility for errors or inaccuracies in such information. If you submit unsolicited material to us, you automatically grant Square Up Media a licence to publish your submission in whole or in part in all editions of the magazine. All material is sent at your own risk and although every care is taken, neither Square Up Media nor its employees, agents or subcontractors shall be held liable resulting for loss or damage. Square Up Media endeavours to respect the intellectual property of the owners of copyrighted material reproduced herein. If you identify yourself as the copyright holder of material we have wrongly attributed, please contact the office.

Maneet Ahuja is CNBC’s hedge fund specialist, and a producer on Squawk Box. She began her career on Wall Street aged 17 in Citigroup’s Corporate & Investment Banking division. She is one of Forbes magazine’s 30 Under 30 this year.



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32 issue 21

21 22



Contents hedge magazine . issue 21

S h o rt S



ray of enlightenment

F e atu r e S



the midas touch


I n du Stry


bio hazards

Why Bridgewater’s ‘hyperrealist’ founder, Ray Dalio, swears by transcendental meditation. By Maneet Ahuja

The Black-Scholes model revolutionised finance, but in the wrong hands it caused untold damage, says Ian Stewart

Oliver s’Jacob and Robert James on the challenges facing the UK biotech industry, and what they’re doing to help save it




picture this

Jacob Hashimoto’s striking work explores the boundaries between painting and sculpture, abstraction and landscape

portrait of the artists

where’s wally?

In a career that began in the 1960s, Michael Peppiatt has interviewed some of the world’s most revered artists. A new book and exhibition celebrate his work

The founder of Italian powerboat maker Wally, Luca Bassani, tells HEDGE how he turned boat design convention on its head, and created an ocean-going icon

All the news from Mayfair and St James’s




Michael Goodwin, the man who brought computerised trading to Wall St, tells his remarkable tale of highs and lows


hedge heartland


Jeweller Boucheron hosts HEDGE readers

computer love

on the hedge of glory

AIMA boss Andrew Baker says the hedge fund industry is, contrary to popular belief, a significant force for good



issue 21




83 65

Contents Issue 21

R ewaR d s




masterpiece fair

Masterpiece gathers some of the world’s most covetable goods under one roof




from small acorns...

Audemars Piguet’s genre-defining Royal Oak celebrates 40 years at the top

just watch me go

Essential wrist-wear for those planning to escape these shores this summer


Where to buy a private jet in Mayfair


A life if luxury at The May Fair hotel

83 66


Martin Deeson does business in Mumbai

art & antiques

Everyone has the brain power to make money from stocks. Not everyone has the stomach

The annual LAPADA Fair is soon upon us



The ever changing face of Knightsbridge


stationary draw

Heaven is a traffic jam, says Mark Hedley. At least, if you’re in a Bentley Mulsanne...




end notes

Davide Quayola on where the art is

Peter Lynch

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Opening pOsitiOn ray DalIo

s h o r t s

The Right Principles? Maneet aHuja says the philosophy of Ray Dalio and his emphasis on meditation may be part of

the right recipe for hedge fund success. But he has mixed reviews from some of his employees…

PhotograPh: Scott Eells/Bloomberg via getty Images

In ‘PrIncIPles’, ray DalIo writes, “You learn so much more from the bad experiences in your life than the good ones. Make sure to take the time to reflect on them. If you don’t, a precious opportunity will have gone to waste. Remember that pain plus reflection equals progress.” This is just one of the many aphorisms, precepts, nuggets of wisdom, and practical management tips that the 62-year-old Dalio – the founder of Bridgewater Associates, the global macro fund that is the world’s largest hedge fund, with $120bn under management – emphasises time and time again. Bridgewater advises and runs portfolios for the most powerful pension funds, central banks, and countries around the world. In fact, a recent study by London-based research firm Preqin shows that Bridgewater is the most popular hedge fund among public pensions. If you did a quick search on Dalio, you’d be flooded with stories of his firm’s success in the markets (including generating its best returns in the most difficult markets of the last decade) and get a fair dose of his philosophy on life and management. For example, Dalio has been practicing transcendental meditation for more than 40 years and calls it “the single biggest influence” on his life.

You’d also find that his most important maxims involve his relentless “pursuit of truth” and hunger for “personal evolution”. His unwavering focus on these goals has no doubt affected his performance figures and client satisfaction for the better, but has earned him mixed reviews from employees, some of whom judge his approach as unnecessarily harsh. Dalio is unapologetic. In his Principles, Dalio proudly writes: “I have become a ‘hyperrealist.’” Dalio is also well known for how his big-picture, innovative thinking has changed investing in important ways. In fact, industry magazine aiCIO devoted its December 2011 cover story – “Is Ray Dalio the Steve Jobs of Investing?”– to him, highlighting the similarities between the two leaders’ motivations and approaches and how each has impacted his industry.

Dalio feels his life is a journey during which he must turn his visions into reality. His innovations have earned him two lifetime achievement awards

Dalio, like Jobs, feels his life is a journey during which he must turn his bold visions into reality. Dalio’s industry-changing innovations have earned him two lifetime achievement awards and won Bridgewater dozens of ‘best of’ awards. Dalio says the form of meditation he practices “is a combination of relaxation and a very blissful experience. That sounds more like an orgasm than it really is; by blissful I mean that I just feel really good and relaxed and in good shape. You go into a different mental state – neither conscious nor unconscious. But unlike when you’re sleeping, if a pin drops all of a sudden, it can reverberate through you.” It took some time for Dalio to discover a meditation technique he could master, but eventually he began to notice that even 20 minutes of meditation could make up for hours of lost sleep. It also began to change the way he was thinking about things: he became more centred and more creative. He says it has a remarkably positive effect on his state of mind and wellbeing: “When you’re centred, your emotions are not hijacking you. You have the ability to think clearly, put things in their right place, and have good perspective.” H ‘The Alpha Masters’ by Maneet Ahuja is out now, published by John Wiley (£19.99).



HedGe Issue 21

S h o r t S

Supermodel-courting fund of funds chief Arpad ‘Arki’ Busson, the closest thing the industry has to its very own sleb, is in talks to merge his $7bn fund EIM with rival asset management firms. The Financial Times and Bloomberg report the firm, based in Switzerland, has been in early-stage discussions with three potential suitors. The fund suffered four years ago when it made a £230m allocation of funds linked to Bernie Madoff’s Ponzi scheme. Busson is best known outside the industry for his high-profile relationships, including his engagement to Elle Macpherson (with whom he has two children), and an on-off relationship with Uma Thurman. Now it seems the suave philanthropist could be in line for another A-list merger. We WiLL rock you

A couple of hedgies up to no good recently. First up, Alberto Micalizzi, a London hedge fund manager has been fined a record £3m by the FSA and banned for life from working in regulated financial services. The FSA alleges that after losing in excess of £390m after Lehman Brothers collapsed,

Micalizzi lied about the deficit and launched a fake bond to cover its losses. And, in a landmark case, a judge awarded £450m in damages against collapsed hedge fund Weavering’s founder Magnus Peterson, his wife and two colleagues for major fraud. Among the hedge fund’s assets was Spring Awakening, a sexually explicit, violent and critically acclaimed rock musical [pictured above]. An asset, indeed... cristAL bALL

Ever fancied a glass of Cristal but don’t have the stamina, company or cash to guzzle the whole contents of that famous, clear bottle? If so, you’ll be pleased to hear Louis Roederer’s top drop is now available by the glass at several locations right in the heart of your parish, including Hakkasan Mayfair, the Four Seasons Hotel, the Blue Bar at the Berkeley Hotel and the Savoy Hotel’s Beaufort Bar. Cristal is only made in exceptional years, but thankfully no such limitations apply to when you can drink it.

PHotoGrAPH (Busson) adrian dennis/Getty Images; (spring Awakenign) Katy raddatz/Corbis


G o i n G L o n G

£24,000, Homage with Doves

Jamil Naqsh is generally – and deservedly – thought of as Pakistan’s most prominent contemporary artist. His exhibition Homage to Picasso is showing at the Albemarle Gallery from 28 June-21 July.

“if there were no way to short stocks, the probability of stock market bubbles would be much greater.” Bill Ackman, Pershing Square

A-List Mergers

s h o r t s

shorts m y

m ay fa i r


# 1 4

Hix at tHe albemarle, brown’s Hotel, 33 albemarle st, w1s 4bP

Acres of oak panelling. Plush leather chairs. Enough contemporary art to open a gallery on Cork Street. Sound familiar? It could be any hedge fund HQ in Mayfair. But we’re actually inside Hix at the Albemarle. The Brown’s Hotel restaurant is a hedgie haven. The semi-circular olive-green booths are ideal for lunchtime meetings, where business will quickly dissolve into pleasure,

▲ The total amount of losses on the first day of Facebook’s IPO that were caused by Nasdaq computer glitches.

$370bn ▲ The amount withdrawn from US equity funds by small investors since the Flash Crash of May 2010.

$1,350 ▲ The amount of money that 2.3 milliseconds can save a trader everyday according to trading firm Tradeworx Inc.



nu mb3rs


right about the time the menu is presented. And what a menu. It’s incredibly difficult to focus on any business once you have one of these in front of your face. As you’d expect from Mr Hix, it’s reassuringly meaty in all the right places: Dorset snails with Peter Gott’s wild boar bacon and Cumbrian black pudding for starters, anybody? Subtler dishes such as whipped beets with Herefordshire goat’s curd are accomplished, but I’m afraid should be ignored unless your want your alpha credentials questioned. For mains, a drive-by from the daily meat trolley is a must. At time of writing, Tuesday and Thursday are our favourites: honeyglazed leg of Jimmy Butler’s free-range ham and roast suckling pig stuffed with black pudding respectively. If in doubt, opt for the trolley. Anything else and you will have major food envy. And so to dessert. My co-diners decided that they were defeated at this point. More fool them. I indulged in what turned out to be the best treacle tart I’ve ever had. And I this was not exactly my first. Sweet without being sickly, dense without stodge, it was pitched just right – the side of Neal’s Yard crème fraiche a refreshingly sour counterpoint. A glass of Château Delmond 2007 sauternes finished the lunch – and me – off nicely. There was no chance I was making it back to the office. H 020 7518 4060; By Mark Hedley

Subscribe if you’re involved in the hedge fund industry and work in london, you are entitled to a free subscription to HeDGe magazine. To apply, email

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hedge Magazine ISSUE 21

s h o r t s


Art: ‘Armada’ by Jacob Hashimoto, 2011; PHotogrAPH: By Michele Sereni (courtesy of Studio la Citta)

P i c t u r e

t h i s

jacob hashimoto (Ronchini)

Kites cascade from brackets on ceilings, walls and floors to create enormous, undulating, sculptural clouds. Sculptures can be a solid colour on paper, or a complex, collaged pattern of multi-coloured cut paper hanging all around you. This is the unique world of Jacob Hashimoto. An American artist of Japanese descent, Hashimoto is having his first ever UK solo

exhibition this summer until the end of August. For the exhibition, in Mayfair’s Ronchini Gallery, Hashimoto is building a new site-specific installation compromising hundreds of small bamboo and paper kite elements. It promises to investigate themes evidenced in his previous work as he continues to explore his fascination with the intersections of painting and sculpture, abstraction and landscape.

Hashimoto draws from a variety of art-historical influences too, which explore the dialogue of Western painting. Each composition can be defined as a landscape abstraction referencing everything from American post-war abstraction to 1970s pattern design, hard-edged painting and postmodern 1990s slacker painting. h Jacob Hashimoto is at the Ronchini Gallery, Mayfair, from 28 June-28 August;



Hedge Heartland Issue 21

S H o r t S

shorts Hedge Heartland What’s hot... in Mayfair & St James’s Dan Graham ▲

Dan Graham is one of the world’s most influential conceptual artists, and he has been investigating the relationship between architectural environments and those who inhabit them since the late 1960s. Blurring the line between art and architecture, Graham’s ‘Pavilions’ comprise steel, mirror and glass structures that create diverse optical effects. They operate somewhere between functional spaces and art installations. Just don’t have too much to drink before you look at one of them as they’re confusing enough sober. Dan Graham’s work is available from the Lisson Gallery at 29 Bell Street, Mayfair.



FleminGs Townhouse ▶

Flemings Mayfair has revamped its private apartments, which are now open as ‘The Townhouse’, a luxurious, exclusive and private retreat in the heart of Mayfair. Seven bedrooms are housed in two apartments and two suites, accommodating up to 16 people. The Garden apartment has a barbecue terrace and fully-stocked bar. spencer harT The VaulT ▶

Spencer Hart has opened an exclusive new area for VIPs in the basement of its flagship store on Brook Street. Entering through a James Bond-style private entrance on the ground floor using a key card, ‘The Vault’ offers the best in bespoke tailored suits, accessories and vintage watches. There’s even Billecart champagne on hand to get you in the buying mood.

LONDON : 164, NEW BOND STREET | HARRODS | SELFRIDGES 0 20 7514 9170 | *In 1893, Frédéric Boucheron is the first of the great contemporary jewellers to open a Boutique on the Place Vendôme

hedge salon evening Boucheron


hedge salon evening with Boucheron

This Spring, Boucheron hosted the second HEDGE Salon Evening of the year at its stunning store on New Bond Street. Guests were able to wear their choice of Boucheron jewellery and watches for the evening while enjoying a Pol Roger champagne reception and three-course meal. Hine also hosted a cognac blending competition where readers were able to create their own personal label blends. H For more information:

photographY by gary Kinsman

shorts 24




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Formula For disaster . 28 talking about a revolution . 38

F e at u r e s

Peter Blake has extended the childhood he never had into a childhood we never had – and are delighted to share with him brushes with greatness . p32

F e at u r e s



The Midas ForMula Ian Stewart

Formula for Disaster

Could an equation be to blame for the financial crisis? IAN STEWART is says it’s not so simple. When considering the Black-Scholes equation, the perils of King Midas are worth heeding…

The course of human history has been redirected, time and time again, by an equation. Equations have hidden powers. They reveal the innermost secrets of nature. This is not the traditional way for historians to organise the rise and fall of civilisations. Kings and queens and wars and natural disasters abound in the history books, but equations are much thinner on the ground. This is unfair. In Victorian times, Michael Faraday was demonstrating connections between magnetism and electricity to audiences at the Royal Institution in London. Allegedly, Prime Minister William Gladstone asked whether anything of practical consequence would come from it. It is said (on the basis of very little actual evidence, but why ruin a nice story?) that Faraday replied: “Yes, sir. One day you will tax it.” If he did say that, he was right. James Clerk Maxwell transformed early experimental observations and empirical laws about magnetism and electricity into a system of equations for electromagnetism. Among the many consequences were radio, radar, and television, too. An equation derives its power from a simple source. It tells us that two calculations, which appear different, have the same answer. The key symbol is the equals sign (=). The origins of most mathematical symbols are either lost in the mists of antiquity, or are so recent that there is no doubt where they came from. The equals sign is unusual because it dates back more than 450 years, yet we not only know who invented it, we even know why. The inventor was Robert Recorde, in 1557, in The Whetstone of Witte. He used two parallel lines to avoid tedious repetition of the words ‘is equal to’. He chose that symbol as: “no two things can be more equal”. Recorde chose well. His symbol has remained in use for 450 years. The power of equations lies in the philosophically difficult correspondence

between mathematics, a collective creation of human minds, and an external physical reality. Equations model deep patterns in the outside world. By learning to value equations, and to read the stories they tell, we can uncover vital features of the world around us. In principle, there might be other ways to achieve the same result. Many people prefer words to symbols; language, too, gives us power over our surroundings. But the verdict of science and technology is that words are too imprecise, and too limited, to provide an effective route to the deeper aspects of reality. Words alone can’t provide essential insights. Equations can. They have been a prime mover in human civilisation for thousands of years. Throughout history, equations have been pulling the strings of society. Tucked away behind the scenes, to be sure – but the influence was there, whether it was noticed or whether it wasn’t. The Midas Touch

The Black-Scholes equation was devised to bring a degree of rationality to the futures market, which it does very effectively under normal market conditions. It provides a systematic way to calculate the value of an option before it matures. The equation was so effective that it won Robert Merton and Myron Scholes the 1997 Nobel Prize in Economics. Fischer Black had died by then, and the rules of the prize prohibit posthumous awards, but his contribution was explicitly cited by the Swedish Academy. The effectiveness of the equation depended on the market behaving itself. If the assumptions behind the model ceased to hold, it was no longer wise to use it. But as time passed and confidence grew, many bankers and traders forgot that; they used the equation as a kind of talisman, a bit of mathematical magic that protected them against criticism. Black-Scholes not only provides a price that is reasonable under normal conditions;

it also covers your back if the trade goes belly-up. Don’t blame me, boss, I used the industry standard formula. The financial sector was quick to see the advantages of the Black-Scholes equation and its solutions, and equally quick to develop a host of related equations with different assumptions aimed at different financial instruments. The then-sedate world of conventional banking could use the equations to justify loans and trades, always keeping an eye open for potential trouble. But less conventional businesses would soon follow, and they had the faith of a true convert. To them, the possibility of the model going wrong was inconceivable. It became known as the Midas formula – a recipe for making everything turn to gold. But the financial sector forgot how the story of King Midas ended. The end of The beginning

The darling of the financial sector, for several years, was Long Term Capital Management (LTCM). It specialised in trading strategies based on mathematical models, including the Black-Scholes equation and its extensions, together with techniques such as arbitrage, which exploits discrepancies between the prices of bonds and the value that can actually be realised. Initially LTCM was a spectacular success, yielding returns in the region of 40% per year until 1998. At that point it lost $4.6bn in under four months, and the Fed ▶

Equations have been a prime mover in human civilisation for thousands of years. Throughout history, equations have been pulling the strings of society, tucked behind the scenes 29


F e at u r e s

▶ persuaded

its major creditors to bail it out to the tune of $3.6bn. Eventually the banks involved got their money back, but LTCM was wound up and ceased trading in 2000. What went wrong? There are as many theories as there are financial commentators, but the consensus is that the proximate cause of LTCM’s failure was the Russian financial crisis of 1998. Western markets had invested heavily in Russia, whose economy was heavily dependent on oil exports. The Asian financial crisis of 1997 caused the price of oil to slump, and the main casualty was the Russian economy. The ultimate cause of LTCM’s demise was already in place on the day it started trading. As soon as reality ceased to obey the assumptions of the model, LTCM was in deep trouble. The Russian financial crisis threw a spanner in the works that demolished almost all of those assumptions. Some factors had a bigger effect than others. Increased volatility was one of them. Another was the assumption that extreme fluctuations hardly ever occur: no fat tails. But the crisis sent the markets into turmoil, and in the panic, prices dropped by huge amounts – many sigmas – in seconds. Because all of the factors concerned were interrelated, these events triggered other rapid changes, so rapid that traders could



not possibly know the state of the market at any instant. Even if they wanted to behave rationally, which people don’t do in a general panic, they had no basis to do so. The coming of The crash

The Black-Scholes equation changed the world by creating a booming quadrilliondollar industry; its generalisations, used unintelligently by a small coterie of bankers, changed the world again by contributing to a multitrillion-dollar financial crash whose ever more malign effects, now extending to entire national economics, are still being felt worldwide. The equation belongs to the realm of classical continuum mathematics, having its roots in the partial differential equations of mathematical physics. This is a realm

Black-Scholes not only provides a price that is reasonable under normal conditions; it also covers your back if the trade goes belly-up. Don’t blame me, I used the standard formula

in which quantities are infinitely divisible, time flows continuously, and variables change smoothly. The technique works for mathematical physics, but it seems less appropriate to the world of finance, in which money comes in discrete packets, trades occur one at a time (albeit very fast), and many variables can jump erratically. The Black-Scholes equation is also based on the traditional assumptions of classical mathematical economics: perfect information, perfect rationality, market equilibrium, the law of supply and demand. The subject has been taught for decades as if these things are axiomatic, and many trained economists have never questioned them. Yet they lack convincing empirical support. On the few occasions when someone has actually bothered to observe how people make financial decisions, the classical scenarios usually fail. It’s as though astronomers had spent the last hundred years calculating how planets move, based on what they thought was reasonable, without actually taking a look to see what they really did, how they really moved. It’s not that classical economics is completely wrong. But it’s wrong more often that its proponents claim, and when it does go wrong, it goes very wrong indeed. So physicists, mathematicians,

The Midas ForMula Ian Stewart

and economists are looking for better models. At the forefront of these efforts are models based on complexity science, a new branch of mathematics that replaces classical continuum thinking by an explicit collection of individual agents, interacting according to specified rules. A classical model of the movement of the price of some commodity, for example, assumes that at any instant there is a single ‘fair’ price, which in principle is known to everyone, and that prospective purchasers compare this price with a utility function (how useful the commodity is to them) and buy it if its utility outweighs its cost. A complex system model is very different. It might involve, say, ten thousand agents, each with its own view of what the commodity is worth and how desirable it is. Some agents would know more than others, some would have more accurate information than others; many would belong to small networks that traded information (accurate or not) as well as money and goods. A number of interesting features have emerged from such models. One is the role of the herd instinct. Market traders tend to copy other market traders. If they don’t, and it turns out that the others are on to a good thing, their bosses will be unhappy. On the other hand, if they follow the herd

and everyone’s got it wrong, they have a good excuse: it’s what everyone else was doing. Black-Scholes was perfect for the herd instinct, and the flaws showed. In fact, virtually every financial crisis in the last century has been pushed over the edge by the herd instinct. Instead of some banks investing in property and others in manufacturing, say, they all rush into property. This overloads the market, with too much money seeking too little property, and the whole thing comes to bits. So now they all rush into loans to Brazil, or to Russia, or back into a newly revived property market, or lose their collective marbles over dotcom companies – three kids in a room with a computer and a modem being valued at ten times the worth of a major manufacturer with a real

The equation may have contributed to the crash, but only because it was abused. It was no more responsible than a trader’s computer if its use had led to a catastrophic loss

product, real customers, and real factories and offices. When that goes belly-up, they all rush into the subprime mortgage market, and we know what happens then. is AN EQUATiON TO BLAME?

So, was an equation to blame for the financial crash? An equation is a tool, and like any tool, it has to be wielded by someone who knows how to use it, and for the right purpose. The Black-Scholes equation may have contributed to the crash, but only because it was abused. It was no more responsible for the disaster than a trader’s computer would have been if its use led to a catastrophic loss. The blame for the failure of tools should rest with those who are responsible for their use. There is a danger that the financial sector may turn its back on mathematical analysis, when what it actually needs is a better range of models, and – crucially – a solid understanding of their limitations. The financial system is too complex to be run on human hunches and vague reasoning. It desperately needs more mathematics, not less. But it also needs to learn how to use mathematics intelligently, rather than relying on it instead as some kind of magical talisman. H 17 Equations That Changed The World by Ian Stewart is out now (Profile Books) £15.99



F e at u r e s



IntervIews wIth ArtIsts MIChaEl PEPPIatt

Brushes with Greatness Influential and prolific art critic Michael PePPiatt reflects on several fascinating encounters he has had with some of the best known artists of the past 50 years, including Peter Blake, Francis Bacon, and photographer Henri Cartier-Bresson…

Peter Blake

Hammersmith, London, 2009

PhotograPh © MartINE FraNCK/MagNUM PhotoS, ©Ian Berry / Magnum Photos

One knows that Peter Blake has created an entire world of his own, peopled with tribes of jaded pop stars and pin-ups, pensive chimps and Mad Hatters, Shakespearean heroines and battered boxers. Yet this is revealed as barely the half of it, the tip of an iceberg of delectable oddities, when one is lucky enough to visit the artist and be taken round his vast, cluttered studios. There, in a modest street in Hammersmith, the whole archive of an imagination run riot is open to view. Elephants of every size and in every material plod dutifully past stacks of minutely engraved heads culled from old encyclopaedias and kitschy white sculpture lovingly retrieved from flea markets, while a large hyperrealist prize fighter (Sonny Liston), formerly in Madame Tussauds waxworks, guards the treasure with impressive fists about to flail. Upstairs in this cavern of curiosities lies a warren of small rooms put together by an obsessive collector as neat as he is eccentric. Shrines to Elvis give way to orderly arrays of bizarre signs and furniture, Baroque driftwood, assemblies of shells, once important hats, Punch and

Judy puppets and enough period toys and whatnots to satisfy whole lifetimes in search of the strangeness surrounding us all the time – if only we have the eye to find it. Like the artist and his work, the studio is a celebration of the unexpected, the unlikely and the freaky – sourced with all their weirdness intact from everyday life. Against this background of hilarious diversity, Peter Blake, as befits a master of ceremonies and a master magician, is a picture of courteous calm and benevolent ease. What gives the everyday life so poignantly encapsulated in his work an extra charge is the artist’s acceptance of all the oddity around him. In viewing it with the wonderment of a child, Blake has extended the childhood he never had into a childhood we never had – and are delighted to share with him. ▶

Blake created an entire world of his own, peopled with tribes of jaded pop stars and pin-ups, pensive chimps and Mad Hatters, Shakespearean heroines and battered boxers 33


Please drink resPonsibly

IntervIews wIth ArtIsts MIchael PePPIat

F e at u r e s

▲ Francis Bacon

South Kensington, London, 1982

PhotograPh © Ian Berry / Magnum Photos

MP Do you often start blind? FB No, I don’t. I have an idea of what I would like to do, but, as I start working, that completely evaporates. If it goes at all well, something will start to crystallise. MP Do you make a sketch of some sort on the canvas, a basic structure? FB Sometimes, a little bit. It never, never stays that way. It’s just to get me into the act of doing it. Often, you just put on paint almost without knowing what you’re doing. You’ve got to get some material on the canvas to begin with. Then it may or may not begin to work. It doesn’t often happen within the first day or two. You can never tell. I just go on putting paint on or wiping it out. And sometimes the shadows left from this lead to another image and the possibility of something else coming up… But then, you see, this is a problem. Although I quite like

them, I don’t think those free marks that Henri Michaux used to make really work. I mean, they’re better than most awful things, but they’re too arbitrary. MP Are they not conscious enough, not willed enough? FB Something is only willed when as it were the unconscious thing has begun to arise on which your will can be imposed. MP You’ve got to have the feedback from the paint. It’s a dialogue in a strange sense. FB It is a dialogue, yes. MP The paint is doing as much as you are. It’s suggesting things to you. It’s a constant exchange. FB It is. And one’s always hoping that the paint will do more for you. It’s rather like painting a wall. The very first brushstroke gives a shock of reality, which is cancelled out when you paint the whole wall. MP And you find that when you start painting? That must be very depressing. FB Very. MP Do you still destroy a lot?

FB Yes. Practice doesn’t really help. It should make you slightly more wily about realising that something could come out of what you’ve done. But if that happens… MP You become like an artisan? FB Well, you always are an artisan. This is the thing. Once you become what is called an artist, there is nothing more awful, like those awful people who produce those awful images and you know more or less what they’re going to be like. What you really want is a kind of complicated simplicity – you want simplicity, but with all the implications of everything else within it. A reduction, a compression even. That thing that somebody said years ago – “what modern man wants is the sensation without the boredom of its conveyance” – is absolutely true. One wants something that’s so much more concentrated than anything that’s gone before. But of course that almost never happens…



IntervIews wIth ArtIsts MichaEL PEPPiaTT

F e at u r e s

Henri Cartier-Bresson

Rue de Rivoli, Paris, 1987

Painting and drawing have always been my first loves, they’ve been at the source of everything I’ve done. My eye, my visual sense, whatever it is called, was formed by them 36


them – they say I’ve turned my back on photography. It’s not that at all. Painting and drawing have always been my first loves, they’ve been at the source of everything I’ve done. My eye, my visual sense – whatever you want to call it – was formed by them. I stopped drawing because I got very discouraged after I’d tried time and again to draw my own hand – and failed. Of course, it’s a difficult thing to do. Drawing is an introvert activity, and taking photographs is quite extrovert. I think the eye behind both of them is the same, but the tools you’re using – your Leica or your pencil – are totally different and require a totally different approach. After all, a photo lasts a second, then you lose it and it becomes something else. Photography is a kind of intuitive drawing. You don’t have time to go over it when you’re back in your room. It’s instant drawing really – but it’s a constant struggle with time. Whereas with a drawing you’ve got all the time in the world. You can go over it as much as you want. Nowadays I draw all the time. I never stop. Wherever I am – in Paris or in the South of France or travelling – I just draw. I never know whether what I’ve done is any good, so when I’ve done something that

seems a bit better than the rest I show it to a few artist friends for them to criticise. That kind of criticism is very useful. Sam Szafran has helped me enormously in that way. And when Saul Steinberg wrote to me saying that photography has only been ‘calisthenics, decoy, alibi’ for my real thing, I was terrifically encouraged. I never stop doubting myself. Drawing is a kind of constant self-questioning. And when you have an exhibition, the only important thing about it is that it allows you to see where you are. Even after all this time, I feel like a beginner who’s still got everything to learn. H

Interviews with Artists Eykyn Maclean London’s show will be a curatorial collaboration with art historian Michael Peppiatt entitled Interviews with Artists from 19 June-27 July 2012. The show coincides with the publication of Peppiatt’s book of the same title published by Yale University Press (£20). Eykyn Maclean, 30 St George Street, W1; 020 7499 6244;

PhoTograPh © Martine Franck / Magnum Photos

In Cartier-Bresson’s own words: One thing that drives me really mad is when people want to bury me alive – ‘So you’re the well-known photographer’, they say. It’s as if they’re talking to me about a woman I lived with for 50 years, with joy and passion, but whom I haven’t seen for the last 15. It’s not that we’ve completely fallen out, we’re still on speaking terms. But I have another love now – for drawing – and I’m monogamous. You can’t give yourself to two activities at once. It was wonderful for a time, but it’s over now. “Do you know who put me back on the right track? The art publisher, Tériade, who brought out my book, The Decisive Moment. He was a kind of guru for me, and one day, back in 1972, he said to me, ‘That’s enough photography now, Henri. You’ve said all you have to say.’ I knew he was right. I’d studied painting at André Lhote’s atelier, and I’d always wanted to paint. It had never even occurred to me that I would go in for photography until the War was over. I’d been very influenced by the Surrealists, but doing forced labour in German POW camps does tend to change your view of aesthetics. When I got back to France, I realised I wanted to wander round the world and see more of life at first hand. And I found that through photography I could have that kind of life. Everything was so different then. For one thing, there was a whole mass of reportage crying out to be done. Nowadays people take up photography for all kinds of reasons. But for some reason or other photographers get annoyed with me for having taken up drawing. They didn’t say anything when I was making films. But the idea that I’m drawing seems to infuriate

OCtAviA GAllerY

Girl on a Swing series natural pigments and acrylic resin on canvas painting 152 x 300 cm. by Salustiano

aesthetic investment works of art Octavia Gallery, 20 Camden Crescent, Bath BA1 5HY UK +44 (0)1225 484446

F e at u r e s



financial revolution MIchael GoodWIn

Talking About a Revolution Michael Goodwin brought the first computer to Wall Street

sparking a financial revolution – proving it isn’t what you know, but how fast you know it. Here’s how his story began…

At the Age of 32, in the winter of 1974, I was sitting at a backgammon table in the massive living room of a recently renovated 12th-century French chateau. On the other side of the room a fire blazed in the enormous see-through fireplace, connecting two rooms. Across from me sat Bernie Cornfeld, the immensely wealthy American financier and international playboy, who six years earlier Fortune had said was personally responsible for favourably reversing America’s balance of payments. Bernie had invited me down from London for a few days of backgammon. He was 15 years older than me and liked to play for bigger than my usual stakes. But as a Chicago bookmaker said when I was 15 and unsure whether to stick to 100% of consistent winnings at my small stakes summer game on the beach with kids my own age or to accept his offer to bankroll me for 50% of the profits against the older boys who played for bigger stakes: “Listen kid, I know odds. That’s my business. And take it from me, older doesn’t mean smarter and bigger doesn’t mean better.” He was right. That advice, in one variation or another, had come to be my guiding light. It was reinforced; when I was 16, I took a portion of my savings and invested in the stock market to make money while sitting in the classroom. I listened to my stockbroker and took his advice. When he failed me, I followed the advice of the real experts whose opinions were published in monthly newsletters until they too failed me. There was no such thing as an expert in the market. Nobody knew. The market wasn’t an investment. It was a bad bet. When I was about to graduate from high school,

IllustratIons by Wai

my guidance counsellor, another ‘expert’, advised that given my academic record – and probably my attitude – I should enter a trade school and become a plumber. This scared the life out of me. The last thing I wanted was to grow up to hold down a job. When not gambling I had been working part-time jobs, with someone else always telling me what to do, since I was 12. When the other kids were going to summer camp, taking family vacations, I was either gambling or working two or three jobs, six or seven days a week, buying clothes at wholesale, and taking the bus. That was OK while going to high school. I liked not being a drain on my father’s meagre resources, and I liked the sense of independence that came with earning a paycheck. But working a regular job wasn’t how I saw my future. Indeed, until playing against the older boys, most of them in their early twenties and for all practical purposes professional gamblers, my fantasy had been to see the world as a professional gambler; no office, no hours, nobody telling me what to do, good money, and the exhilaration that came with being a regular winner in an apparent game of chance – until I realised that they still ▶

Across from me sat Bernie Cornfeld, who six years earlier Fortune had said was personally responsible for favourably reversing America’s balance of payments 39


financial revolution Michael Goodwin

F e at u r e s

My fantasy had been to see the world as a professional gambler, until I realised that they still lived with their parents and considered themselves big shots if they owned a car ▶ lived

with their parents and considered themselves big shots if they owned a car. Doubting that my guidance counsellor was any better at predicting my ability than the experts were at predicting the price of a stock, I decided to turn a new leaf and start studying in hopes of getting smart enough not to need a traditional job. Between working part-time jobs and picking up scholarships, I earned a law degree at Northwestern University in Chicago, and in 1968 I was just shy of graduating from Columbia University in New York with an MBA. While my classmates were being interviewed for jobs, I felt the time had come to see whether all my book learning had paid off. If I could do something outstanding in New York, the place where if you could make it there you could make it anywhere, I could thereafter live by my wits and see the world as my own man. But this was 1968. There was no such thing as a venture capital industry. The internet had yet to be invented. Bill Gates was 12 years old. Columbia University graduates weren’t out starting high-tech companies. They were looking for jobs. Having no idea what to do, by chance I noticed there were no computers on Wall Street. From my previous experience as a failed teenage investor, I knew that nobody knew the right price for anything, and that Wall Street was a losing game. On the other hand, I knew how to win a card game with an apparently losing hand by anticipating what the other guy was going to do before he then did it. Taking Wall Street for the gamble it was, and remembering that older players and bigger stakes didn’t mean smarter or better, the thought occurred to me that it might be possible to beat the pros at their own game not by trying to come up

with the right answer but rather by using a computer to come up with the wrong answer faster. Needing someone to bankroll my dream, I found a self-made, 35-year-old multimillionaire New York financier smart enough to appreciate the idea, rich enough to bankroll it, and honest enough not to steal it. He liked the idea but was concerned with my lack of expertise in Wall Street and computers. After doing a background check on me and learning how I had successfully organised the passage of controversial state legislation while working part-time on the staff of the mayor of New York City, he was willing to gamble that my political

organising skills might be transferable to organising the business. As with my bookmaker when I was a teenager, the financier agreed to let me play my own game but with one condition. Unlike with the bookmaker, who if I lost I was losing his money and that would be the end of it, the financier required that if anything went wrong I would be the one on the hook. At these stakes I might have no choice but to declare bankruptcy and that would be the end of my future. It was up to me to succeed at this game. My father advised caution. I was playing out of my league. I took a contrary view. ▶



financial revolution Michael Goodwin

F e at u r e s

Creating what had never been done was unpredictable. Working with an IBM mainframe computer the size of a living room, everything took longer than anticipated

▶ Here

was my chance to be my own man. I wasn’t about to let it slip by. Besides, when up against a better player the sure way to lose was to keep playing the same game. The only way to win was to be reckless enough to leave room for luck. One month before graduating, without enough money to repair the holes in the soles of my shoes, I picked up the money, took a subway to the bank on Wall Street, and splurged $10 on a limousine for the trip home. Outfitting myself with a wardrobe more appropriate to my new station in life I boarded a jet, one of only a few times in my life, and began



crisscrossing the country to recruit a team of eminent academic economists to combine their expertise in breaking stocks and bonds into data points with my gambler’s instinct and a computer’s speed. Creating what had never been done was unpredictable. Working with an IBM mainframe time-share computer the size of a living room, everything took longer than anticipated. Eventually, after a false start that almost doomed our prospects from the outset, we created a series of investment techniques that theoretically generated a consistent profit, much as when I played cards on the beach during high school.

I organised a hedge fund and approached pension fund managers to field test the system with real money. Even though by this time Paul Samuelson, one of the economists on the team, had won a Nobel Prize, they refused to take me seriously. Regardless of our theoretical track record, they simply couldn’t believe that Harry Markowitz, our inexperienced portfolio manager and future Nobel Prize winner, could replicate such performance in the real world with a computer. Those who thought it might be possible were unwilling to take a chance on us. My financier advised I was barking up the wrong tree. I might know how to think like a gambler, a lawyer, a politician, or even like an entrepreneur. But the one person I didn’t know how to think like was a bureaucrat. I wasn’t offering anything of personal interest to the pension fund managers. They didn’t earn bonuses for better performance. Better I should sell to rich people whose wallets would notice the difference. But the big problem was: I didn’t know any rich people. Compounding the problem was that according to my financier the rich liked doing business with the rich. With no other option, I insinuated myself among the rich by affecting their manners, speech, dress, and lifestyle – including learning how to play backgammon. Eventually convincing enough of them to take the risk, I launched the hedge fund. One year later, with investments having shown less risk than a diversified portfolio of AAA corporate bonds, yet earning a consistent return better than four times their interest, I introduced the first computerised trading machine on Wall Street. H For more, read ‘The Wrong Answer Faster: The Inside Story of Making The Machine That Trades Trillions’ by Michael Goodwin (Wiley; £23.99)

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I n d u s t ry

Transformational ideas exist in people’s homes, workplaces, universities and other scientific and technical institutions BiOtECh undEr thE MiCrOsCOpE . p48

I n d u s t ry

Biotech Under the Microscope Dr robert James, managing partner of Sixth Element Capital, and oliver s’Jacob, partner of Reed Smith LLP,

say the biotechnology sector is certainly ripe for investment

A new tech boom has arrived. Steve Jobs’ creation, Apple Inc, is the most valuable company on the planet. Mark Zuckerberg’s Facebook has, in eight years, evolved from a Harvard start-up to a company worth around $50bn to corporate acquirer with its purchase of two-year-old internet fledgling Instagram for $1bn. London now has a ‘Google Campus’ in the heart of Tech City which the chancellor, George Osborne, recently launched, saying it was “the largest purpose-built space for start-ups in the whole of Europe.” So, everything in the high-tech sector is rosy across the board? Well, not quite. There’s one industry which is undervalued. Although it can’t connect you to friends or allow you to ‘FaceTime’, it can transform lives in the most astonishing ways. That sector is biotechnology. The past decade has seen a steady decline in the numbers of really active venture capital companies operating in the start-up phase. In Cambridge, in the heart of ‘Silicon Fen’, the numbers of focussed early stage VC firms has declined from seven or eight to one or two. What has caused this? Arguably, the root cause has been the poor returns generated

Biotechnology is an industry which, although it can’t connect you to friends or allow you to ‘FaceTime’, can transform lives in the most astonishing ways, even if it’s not so vibrant 48


by many firms operating at the critical early phases in the life of a start-up. Clearly there are exceptions but, as an asset class, early-stage venture capital has not been a wonderful hunting ground for investors. In biotechnology therapeutic companies, part of the explanation is that there is a double whammy effect: projects are highly capital intensive to allow them to progress through stages of clinical development and value creation but are also high risk and consequently prone to expensive failure. Another reason why the asset class has performed badly, albeit less well quoted, is the way that the capital structure of start-up companies evolve as multiple rounds of investments take place. By the time a company has got to the ‘D’, ‘E’ and ‘F’ rounds with different preference and control rights attached to each class it is very hard for the early investors, in the absence of a ‘home run’, to get their money back at all, let alone make a decent return on their investment. Transformational science and ideas exist in the UK in people’s homes, workplaces, universities and other scientific and technical institutions. So, who will fund the Mark Zuckerbergs, Sergey Brins and Larry Pages of the UK biotech industry? As with any biological system put under ‘selection pressure’, the financial system is evolving. Recently, several new funds have been announced designed to invest in UK biotechnology: the Government’s Biomedical Catalyst Initiative; the Wellcome Trust’s Sigma Fund; Index’s new Life Science Fund launched with GlaxoSmithKline and Johnson & Johnson; and the Cancer Research Technology (CRT) Pioneer Fund is also under way.

All of these have an edge to them that make them ‘non-standard’ and the CRT Pioneer Fund in particular was designed to address some of the in-built structural issues that have dogged venture capital returns. Firstly, it has been established in a partnership between two key strategic partners: CRT and the European Investment Fund (EIF), which should give the project much needed long-term

Investment Biotech

The genesis of the CRT Pioneer Fund came from people motivated to find solutions to investing in early-stage biotechnology assets. It’s a viable investment proposition

PhotograPh (opener and this page): Steve gschmeissner/ Spl

stability. The fund’s relationship with CRT means that it will have access to, and is expected to select the majority of its projects from, the world-class science base funded by Cancer Research UK. This science base has an enviable track record of creating new cancer drugs and has already created four that are on the market: Temodal, Tomudex, Zinecard and, most recently, Zytiga. Temodal is a billion-

dollar drug and Zytiga was the key asset in a biotechnology company called Cougar Biotechnology which was acquired by Johnson & Johnson in 2009 for $1bn even before Zytiga was approved by the FDA. Secondly, the CRT Pioneer Fund’s focus is on investing in advancing projects through various stages of pre-clinical and clinical development before partnering, rather than buying equity in start-ups.

This structural feature, built into the Fund documentation, will make the CRT Pioneer Fund highly capital efficient by avoiding the significant infrastructure costs associated with most start-ups. It also means that the returns to the Fund will principally come from owning a share in the future cash flows generated by the underlying pharmaceutical asset rather than ordinary ‘A’ or ‘B’ shares that an early stage venture fund would typically acquire. This crucial structural difference should make the CRT Pioneer Fund much less susceptible to dilution. The genesis of the CRT Pioneer Fund came from people motivated to find solutions to a seemingly insoluble problem of making investing in early-stage biotechnology assets a viable investment proposition. This led to the creation of Sixth Element Capital, a new fund management and advisory firm dedicated to the biotech and healthcare sector, which developed a thriving relationship with CRT and EIF as they each saw the opportunity to plug the investment gap. With a core team in place, and with the aid of specialist lawyers and other advisers to design a commercial and legal environment in which such a Fund could flourish, the CRT Pioneer Fund was born. It may all sound simple, but it took several years for this to come to fruition. Perhaps, this is the first sign of things to come. Investors now have to be as innovative and forward-thinking as the scientists and entrepreneurs themselves in evolving new financial instruments and other structures that will help regenerate the investment this sector so needs. H Dr Robert James can be contacted on 07774 269552, or by email: Oliver s’Jacob can be contacted on 020 3116 3642, or by email:



I n d u s t ry

Anchored in Innovation Looking back over a career creating some of the most exciting vessels to grace the seas, luca Bassani antivari, CEO of Wally, says it’s all about the right shape, purpose, and ocean… Yachtsman and entrepreneur Luca Bassani Antivari founded Wally in 1994, creating technological and visual masterpieces that turned conventional sailing wisdom on its head. In 2001, he did it all again when he launched a powerboat line, including the revolutionary Wallypower 118, which outshone even the dazzling Scarlett Johansson in Michael Bay’s 2005 movie The Island. On why he started Out

I couldn’t find a sailboat that was both fast and comfortable enough at the same time; cruising boats were too slow, and racing boats were too uncomfortable. I thought, surely both old and new technologies could be applied to create a completely different, much better boat, with fantastic performance, easy manoeuvrability and great comfort inside. On the Origins Of his design ethOs

I have always said that our aesthetic, our style, came about organically. I didn’t want to make a statement in design, I wanted high performance, a boat that was easy



to sail and able to go fast even in rough conditions, and a boat that could be open to the sea around it, not just a floating chalet. On why bOat design has been sO cOnservative in the past

There are two reasons: one is cultural, the other is economic. Boat clients and shipyards have always been quite traditional and conservative, and very afraid of the sea. They probably don’t consider the real use of their boats well enough; they wanted to make boats capable of crossing the Atlantic, but their customers were using them only on weekends, or for very short cruises. And economically – and we’re talking mainly about powerboats here – it was much easier to produce boats with more rounded shapes, like everybody did. This style of boat, in my opinion started with a car: the first A6 by Audi. It was very – how shall I say? – ‘elliptical’ in its design approach. All of the boats copied that design, in my opinion, because it was easier to produce them in this way. The car that has the most similarities in terms of style and design with a Wally yacht would be a Lamborghini. You can see that combination of rounded shapes, flat surfaces and sharp corners.

I can innovate. I’ve sailed a lot of boats over the years, but the last I actually owned was the Wallypower 118 [pictured]. At the same time, I was racing different sailing boats.

On why he dOesn’t have a favOurite

On the wally race fleet

We make so many boats – it’s very difficult to say I like one any more than another. But I do love the projects where I have had most freedom to innovate. Some boats are driven more by customers who have very precise ideas about what they want, but if I have to think about my personal fun in designing and building a boat, it needs to be one in which

I think it’s very important to have a fleet of racing boats, and let me give you the example of Ferrari. Ferrari is famous mainly because they always race. The flagship for the Ferrari brand has always been its fleet of racing cars, and this then provides information for their production cars. In our case, our racing community is our flagship in the same way.

Luxury Luminary Luca Bassani antivari

On the future Of bOat design

The big innovation we will see very soon in sailing will be the replacement of traditional rigging with wings. We have been testing prototypes, and we really believe they will be the future of sailing, bringing greater performance and a simpler way to sail. While in powerboats, we have a range of innovations – in the hull, and in the engines. This comes mainly from the automotive world; all the innovations in terms of energy saving and reduced emissions are coming from there. And then we will probably also have advances in renewable energy, such as solar

and wind energy. But all of these must be developed and tested on a greater scale. Wally is constantly developing and testing

Boat clients and shipyards have always been quite traditional and conservative, and very afraid of the sea. And they probably don’t consider the real use of their boats

new technologies, it really is in the soul of our brand. You can patent, but the best protection for the brand is to go on and deliver a constant flow of innovations into your products. On his favOurite place tO sail

Because I live in Europe, I have to talk about the Mediterranean, and in the Mediterranean I love Corsica. It’s wild, it’s always been very protected by the local population and you still find a lot of the coast remains completely untouched. Here, the Mediterranean is as fresh today as it was 100 years ago. H



Hedge funds aima

I n d u s t ry

A Model For Success

The financial crisis may have damaged the industry’s reputation – unfairly, as it turns out – but there are many reasons why the hedge fund model makes sense, says AIMA CEO Andrew BAker At the onset of the financial crisis, it was not uncommon for some policymakers to blame hedge funds for the market turmoil. And even though the major report into the crisis by Jacques de Larosière, the former managing director of the IMF, subsequently concluded it was a banking crisis and the role of the hedge fund industry had been marginal, the need to stress the contribution of the industry did not go away. We at AIMA have set out to explain why it is useful that hedge funds exist. We have calculated that 300,000 professionals work in the industry globally – including 40,000 in Britain – either at the firms that manage the investments or indirectly through their networks of legal advisers, consultants, administrators and other service providers. We have estimated that the tax contributions those individuals and their firms make are counted in the tens of billions of dollars. And we do not overlook the fact that, as well as making significant additions to governments’ tax-takes around the world, no hedge fund has ever been bailed out by taxpayers’ money. At a more technical level, it is widely acknowledged that hedge funds aid efficient price discovery and add liquidity to a whole variety of asset classes and markets. Such activities matter, since they can help to reduce the cost of financing and ensure that scarce capital goes to well-run companies. There is also a strong financial stability case for the industry: many academics say it is desirable for risk to be dispersed among

Institutional investors like university endowments and pension funds now account for most of the assets under management globally for the hedge fund industry – nearly 60% 52


comparatively small financial firms like hedge funds rather than being restricted to a small number of ‘too big to fail’ institutions. And hedge funds can help to dampen the worst effects of market crises by acting in a contrarian way. Then it is worth considering who would lose out if hedge funds did not exist. One of the main trends since the crisis has been the increasing allocations to hedge funds by institutional investors. University endowments and pension funds are among the institutional investors who now account for a significant majority of the assets under management globally for the hedge fund industry (nearly 60%, according to a recent AIMA/KPMG survey). That is a big change, because even a few years ago, the majority of the industry’s investors were still high net worth individuals. This ‘institutionalisation’ of the industry has been a game-changer. Institutions are socially valuable because they are guardians of investments on behalf of the man in the street. Investment gains by hedge funds help to grow the pensions of ordinary citizens, boost the coffers of universities and charities and cut the cost of insurance premiums, while the ability of hedge funds to manage their portfolios in a way that other asset managers may not be able to means that such important investments can be hedged against downside risk. That institutional investors – which take due diligence and appropriate risk management, governance and regulatory compliance very seriously – are confident in the abilities of the hedge fund industry to negotiate the current stormy weather is a tremendous vote of confidence. A recently-published study from the Centre for Hedge Fund Research at Imperial College, which we commissioned along with KPMG, went a long way to explain why there is such confidence in the hedge fund model. It provided powerful proof of hedge funds’ ability to generate stronger returns than equities, bonds and

commodities and to do so with lower volatility and risk than equities. And it confirmed that most investment returns go to investors – the subject of considerable debate lately. The paper found that, out of an average gross return over 17 years of 12.61%, 9.07% went to the investor and 3.54% to the manager. Put another way, 72% of the profits went to the investor and 28% to the manager, providing a strong rebuttal to those who have suggested that the profit share may be the other way round. Finally, I am encouraged by the progress that is being made with the industry’s key audiences – not only investors but politicians and regulators. Where in the past hedge funds were often blamed for the financial crisis, politicians now, insofar as they attribute blame, tend to point the finger more vaguely at unidentified ‘speculators’ or ‘traders’. That may seem like a subtle distinction, but it reflects a growing acknowledgement in policymaking circles that hedge funds are not a problem to be solved but an important contributor to markets and the wider economy. H Andrew Baker is CEO of the Alternative Investment Management Association.

Described as ‘the best shirt on Jermyn Street and hence the world’, our Hilditch & Key shirts are produced to the highest standards using only the finest two fold fabric with real shell buttons. Since 1899 we continue to create our shirts using the same techniques and attention to detail every step of the way. The result is a truly remarkable shirt that has to be worn to be appreciated.

Hilditch & Key Ltd, 37 & 73 Jermyn Street, London, SW1Y, UK Tel +44 (0) 20 7930 5336

In February 2010, two great English companies with a combined trading history of 220 years were brought together. The esteemed and much-loved hatter Bates acquires a new home within the flagship Hilditch & Key store on Jermyn Street. Hilditch & Key and Bates are now able to offer customers arguably the finest shirts and hats in the world. c Bates have supplied the discerning gentleman from their enchanting Jermyn Street shop in London since 1898. Today Bates continues to thrive from its new home within the Hilditch & Key flagship store, offering a personal and friendly service to customers from throughout the world.

Edward Bates Ltd at Hilditch & Key 73 Jermyn Street, St. James’s, London sw1y 6np Telephone: +44 (0) 20 7734 2722

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So much of business is about making first impressions: from your handshake to your business card; from your meeting room to a good cup of coffee. Get these small details wrong and you’ll be on the back foot from the word go. Serve your clients the best quality coffee as soon as they walk through the door, on the other hand, and you could lay the foundations for a prosperous relationship that will last way beyond that first meeting. ▶

A touch of Zenius Whether you’re aiming to impress corporate clients or just keep your hard-working employees perked up and loving their work, nespresso has the coffee-based business solution for you…



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Eight Grands Crus at Your Fingertips By Nespresso At Nespresso, they refer to their coffees as Grands Crus because they are carefully selected from the world’s finest coffees. Only 1% to 2% of the world’s production meets the high quality standards set by Nespresso. Eight varieties of exceptional Grands Crus, ranging from mild and aromatic to full-bodied and intense, will ensure your company’s absolute pleasure and enjoyment, at any time and for any taste.

RISTRETTO ORIGIN INDIA: A marriage of the finest Arabicas with a hint of Robusta from Southern India. Fullbodied with powerful character

RISTRETTO: Pure and dark-roasted South and Cental American Arabicas make this a coffee with dense body and distinct cocoa notes ESPRESSO FORTE: The complex aroma of this intensely roasted espresso is a balance of strong roasted and fruity notes ESPRESSO LEGGERO: A blend of South American Arabicas and Robusta. Adds smooth cocoa and cereal noted to a well-balanced body

LUNGO FORTE: A complex blend of South and Central American Arabicas, it holds intense roasted notes with a subtle hint of fruit LUNGO LEGGERO: A delicate blend of lightly roasted East African, South and Central American Arabicas. It’s aromatic with mild notes of jasmine

ESPRESSO DECAFFEINATO: Darkroasted South American Arabicas with a touch of Robusta bring out its subtle cocoa and cereal notes

LUNGO DECAFFEINATO: A blend of decaffeinated South American Arabicas and Robusta revealing red fruit balanced with cereal notes



The Nespresso Zenius is the first coffee machine with all the right connections ▶ The remarkably clever and stylish Nespresso Zenius is the easiest, most efficient and most cost-effective way of delivering the perfect cup of coffee to your clients and employees. Nespresso’s most technologically advanced business-to-business coffee machine uses an integrated SIM card to communicate with Nespresso’s Customer Relationship Centre. The Neslink software allows Nespresso’s Consultants to anticipate capsule replenishment and machine maintenance to deliver services before you even know you need them. Usability in the office is key, too, and Nespresso professional machines are adaptable to all space and venue configurations, from boardrooms and meeting rooms to general office areas, enabling you to bring a wealth of flavours and aromas to life whatever the situation. In one of the most challenging markets in memory, businesses are increasingly attuned to the importance of providing high quality coffee, when it comes to keeping employees driven, motivated and happy in the workplace. A 2011 employee motivation and loyalty study conducted by consulting firm Bain & Co indicated that the provision of high quality coffee in a work environment is an extremely positive motivator for staff. It made them feel more appreciated by their employer. Bain & Co also calculated that high quality coffee offers a high employee

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impact and relatively low cost when compared with other benefits such as tea, subsidised meals and support for sports and leisure activities. There are obvious and notable benefits, too, in making high quality coffee available on-site, removing the tendency for employees to take lengthy breaks to buy takeaway coffee. So, while the rewards of having the perfect cup of coffee available in your office at the touch of a button are clear, the reasons for choosing the Nespresso Zenius are even greater. Not only is it the most innovative and efficient way to serve Nespresso’s exceptional Grands Crus to clients and employees alike, but you’ll have immediate on-demand access to the brand’s dedicated coffee experts and unparalleled levels of customer service included. Nespresso’s dedicated customer service helpline is available 24 hours a day, seven days a week, with 1,200 technicians in over 60 countries available within hours of taking your call and replacement capsules delivered inside 48 hours. Serving your clients and employees a quality cup of coffee says a lot about your business. Nespresso understands this, which is why it has created a coffee machine that caters to business needs like never before. Once you have switched on the Zenius, aromatic coffee perfection awaits. And you don’t need to wait for the Zenius – it is available now, exclusively from Nespresso Business Solutions. H If you want to know more about Zenius, or would like to arrange a complimentary tasting, please call 0808 100 8844(UK)/1800 818 669 (ROI). Alternatively, discover the extensive range of Grand Cru coffees and machines at




Magnificent repoussé scenes of griffin and gazelle adorn this rare gold cup from the 4th century BCE - 2nd century CE. With a probable Scythian origin, this masterpiece was reportedly found in Northwest China. ANALYTICAL PROCEDURES PERFORMED ON THIS ARTIFACT • Radiographic Examination - (Expert Analysis Williamsburg, Virginia) • XRF Analysis - (Expert Analysis Williamsburg, Virginia) • Uranium, Thorium-Helium Dated - (Physics Institute at the University of Bern, Switzerland & Curt-

Engelhorn-Zentrum Archaeometric in Manheim, Germany)

• Tool Markings, Construction & Patination Studies - (Independant Expert Analysis)




855 - 266 - 9970 TKAA115-14-105636-3

gAlleRy: FiRe up youR engineS . 60 WAtcheS: Some SeRiouS FAce time . 66 motoRS: DRiving up StAnDARDS . 70 tRAvel: tAke it to the mAx . 75 ARt & AntiqueS: pReciouS metAl . 83

R e wa R d s

When Audemars Piguet launched its iconic Royal Oak, in 1972, it was taking a giant leap into the unknown A Right RoyAl SucceSS . p65


Fire Up Your Engines Whether it’s a mid-life crisis or a life-long love affair, we’ve found the Harley to top all Harleys. Or perhaps a giant mantis is more your bag? We’ve got that covered too, says Mark Hedley




Shaw Speed & Custom Strike True II There is a place where ‘supersized’ is considered lightweight; where bespoke is too common; and where Arnold Schwarzenegger is considered a bit of a girl: welcome to Shaw Speed & Custom. If you’ve always fancied a Harley-Davidson but thought, ‘nah, it’s just a bit understated for my tastes’, then Shaw is the company for you. The Brighton-based custom shop creates iconic one-off Harleys including this, the Strike True II. It’s certainly a whole lot of Harley. Are you man enough?





FAIR DUES: Masterpiece London brings together a wide range of top exhibitors from the luxury world. Held from 28 June-4 July at The Royal Hospital Chelsea, London SW3, this is the Fair’s third year.

Edouard Martinet sculptures You may well think that little good can come from the rear end of an old Peugeot 404 – but French sculpture artist Edouard Martinet would beg to differ. The life-long insectophile creates giant entomological sculptures from old car parts and other junk, which he’s picked up from flea markets and boot sales. Take this 90cm-high Praying Mantis: the head is two indicators; the abdomen a bike fender and car ventilator; and the forelegs consist of garlic presses and olive pitters. Some pieces take months to create, but for the dragon fly [above] he had to wait 15 years before he could find the right part to finish it. Available from the Sladmore Gallery on Jermyn St, the pieces range from £5,000-£20,000.



THE WORLD’S LEADER IN SCIENTIFICALLY DOCUMENTED ASIAN ANTIQUITIES A N T IQU I T I E S AS A N AS SE T C L AS S FACTS: • The most stable and fastest growing international investment from 1929 to 1986 was in Asian antiques.

• Fine Asian antiques have increased in price between two and three hundred percent over the last three years. The rarest and finest have increased at an even higher rate.

• Scientific analysis using the appropriate combination of tests by the world class authorities should be considered integral to major purchases.

The strikingly crisp high relief of this set of ritual gold artifacts is a notable trait of some of the finest Goryeo dynasty (c. 918 - 1392 CE) metal work.


• Unlike investments that yield roughly comparable financial rewards, antiques and fine arts • XRF Analysis enhance one’s life and nourish one’s -Expert Analysis Williamsburg, spirit. Virginia

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• The artifacts that combine beauty, high technical expertise and historical consequence have the broadest market. • Currently, important ancient Asian artifacts that have a relationship to the famed “Silk Road”, from the Middle-East to China and Mongolia, are among those that have the most stable values.

“We are only said to be alive in those moments when our hearts are conscious of our treasures” Thorton Wilder




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This rare and extraordinary rhyton would probably have served the finest of wines to ancient nobility. The rhyton is often shown in Greek scenes of Bacchanalia but this Central Asian masterpiece can be attributed to the relatively narrow span of the 5th – 3rd centuries BCE. ANALYTICAL PROCEDURES PERFORMED ON THIS ARTIFACT • XRF analysis - (Expert Analysis Williamsburg, Virginia) • Radoigraphy - (Expert Analysis Williamsburg, Virginia) • Tool Markings, Construction & Patination Studies - (Independant Expert Analysis) • Metallographic / Metallurgical Analysis - (by Dr. Peter Northover of Oxford University)




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Watch guards AudemArs Piguet


A Right Royal Success Audemars Piguet’s Royal Oak broke new ground when it was launched in 1972, and 40 years on it remains the standard by which all other luxury sports watches are judged. By Jon Hawkins So congeSted iS the market for luxury sports watches today that it’s hard to imagine a time when the idea of putting a work of Swiss horological art inside a rugged, sporty body was revolutionary. But when Audemars Piguet launched its iconic Royal Oak in 1972, it was taking a giant leap into the unknown. This, after all, was a luxury watch made from stainless steel, with an integrated strap, and an unusual octagonal ‘porthole’ bezel with visible screws, at the price of a gold watch. These days the Royal Oak has swapped its precocious upstart tag for a role as one of watchmaking’s enduring icons, with a lasting influence on watch design that you can still easily spot in any dealer’s window 40 years after it was launched. To mark the occasion, Audemars Piguet has released a number of tributes to the legendary watch, including this, the OpenWorked Extra-Thin Royal Oak. Like the original, it uses an ultra-thin movement just over 3mm thick inside a 39mm case, though stainless steel makes way for platinum and the dial – as the name suggests – is open to allow a peek at the internals. The caseback is open, too, revealing the inscribed, 22-carat gold monobloc oscillating weight. The watch will be produced in a limited edition of 40 (naturally), and Audemars Piguet is unlikely to be short of takers for this sensitive and elegant homage to one of watchmaking’s genuine game-changers. H

When Audemars Piguet launched its iconic Royal Oak in 1972, it was taking a giant leap into the unknown. This, after all, was a luxury watch made from stainless steel 65


R ewa R ds

Some Serious Face Time From orientating yourself in the First Class lounge to, well, simply telling the time wherever you happen to be in the world, Jon hawkins has tracked down the timepiece for you…

Zenith Pilot Doublomatic, £8,600 The Doublomatic is a rare beast: clever, beautiful and practical. Along with a world time complication and a chronograph it also has an alarm, so there’s no excuse for tardiness.



IWC Big Pilot Perpetual Calendar Top Gun, £29,500 A timepiece no Maverick should be without, this is one of the most complex pilot’s watches ever made. Includes a case and titanium crown. Best of the best?

OMEGA Seamaster Aqua Terra GMT, £4,780 Equipped with a revolutionary co-axial movement, the Aqua Terra GMT fuses high performance with classic style. The red GMT hand can also be used for compass orientation.

WATCh GUArds Travel TimepieCes

Bremont World Timer ALT1-WT, £3,995

Breitling Transocean Unitime, £8,460

Based on a watch originally produced for the crew of the military Boeing C17 Globemaster, Bremont’s World Timer makes the same over-engineered, ultradurable brilliance available to us civvies.

Harking back to the days when air travel wasn’t just several joyless hours spent in the intimate company of the great unwashed, the Unitime brings retro glamour to the modern globetrotter.

Glashütte Grande Cosmopolite, €34,000 Glashütte Original has managed to squeeze a flying tourbillon, a perpetual calendar and dual-timezones into a single watch. With only 25 being made you’re unlikely to spot many others.




The virtues of the dragon are exemplified by this powerful gold torque with dynamic double dragons displaying exquisitely textured and individually made scales and details. Thick curving horns sweep back over the long pointed ears of the rather wolf-like dragon heads. With muzzles drawn into ferocious snarls, these mighty beasts express the formidable strength of the Scythians, one of ancient Eurasia’s most powerful cultures. This ancient masterpiece is dated from the 2nd Century BCE to the 1st Century CE.

Meaningful and powerful ancient styles combined with their fascinating and innovative techniques have certainly provided major inspiration for most of the world’s great jewelry makers of recent times.

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• XRF analysis -Expert Analysis Williamsburg, Virginia

• Tool Markings, Construction & Patination Studies

-Independant Expert Analysis

• Uranium, Thorium, 4Helium Dated

-Physics Institute at the University of Bern, Switzerland & Curt-EngelhornZentrum Archaeometric in Manheim, Germany

Exceptional ancient jewelry and personal adornments such as those shown in this ad can range in price from $8,000 - $3,000,000 US dollars. For specific pricing and availability please call TK Asian Antiquities at 855-266-9970.

New York · Virginia · China 855-266-9970 •


Driving Up Standards Losing himself in the plush surroundings of the Bentley Mulsanne, Mark Hedley decides that not all traffic jams are created equal…

Bentley Mulsanne Engine Power Torque Top Speed 0-60mph Price



6.75ltr V8 505bhp 752lb-ft 184mph 5.1 secs £225,900

Motors Bentley

I’ve decIded It’s time to change the way we drive. You may consider that being stuck in an exasperating two-hour Fridaynight tailback on the North Circular would not be the most likely scenario in which to have such an epiphany. But it wasn’t where I was that lead to it; rather what I was in. If I had been driving my own car, I’d have been banging the steering wheel in frustration, blaspheming at anyone who dared leave more than a two-inch gap between the car ahead, and generally doing my best to emulate Basil Fawlty on an angry day. But I wasn’t in my car, oh no; I was in a Bentley Mulsanne. Life somehow becomes more serene, more refined, in a Bentley. And it makes you want to drive in a way that reflects this. In his excellent new book The Gentleman’s Guide to Motoring, Vic Darkwood, co-founder of The Chap, bemoans the loss of driving’s golden age: “Just because most contemporary car design has all the aesthetic finesse of your average vacuum cleaner and the majority of our fellow road-users often exhibit behaviour no better than slavering beasts, it doesn’t mean that those of an independent frame of mind, poetry in their soul and vim in their trousers can’t take a bash at reclaiming the whole adventure of motoring as the sanctified mission of the gentleman.” Step one: buy a Bentley. From the moment the door closes, with the reassuring thud of a Döttling safe, you’re sealed within a serene silence. It’s as if you’re in some holy place: a shrine to driving. With acres of glossy walnut burr veneer and a field of deep-pile carpet, it’s a beautiful place just to be, let alone drive. To paraphrase Edmund Blackadder, it’s a car in which you can laugh in the face of traffic jams and tweak the nose of road rage. I’m not usually one for listening to ▶

It’s as if you’re in some holy place: a shrine to driving. With acres of glossy walnut burr veneer and a field of deep-pile carpet, it’s a beautiful place just to be, let alone drive 71


Motors drilldown1### Bentley DrillDown2###


▶ classical

music. But then, I’m also not usually one for driving a Bentley. When in the Mulsanne, it just feels like the right thing to do. Especially considering the 1,100W Naim stereo with which you have to play. This £5,000 piece of kit would sound impressive in a 1,000 sq ft living room – but in the cabin of the Bentley, it’s quite simply breathtaking. Sitting back in the diamond-quilted leather, as rich and soft as foie gras, listening to Delibes’s flower duet from Lakmé, as one does, it’s a bit like being in an advert for British Airways First Class. There are even tray tables mounted on the back of the front seats. The only thing missing is an air hostess. (Although, if you use Bentley’s Mulliner service to customise your Mulsanne, who knows what’s possible?) As it happens, at more than 18ft long and 6ft wide, the Mulsanne is not that much smaller than a Boeing 747. And the engine is pretty jumbo, too. You’d have thought that a 6.75litre V8 might be able to cope all right on its own, but good ol’ Bentley has thrown in a couple of turbo chargers just to be on the safe side. The result is 505bhp and enough torque to take on a tractor. The whisper-silent V8 only pipes up when you give it some welly – and you’ll certainly feel it: the revs reverberate through your foot and rattle your rib cage. Fortunately, the chunky rear wheels – suited and booted in polished 21-inch alloys – cope admirably. I did manage a bit of wheelspin once, then immediately chastised myself; that’s not what a Mulsanne driver would do, after all. In fact, as my wife will attest, the only thing better than driving it is being driven in it. The heated seats; the TV screens; the champagne cooler hidden in the arm rest; the detachable tumbler holders snuggly stored in their own drawer: all these little

touches add up to a unique passenger experience. Few cars could compete. Details have always been one of Bentley’s strong suits. Its signature Clos de Paris guilloche work is everywhere – inside the door handles, on the back of paddle shifters, around the stereo knobs, and even inverted on the key fob. And the flying Bs also make a fair few appearances – on the sat nav panel, on the engine cover, and it’s even there on the brake pedal. As for the external aesthetics, they’re definitely unapologetic; it has real presence. Harking back to the regal Bentleys of old while still embracing enough modern flair not to look slavishly retro. It’s also much better looking in real life than in the photos and certainly seems to provoke a reaction from the great unwashed. One

On another occasion, a group of teenage school children stopped their game of football and began applauding. One kind fellow even seemed to gesticulate with two fingers… 72


minibus of young men decided the best way to show their appreciation for the car’s flowing curves was by showing us some of their own, er, flowing curves – in areas upon which I’d rather not dwell. On another occasion, a group of teenage school children stopped their game of football and began applauding. One kindly fellow even seemed to gesticulate in some type of royal wave comprising two separated fingers – perhaps Masonic? – but I can’t say that was definitely directed at us. As for the driver? I was like a pig in shit. OK, that’s definitely not what a driver of a Bentley should say. But it’s true. And beyond the Mulsanne’s obvious charms, I had also become a better driver. Somehow its class rubs off on you. Back in 1926, a year after Bentley Boy Woolf Barnato bought the company and created the iconic Bentley Blower, LVE Smith wrote the book How To Drive A Car Correctly. “A car driver would not think of eating his meals like an uncouth savage,” he advised, “and yet many have manners when at the wheel which are despicable.” And if you decide to buy one, do remember there’s only one thing worse than being a bad driver; that’s being a bad driver in a good car. H For more information, go to


Elegant low-relief scrolling vines and lotus blossoms form a single continuous pattern around each of these rare gold bracelets from the Goryeo dynasty of Korea (c. 12th century CE). Renowned for the metalworking technique known as “beat and impress”, the Goryeo crafted truly magnificent examples of high-relief work in gold. This pair of artifacts displays a more subtle relief than many, and the ring matte ground, against which the vegetal motif is set, is far more refined than is often encountered. ANALYTICAL PROCEDURES PERFORMED ON THIS ARTIFACT • XRF analysis - (Expert Analysis Williamsburg, Virginia) • Radoigraphy - (Expert Analysis Williamsburg, Virginia) • Tool Markings, Construction & Patination Study - (Independant Expert Analysis)




855 - 266 - 9970


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Take it to the Max

Lots of banks send their staff on a tour of duty in India and many hedge funds require a business trip or seven to the continent of dreams. So, Martin Deeson asks, where’s best to live and work in the Maximum City?

These days iT pays to go where the work is. So, like so many other people, work took me to Mumbai for ten days. Fabulous city, horrendous housing market. There are approximately 18 million people in Mumbai and around half of them (some people say more, again no clarity on this one) live in one of the city’s slums. As we found out during the course of our stay, the word ‘slum’ encompasses a breadth of meaning as wide as does the word ‘London’. Some are well-organised communities only lacking sanitation to make them viable. Others are little more than simply shanty towns. If you, understandably, don’t fancy living in one, then as a Westerner out here on business for a few months you can expect to pay at least as much as you’d pay at home to rent a reasonable apartment. So, rule number one is relatively simple: make sure someone else is paying the rent.

Because we knew we had meetings within hours of landing, we chose to fly to Mumbai with Jet Airways, India’s leading airline for both international and domestic flights. The airline offers business travellers one of the biggest business beds in the sky. Première (business) flyers on Jet enjoy a virtual living room – a space to work or kick back in flat-bed that’s over six-foot long and wide enough to hold even the, ahem, larger financier in comfort. Best of all, there’s a 44” divider screen, high enough to avoid annoying conversations with strangers (or colleagues, for that matter). Add to that the oversized table, laptop power, telephone, text, email and live text news and it all adds up to a flying office. An office, that is, with a great wine list and fine food created by Kensington’s Bombay Brasserie and Michelin-Starred chef Yves Mattagne. Also, for the fund manager who has everything, it’s worth remembering that Jet

Airways is the only airline to fly to India with private suites in First Class. The suite doubles up as a one-to-one meeting room, and offers a private dining experience. Two hours after landing at Mumbai’s gleaming and recently re-vamped Chatrapati Shivaji International Airport and I’m in my room at the Four Seasons Mumbai [pictured], a gleaming tower block of chicness in the up-and-coming area of ▶

If you don’t fancy living in a slum, you can expect to pay at least as much as you’d pay at home for a reasonable apartment. So rule number one: make sure someone else is paying the rent 75



▶ Worli,

admiring the view of the Arabian Sea from the upper floors. Like all Four Seasons, the design is effortlessly cool while unmistakably remaining rooted in the local area and managing to be distinct from every other hotel in the group’s international stable. On the bedside table you’ll find a copy of Shantaram. The most memorable parts of Gregory David Roberts’s book are set in the Bombay slum he lived in and also in the streets of Colaba right behind our next destination, the Taj Mahal Palace. But tonight we stay at the Four Seasons and nurse our jetlag back to life with dinner

in the San-Qi restaurant, where a good wine list and chefs, and indeed menus, from all over Asia offer Japanese, Chinese, Indian and Thai pamper to the weary international traveller’s every need. Afterwards, up at the Aer bar [pictured on previous page] on the hotel’s roof we meet friends in the city’s hippest rooftop bar. On a Saturday night the place is rammed, the views are stunning and the drinks (at London West End club prices) flow like water. We make new friends with a bunch of IPL players and we toast the Four Seasons as the best landing place for the visiting ex-pat businessperson.

IndIan jewels: (clockwise from top left) Mumbai’s iconic grande dame is just as appealing as ever – certainly enough to make our intrepid reporter return on practically an annual basis; the pool at the Taj lands end; the Taj Mahal Palace’s seagull suite was part of the rebuilding after 2008’s terrorist destruction



Things don’t seem quite so rosy at 9am the next morning as we sit in Mumbai’s notorious traffic on the way to our first business meeting of the day. This city is changing so fast that friends returning to live here again after a two-year absence say they feel almost like strangers. Some things, however, only get worse – and the traffic is quite definitely one of them. After a couple of days of exciting modernity at the Four Seasons it is our duty to inspect a more sedate and oldfashioned destination for the regular business traveller: the Taj Mahal Palace. I have to admit to a bias here, as this is one of my favourite hotels in the entire world. It’s not just because of the quiet majesty of a grande dame which has been rebuilt to an amazing standard after the horror of 2008’s terrorist attacks – but also because the contrast between the glorious opulence and calm inside with the delicious madness of the streets outside is so intoxicating. To be around the pool in the Taj’s central courtyard and hear the bustle of Colaba outside is to hear the promise of India. Many, many long journeys have started in this hotel – sitting as it does just yards from the Gate of India where the cruise liners once sent their passengers ashore to start new lives in the subcontinent. In the words of Peter Foster writing in the Telegraph: “For any serious foreign investor, businessman or wealthy tourist visiting India’s commercial capital, ‘The Taj’, as it is universally known by the cognoscenti, is always the first choice.” If I had to return on business regularly to Mumbai, then it would be to the Taj I would return time and again, as many do. For many in banking and finance, though, Mumbai is not just a place one comes several times a year. For the more adventurous, the city can be a common

The Taj Mahal Palace is a grande dame which has been rebuilt to an amazing standard after the 2008 terrorist attacks. The opulence and calm inside contrasts with outside

Travel MuMBAI

Taj Lands End is a fabulous hotel which could not be more different to the Palace, while it still manages to include comparable levels of service and comfort in an entirely modern setting destination for a stay of a year or more. The city is full of the modern Western itinerant ex-pats whose companies have moved them round the roundabout of Shanghai, Hong Kong, Dubai and now Mumbai. If you find yourself living in the city for many months, what is the answer in a city where real estate prices and a terminal shortage of acceptable apartments makes short-term renting an intimidating alternative? For the lucky ex-pat there exists the Taj Wellington Mews Luxury Residences, a 14-storey serviced apartment tower sitting in 2.6 acres of city centre landscaped greenery within sight of the Taj itself. In the 80 homes you get world-class hotel luxuries and service combined with the independence that you would really start to miss after a few months living in a hotel room with all that entails. Some residents have stayed in Wellington Mews for years. With on-site day-care for children, parking, pool and deli, it’s easy to see why for so many ex-pats staying a little longer than we were, the Taj Wellington Mews is the first port of call. After a week in the city, we were starting to feel like old hands. We’d done the top tourist hit of ‘butter pepper garlic crab’ at Trishna’s. We’d learnt to time our meeting to avoid moving in the midst of rush hour. We’d gone across on the ferry to Alibaug where the Mumbai business and ex-pat elite are building their weekend residences in an area which would be the perfect domicile for the long-term business ex-pat resident, if it wasn’t for the pesky fact that the ferry doesn’t run three months a year during the monsoon. The properly rich, of course, have their own boats and so commute from here all year round. After a week in the glorious chaos of downtown Mumbai it was a pleasure to withdraw to the middle class enclave of

Mews Muse: (above) The Taj wellington Mews Luxury Residences represent the perfect way to blend the luxury of a hotel experience with the independence of your own apartment, so it’s no surprise that those who have found themselves in Mumbai for longer periods of time choose to make them a home from home

Bandra, home to the Taj Lands End. A fabulous hotel which could not be more different to the Taj Mahal Palace while it still manages, in an entirely modern setting, to include comparable levels of service and comfort. The business club on the top floor is a fantastic amenity for the visiting banker or hedge fund manger, providing, as it does, meeting facilities that seem luxuriously spacious in this crowded mega city. Bandra is referred to as ‘Queen of the Suburbs’, but this name loses something in translation. A short cab ride from the Taj Lands End are many of the city’s coolest restaurants and bars, and real estate prices that rival the highest in the city. And the hotel is admirably situated for that sad morning when it comes to the regretful time of catching a flight back home. Suketu Mehta termed Mumbai the ‘Maximum City’ in his 2004 bestseller. If you seek maximum excitement in your

business career, then it is only in a matter of time that you will find yourself drawn to live, or do business, in the richest city in India. H Four Seasons Mumbai,; Taj Mahal Palace, Taj Wellington Residences, Taj Mahal Lands End;

Flight Carrier Jet Airways A return economy fare from London Heathrow to Mumbai with Jet Airways costs from £608 per person, and in Premiere Class from £1,697 per person. Jet Airways, India’s premier airline, flies daily from London Heathrow to Delhi and twice daily to Mumbai. Flights are also available from Manchester and Birmingham via Brussels. For more information and to book please call 0808 101 1199 or visit




Wreaths worn as crowns are among the more recognizable symbols of ancient Greek and Roman civilizations. This gold wreath was purportedly recovered in modern day China, in a region which saw tremendous cross-cultural contact and exchange due to the trade routes of the famed Silk Road, and it is highly probable that this crown was used in another culture that was highly influenced by Rome and Greece. This magnificent crown is attributed to the 2nd century CE. ANALYTICAL PROCEDURES PERFORMED ON THIS ARTIFACT • Uranium, Thorium-Helium Dated

-Physics Institute at the University of Bern, Switzerland & Curt-Engelhorn-Zentrum Archaeometric in Manheim, Germany

• Tool Markings, Construction & Patination Studies -Independant Expert Analysis • XRF Analysis

-Expert Analysis Williamsburg, Virginia




855 - 266 - 9970 TKAA120-14-105636-9

Travel The JeT Business


Cool Your Jets Here Been to Hyde Park Corner recently? Your eyes aren’t mistaken. Martin Deeson steps inside one of the most curious showrooms in London – and into private jet heaven. Chocks away… You maY have had a strange experience recently while sitting in the inevitable traffic at Hyde Park Corner. And if you have, it was Steve Varsano’s fault. Stop at the traffic lights just across from Grosvenor Place, look straight ahead and you will see something that looks very much like an exact replica of the inside of an Airbus ACJ319. Well, you’re not mistaken, that’s exactly what it is. The Jet Business is “the world’s first street-level corporate aviation showroom for pre-owned and new business aircraft”. In other words it is a private jet shop, and whether you or your client are in the market for a Falcon 900EX for $15m, or an Airbus with bespoke interior for $80m, the Jet Business should be your first port of call. Now, I’ve never bought a private jet, but apparently the normal way is that you go to a broker and he shows you a lot of brochures and online pictures but unless you can be bothered to travel to where they make them you’re not going to have much chance to get the feel of the beast before you drop a very significant lump of cash. At The Jet Business you can try before you buy. Well, not literally, but you can get about as close as dammit without actually leaving the ground. An eight metre (yup, 26ft) video wall is used to display the real size plans of your plane’s interior. You can sit inside the body of the Airbus ACJ319 and discuss with Steve whether you want the marble surface on the coffee table or perhaps something in walnut veneer. Steve Varsano himself is an impressive character. What he doesn’t know about the private jet world isn’t worth knowing. And any fact he doesn’t have at the tip of his brain and ready to expound to waiting customers can be found on the database of the world’s business jets. He can call this up on the mega video screen in front of him, or the custom iPad app he has developed to help clients decide on the craft they need, and work out where in the world and for how much he can find you one.

You can sit inside the body of the Airbus ACJ319 and discuss with Steve whether you want the marble surface on the coffee table or perhaps something lighter in walnut veneer

Varsano says that the financial crisis has impacted on the ‘bottom end’ of the market where people are spending a million or so on a plane, but at his end of the game, where the super-mid size jets, the large-cabin and the ultra-long-range jets he specialises in change hands for north of $20m, there is no crisis. “There’s always somebody making money – I follow those with the money.” And, of course, the money has moved. Just 15 years ago, the vast majority of jets in the range in which Varsano specialises were from the US. Last year, 35% of sales of ultra-long-range business jets were to buyers from mainland China. Since the Jet Business opened a few months ago Varsano has sold planes to most continents and is taking a lot of orders from the CIS states. The Jet Business is the single most impressive showroom you will ever visit – next time you’re at those traffic lights you might want to jump out of the car and take a look. That is one parking ticket you will never regret. H For more information go to:




Extraordinary royal necklace featuring inlays of precious and semi-precious stones in granulated gold beads and pendant. Strung on original gold rope-style chain. This necklace is dated to the 3rd - 5th century CE or earlier. ANALYTICAL PROCEDURES PERFORMED ON THIS ARTIFACT • Uranium, Thorium, 4-Helium Dated -Physics Institute at the University of Bern, Switzerland & Curt-Engelhorn-Zentrum Archaeometric in Manheim, Germany

• Tool Markings, Construction & Patination Studies -Independent Expert Analysis

• Independent Gemological Analysis Williamsburg, Virginia • XRF Analysis -Expert Analysis Williamsburg, Virginia




855 - 266 - 9970 TKAA121-14-105636-10

REviEwS ThE MAy FAir


All The Fun of May Fair Whether you want to flop into a gigantic Vi-Sprung bed, or just wallow in a palatial bathroom, the May Fair hotel is the last word in luxury, says AntoniA Methuen…

TRUE COLOURS The ebony Suite, £2,200 per night

The May fair hoTel takes comfort seriously. Whether you are in one of its 19 studio rooms or a super-stylish signature suite, you will notice a sense of the lavish at every turn. Sumptuous textures and fabrics are combined with bold, jewel-like colours and eclectic accessories dotted throughout the hotel – no wonder it’s become a firm favourite during London Fashion Week. The impressive reception foyer, with its slick floors and conversation-piece furniture is an oasis from the hustle and bustle of Piccadilly, which is just a minute’s walk away. Understated but attentive staff welcome you to what will certainly

You have to give them lots of brownie points for a bathroom that is almost the same size as the bedroom; it’s so nice to get a great big marble edifice complete with super-sized bath

prove an exceptionally comfortable stay. Once in the rooms, the large Vi-Sprung beds are surrounded by huge headboard walls that offer an immediate softness and luxuriousness to this most iconic of hotels. Opened by George V in 1927, the hotel, with its central location, has consistently attracted A-listers through its doors, drawn to its under-the-radar location rather than some of its more noisy neighbours. Indeed, grab a pew in the May Fair Bar or the Quince restaurant, and don’t be surprised to see the odd pop star waltz past (oversized sunglasses on, of course) as the hotel is located close to many of Mayfair’s coolest nightclubs and bars. There are 406 bedrooms in the May Fair, ranging from superior and deluxe to studio rooms, signature suites and the amazing penthouse suite with its own wraparound roof terrace. You have always got to give a hotel lots of extra brownie points for providing a bathroom that is almost the same size as the bedroom it services – so easy to scrimp on, yet so lovely to get a great big marble edifice complete with super-sized bath and ample shower.

The May Fair has 13 suites, all with their own theme. There’s even a pink one for those who are, well, that way inclined. Our favourite has to be the new 110-sq ft Ebony Suite. Mainly because its theme seems to be toilets. Bear with us. The Toto facilities – from £9k remote-control loos that have heated seats and autodeodorisers to baths that glow different colours depending on your mood – are so impressive you’ll end up spending most of your time there. The basins even have a control knob that wouldn’t be out of place in a BMW 7-series; it glows blue for cold and darkens to flame red the hotter you turn it. Outside the bathroom there’s just about everything you’d expect. And with a TOTO Gyrostream shower with horizontal streams of pulsating water massage, the last thing you’re going to want to do is watch TV.

As well as Phillips digital systems as standard in the rooms, there are 24-hour music and video options, free wi-fi and office support. But if what you really need is some strawberries dipped in chocolate then fear not, as they come too. A spa, a gym and a casino all await you if the local shopping hasn’t completely exhausted you. Personally, I just disappeared into my very large bed and had the perfect night’s sleep. This one’s definitely a keeper. h Rooms from £300 per night. The May Fair Hotel, Stratton Street, Mayfair, London W1J 8LT. 020 7769 4041;




This stunning pectoral / necklace illustrates the “Tree of Life” in its fullest magnificence. Images of the Tree of Life were as varied as the many cultures which depicted it, appearing in the art of both settled and nomadic cultures throughout ancient Eurasia. From the pectoral of Ziwiye to the Sarmatian crown from Khokhlach, the Tree is instantly recognizable, revealing a common thread of belief across the ages. Attributed from the 2nd Century BCE - 2nd Century CE, this magnificent gold pectoral/necklace is bursting with blossoms, its bottom branches hung heavy with fanciful leaf-shaped pendants. Double layers of six-lobed petals frame semi-precious stones, while nearly one hundred stones in vibrant orange and turquoise accent more than thirty dangling pendants.

ANALYTICAL PROCEDURES PERFORMED ON THIS ARTIFACT • Uranium, Thorium-Helium Dated (results available late 2012) - (Physics Institute at the University of Bern, Switzerland & Curt-Engelhorn-Zentrum Archaeometric in Manheim, Germany)

• Tool Markings, Construction & Patination Studies - (Independant Expert Analysis) • XRF Analysis - (Expert Analysis Williamsburg, Virginia)




855 - 266 - 9970 TKAA122-14-105636-11



Precious Metal This year’s LAPADA Fair in Berkeley Square may well be hosting a fine collection of art, but it’s the unique craftsmanship of the exhibitors’ metal work that is really floating our boat, says JACK DONNe

Silver Galleon Langfords Ever wanted a 15ft silver-plated palmtree cake stand? No, probably not – but unlike one of Langfords’ other clients, we’re guessing you’re not a Middle Eastern princess. However, if you wanted to immortalise your pet, memorialise a racing horse, or even have a replica of your own yacht created, then Langfords is where you should turn. Langfords not only undertakes bespoke commissions but it is also one of the largest dealers in antique and contemporary silverware. At this year’s LAPADA Fair, it is exhibiting this grand Victorian galleon made by Berthold Muller in 1900. Talk about the sail of the century… 020 7242 5506 ;





Snake Bangles Moira of Bond Street From frog cocktail rings to dragonfly brooches, creature creations are a timeless trend in haute joaillerie. These elaborate snake bangles from the 19th Century were stunning fashion items at the time – and are now lasting collectors’ items. At this year’s LAPADA Fair, Moira of Bond Street will be exhibiting the collection, which includes an £18,000 blue enamel snake bracelet with cabochon-cut ruby eyes and a £15,500 red enamel bangle with guilloche enamel and gold-scroll edges. Now that’s our kind of snake charmers. 020 7629 0160;



AN AQUAMARINE STARBURST BROOCH BY VERDURA, 1948. The platinum brooch is set with an emerald cut aquamarine weighing approximately 30 carats, framed with brilliant-cut diamonds and surrounded by a starburst set with calibre-cut sapphire sprays. This substantial brooch was designed by Fulco di Verdura and produced by Verdura Paris in 1948. It was subsequently purchased by the Standard Oil heiress Millicent Rogers on one of her regular trips to the continent. For further details please contact us info@


ondon jewellers Lucas Rarities specialise in rare and exceptional pieces of period jewellery and objet d’art, with a particular emphasis on signed pieces from the Art Deco era to the 1970s. Tucked away in the heart of Mayfair, we are renowned for our expertise and ability to source individual pieces from treasured eras.

We value our unparalleled reputation for our tailored consultation service, which is specifically catered to clients wishing to begin or expand their collection. Our large range of outstanding diamonds, precious gemstones and natural pearls is also available for clients wishing to commission individual pieces, for which we have access to the best workshops in London.

See our latest acquisitions at

This Monumental 18ft wide Gothic Mahogany Breakfront Bookcase designed by Matthew Lansdale and made by Robert Nicholson and John Crossley of Manchester in 1816, was removed from Newbiggin Hall in Westmorland for the Townley Parker family bankers of Manchester.

This Monumental 18ft wide Gothic Mahogany Breakfront Bookcase designed by Matthew Lansdale and made by Robert Nicholson and John Crossley of Manchester in 1816, was removed from Newbiggin Hall in Westmorland for the Townley Parker family bankers of Manchester.

Dimensions H140 in This Monumental 18ft/ 355 CM / W wide 223Gothic inBookcase /Mahogany 566 cm / Breakfront D 29 in / designed 74 cmby Matthew Lansdale and made by Robert Nicholson and John Crossley of Manchester in 1816, was removed from Newbiggin Hall in Westmorland for the Townley Parker family bankers of Manchester.

Butchoff Antiques 154 Kensington Church Street, Dimensions H140 in / 355 London W8 4BN CM / W 223 in / 566 cm / Tel: 00 44 (0) 20 7221 8174 Fax: 44 D 2900 in / 74 cm (0) 20 7792 8923 Butchoff Antiques 154 Kensington Church Street, London W8 4BN Tel: 00 44 (0) 20 7221 8174 Fax: 00 44 (0) 20 7792 8923

Dimensions H140 in / 355 CM / W 223 in / 566 cm / D 29 in / 74 cm

Butchoff Antiques 154 Kensington Church Street, London W8 4BN Tel: 00 44 (0) 20 7221 8174 Fax: 00 44 (0) 20 7792 8923





n important early 19th Century Regency period rosewood and brass inlaid writing table in the manner of John Mclean. Supplier of furniture to the 5th Earl of Jersey’s Berkeley Square residence in 1807.

An important early 19th Century Regency period rosewood and brass inlaid writing n important early 19th Century Regency period A rosewood brass inlaid writing table in the table in the manner ofandJohn Mclean. manner of John Mclean. Supplier of furniture to the 5 Earl of Jersey’ Square residence in 1807. Supplier of furniture tos Berkeley the 5th Earl of at theresidence lapada art and antiques Jersey’s Berkeley Exhibiting Square infair,1807. th

Berkeley Square. 19TH – 23RD September 2012.

Exhibiting at the lapada art and antiques fair, Berkeley Square. 19TH – 23RD September 2012.


150-152 KENSINGTON CHURCH STREET, LONDON W8 4BN TEL: 0207 229 0373 FAX: 0207 792 3467

n important early 19th Century Regency period EMAIL: PSAND@ANTIQUEFURNITURE.NET rosewood and brass inlaid table in the 150-152 KENSINGTON CHURCH STREET, LONDON W8 4BN Exhibiting at the Lapada art writing and antiques Fair, TEL: 0207 229 0373 FAX: 0207 792 3467 manner of John Mclean. of furniture to the TH Supplier Rd Berkeley Square. 19 – 23 September 2012. EMAIL: PSAND@ANTIQUEFURNITURE.NET 5th Earl of Jersey’s Berkeley Square residence in 1807. Exhibiting at the lapada art and antiques fair, Berkeley Square. 19TH – 23RD September 2012.



Promotion LAPADA

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The inside Track LaPada’s PiPPa RobeRts explains why, when it comes to buying fine art and antiques, it really does help to have the right people on your side. experience, knowledge and quality all included…

Art: ‘La Danse du Printemps’ by Othello radou courtesy of John Adams Fine Art

In a recent newspaper interview, financial guru Alvin Hall confessed a penchant for “treats with emotional longevity”. At the Association of Art & Antiques Dealers (LAPADA) this is just the kind of treat that’s whole-heartedly embraced and, indeed, celebrated. And, as an Association, it does its utmost to ensure the public can find and rely on its trusted specialist dealers, whatever artistic ‘treat’ they have in mind. Since its inception in 1974, LAPADA’s membership has grown to more than 600, making it the largest association of professional art and antiques dealers in the UK. Membership is only open to those who meet the Association’s requirements as to experience, quality of stock and knowledge of their subject. Between them, they cover virtually every discipline from antiquities to contemporary fine art. Customers choose to buy from a LAPADA member because they benefit from the reassurance of its Code of Practice and their consumer rights are protected. Even more important is the personal attention to service and after-sales care provided by a dealer. Many of its members build up a trusted relationship with their clients and in the long-term will furnish a house from top to bottom, locate sought-after pieces to build a collection, advise on buying art and, ultimately, are often more than happy to buy back any previously sold items after many years if the client decides to down-

Membership is only open to those who meet the Association’s requirements as to experience, quality of stock and knowledge of their subject

size or change direction with a collection. In fact, at the forthcoming LAPADA Fair in Berkeley Square, The Taylor Gallery is offering a work by Sir Alfred Munnings that it sold to an American client more than 20 years ago. Jeremy Taylor says it is “the most important Munnings ever to pass through our gallery” and he is delighted to have it back amongst his stock. There are 59 LAPADA members based in Mayfair and St. James’s, most of whom run galleries that are open six days a week, offering a wealth of art and antiques. In 2009, LAPADA staged its first Fair in Berkeley Square, a flagship event that has quickly earned its reputation as one of the UK’s most important art and antiques fairs, visited by locals and international collectors. This year’s fair will be held from 19-23 September 2012 and will feature 95 exhibitors, all members of the Association.

The Fair has a particularly strong offering of pictures, from all periods: modern, contemporary and traditional. Works range from architectural or marine studies by European Old Masters to lithographs by Francis Bacon and Picasso to carefully curated works by leading artists of today. A superb variety of fine period jewellery spans rare Georgian gems and glamorous art deco designs much favoured by collectors. Clocks and timepieces on offer will include a special group of the earliest and rarest wristwatches from Rolex. More unusually, the visitor will find collectable and decorative aeronautica, military and maritime objects from model yachts to turbine engine tables. There’s something for everybody – and every room of your house. ■

For more info: 020 7823 3511; For a taster of what will be at the Fair, see p89.



MACKINNON fine fuRnituRe

AN eXCePTIONAl GeORGe I GIlT GeSSO CARD TABle. eNGlISH, CIRCA 1720 5 RydeR StReet, St. JameS’S, London SW1y 6Py Tel: 07725 332 665


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WaKeLIn & LInfIeLd

anThea a g anTIQUes

José BapTIsTa

Colonial architectural wardrobe

Diamond bracelet

Portuguese silver owl boceta

Wakelin & Linfield are West Sussexbased dealers in fine antique furniture and effects for town and country. Among its exhibits will be an impressive architectural two-part cupboard in rosewood. The front and side panels are heavily cushion moulded and the half columns veneered in ebony. 01403 700 004;

Anthea A G Antiques, based at Grays on Davies St, has earned a well-deserved reputation for exquisite Victorian and early 20th century jewellery. Pictured here is a platinum-set diamond bracelet containing 19cts of marquise-shaped diamonds of a high colour and quality. For info call 020 7493 7564 or email

Joining the LAPADA Fair from Lisbon, José Baptista has a beautiful selection of continental jewellery and silver, including some very early examples. This Portuguese silver boceta (a small box in which to keep personal objects) in the shape of an owl is from the 17th century. +351 213 859 068; email@josebaptista. com;


John Joseph

WIMpoLe anTIQUes

Claret jugs

Edwardian fringe necklace

Art Deco rings

Langfords is one of the largest dealers in antique and contemporary silverware, and a founding member of the London Silver Vaults. One of its specialities is antique wine-related silverware – from wine coasters and goblets to these rare animal-shaped claret jugs made by Alexander Crichton of London in 1881. 020 7242 6646;

John Joseph specialises in Victorian,

Wimpole Antiques has been trading for 35 years and specialises in wearable period jewellery from 1790-1970. All our pieces are checked for quality and authenticity so customers can buy with confidence. The rings illustrated are a sample from the Art Deco period, often made by famous jewellers. 020 7499 2889;

Edwardian, Art Deco and Art Nouveau jewellery, from earrings to bracelets, bangles to brooches, rings to necklaces, and everything in between – all with natural unheated stones. Pictured here is an elegant platinum-set Edwardian diamond necklace from 1910. 020 7629 1140;



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The colour of money Ian Goldbart,

managing Director of noble Investments (uK) Plc, explains how rare coins have become an intriguing asset class and why there couldn’t be a better time to put your cash into, well, cash‌



Promotion Noble INvestmeNts

As A collectible alternative investment, rare coins have typically been under promoted, under researched and under the radar. they appear to be decades behind the art market, where one evening of contemporary art sales at a large auction house produces more than the UK coin market turns over in a year, but things are beginning to change. Where we are seeing low interest rates, uncertainty and extreme volatility in the banking and traditional investment markets, savvy investors seem to be thinking outside the box in terms of diversification from the mainstream. With a history dating back over 2,500 years, the rare coin market is dominated by wealthy collectors and investors with a passion for collecting coins and with a long-term outlook for their portfolio. Distinct from the general coin market (where value derives partially from the weight of the precious metal in the coin) the rare coin market is driven by quality and rarity. Many european countries and the United states have mature collector bases but it is, unsurprisingly, the emerging markets of china, Russia and india that have seen the most rapid growth over the past few years. Where individuals and institutions are keen to repatriate their heritage, antiques and artefacts become hot property and prices soar. on 6 November 2008, the coin world’s answer to Damien Hirst’s art sale at sotheby’s saw a rare 1755 Russian 20-rouble gold coin sold in London for £1.55m, setting the new world record for a non-US coin. the hunt for top quality rarities drives the market and means that demand far outweighs supply in almost every area of collecting. A small shift away from traditional investments into collectibles can give rise to strong price movements. One significant advantage that coins have above other alternative investments

One significant advantage that coins have above other alternative investments is that, to some extent, the market is financially unsophisticated…

is that, to some extent, the market is financially unsophisticated. There is virtually no gearing or buying on margin and as a result no forced liquidations owing to unmet margin calls or collateralisation. For investors with a passion for history who are looking for a tangible, portable asset that has a finite supply, rare coins fit the bill perfectly. english coins, for example, have earned the right to be considered as a serious investment. statistics from the past 15 years show that rare english coins rose on average by 11% per annum. coins are bought and sold through a network of retail dealers and auctioneers, online and at specialist coin fairs. this global industry provides an honest, transparent marketplace where values are set by supply and demand and no one organisation dominates. some buyers look at the alternative market purely for financial gain, others because they have a genuine historical or artistic interest, but the majority will usually be a combination of the two. listed on the stock market in 2003, Noble Investments (UK) PLC works in an advisory capacity to help collectors and investors compile a portfolio of rare coins. its team of internationally acclaimed specialists covers all areas of the rare coin market and attends coin fairs and auctions to source items for their clients. themes for a portfolio or collection vary but common topics include artistic merit (most commonly seen in ancient Greek coinage,) country, particular historical era or geographical region. Many collectors will also chose to collect a series: one coin of each type and denomination for each year the coin was minted during the reign of a particular ruler. For new clients Noble’s advisers typically suggest looking at countries that have potential for further growth to cash in on potential future heritage repatriation. once a theme is chosen the client has as little or as much input into their portfolio as they desire. Noble trades in rare coins through its wholly-owned subsidiary A. H. Baldwin & sons ltd. Founded in 1872, baldwin’s has a long-standing history of serving

the rare coin market and is a registered member of the international Association of Professional Numismatists (IAPN); thus it guarantees the authenticity of any coin it sells. it proudly boasts the largest stock of coins and medals in the UK and holds between 15-18 prestigious auctions each year in london, New York and Hong Kong. earlier this year it handled the sale of a multi-million pound collection of ancient Greek coins in New York. the auction consisted of 642 lots that had been out of circulation for more than 40 years and sold for a cool US$25m. The leading lot, a gold Stater of Pantikapaion, dates back to 350-300BC and is one of the most sublimely crafted and beautiful of the ancient coin series. the outstanding artistic beauty of the coin, coupled with the fact that it was the only time in a generation that a piece of this type had been offered at auction, secured a worldrecord breaking price of US$3.25m for an ancient coin. For the coin world, the media frenzy that surrounded the sale was unparalleled and showed the interest that could be generated by what are, more recently, being considered as both rare pieces of history and miniature works of art. H A. H. Baldwin & Sons Ltd, 11 Adelphi Terrace, WC2N 6BJ; 020 7930 6879;



CGI image of One Commercial Street is indicative only

One Commercial Street is a new landmark development in a prime location between the financial heart of London and the dynamic city fringe.


+44 (0)20 3441 2001

Studios, one, two and three bedroom apartments starting from ÂŁ355,000* *Prices are correct at time of press

ProPerty Knightsbridge


Take It To The Bridge…

Knightsbridge, to be exact. Property expert RobeRt bailey looks back at the foundations of one of London’s most exclusive neighbourhoods – and asks is there still value to be found there? Like many peopLe of a certain age, my great aunt got to the point where she wanted to move to a quiet village, away from the hustle and bustle of her flat in Bloomsbury. She wanted a slower pace of life but still wanted to be close to her friends, neighbours and local shopkeepers. The village she chose? Knightsbridge. This was the 1950s and her move was not as crazy as it first appears (OK, maybe a little crazy). Knightsbridge was a far cry from the metropolitan centre it is now. It was a sedate and distinctly suburban area that was also considered to be the more affordable option compared to Belgravia or Mayfair. Most of the people who lived there were British and, like my aunt, were mature in years. This was certainly not a welcoming place for young families.

Cadogan Place, Montpelier Square and Egerton Gardens still boast grand homes while smaller streets such as Cadogan Sq hold their own charms

My aunt would scarcely recognise the place now, of course. In her day, the Cadogan Estate – which was, and still is, the principal landowner in the area – was run by the Seventh Earl Cadogan. While well respected, he had some rather interesting ideas. Many of the buildings and homes had fallen into disrepair during the War so the estate wanted to replace them with glass and concrete tower blocks and shopping centres. Fortunately, the plans were turned down by the planning authorities and it is only the Jumeirah Tower Hotel that stands testament to these wild ideas. By the time the eighth earl took over the estate, things began to be run on much more professional lines. The Cadogan Estate also set about making Sloane Street an international shopping destination that aimed to rival Bond Street in Mayfair. The estate worked hard to achieve an ambitious retail mix of designer brands and services and now boasts Louis Vuitton and Chanel, among others. Nightclubs, luxury hotels and some of the capital’s most fashionable restaurants began to call Knightsbridge home and foodies are spoilt for choice with One-o-One, Zuma and locals’ favourite, San Lorenzo, dotted right across the London suburb.

Slowly, the area gained parity with Belgravia and Mayfair and some might even argue that it exceeded these areas in some respects. When Bahraini-owned Crown Dilmun decided to create one of the world’s first developments for the super rich, it chose a former Harrods depository in Trevor Square and built apartments that truly set a new standard. Within a few short years, The Knightsbridge development was one of the first to introduce the services of a five-star hotel to residential apartments but it was One Hyde Park [pictured], by Candy & Candy, that really raised the bar. Which is not to say that some of the period homes are to be sniffed at. My aunt would be reassured to see Cadogan Place, Montpelier Square and Egerton Gardens still boasting grand homes while smaller streets such as Cheval Place and Trevor Square hold their own charms. The neighbourhood feel that so appealed to my aunt is still there, even if you have to search that little bit harder for it. Knightsbridge has definitely gone up in the world since my aunt lived there but its appeal has not faded. H Robert Bailey is an independent buying agent operating in prime central London. For more info: 020 7352 0899;



ProPerty Grosvenor House ApArtments


Get your Grosvenor on

Want to combine the comfort of a Mayfair residence with five-star hotel service? The Grosvenor House Apartments await, says Matt Huckle. Just don’t play with too many of the buttons…

Whenever I’m stayIng somewhere new I find myself doing a sweep of the place; opening every cupboard and pressing every button I can find. There is a vague idea in the back of my mind that I might find something secret and exciting but in reality the best I’ve come across is a hair dryer and a pair of free slippers. Of course, that’s all well and good when you’re on your own, or even with friends, but when you’re trying to impress a new girlfriend it can come across a little, well, odd. Aware of this I tweaked my habit into more of a ‘look at how amazing this place I’ve taken you is’ tour when we went to stay at The Grosvenor House Apartments by Jumeirah Living. It was all going so well until, exploring the bathroom, I pressed an unmarked button on the wall which, as it turned out, transformed the entire ceiling into a pouring shower. I was left soaking wet and my girlfriend, well, she wasn’t. A hidden ceiling shower is just one element of the extremely modern apartment. Consoles in each room control everything from opening and closing the blinds to choosing which lighting setup you want. Hear a knock at the door? Looking through a peephole is so analogue, instead join the digital age and find out who it is by checking the video monitor instead. But a slick luxury apartment is nothing new and while The Grosvenor House Apartments are certainly no slouch in that department, it’s not the main reason you’ll be ringing up to book. They’re actually designed with much longer stays in mind and are geared towards making you feel at home over an extended period. A full-size fridge and oven mean you won’t have to rely on room service or eating out when it comes to dinner. And the living room has clearly been designed as somewhere you could actually spend some time relaxing. There is even a whisky decanter and a surprisingly good glassware collection to ensure those quiet evenings in are enjoyed in style.



Hear a knock at the door? Looking through a peephole is so analogue. Instead, why not join the digital age and find out who’s at the door by checking your in-room video monitor instead

Of course, the hotel service is there if you do get bored of looking after yourself. The spectacular atrium [pictured above] provides an amazing dining experience with breakfasts especially worth getting up for. But before I enjoyed any of this I had to find a way to quickly dry my shirt. Where’s that hair dryer when you need it? H Prices range from £450 a night (studio) up to £11,000 a night (five-bed penthouse).

01 865 515919

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Planning permission for 2 new homes just under 8000 sq ft each Land from 3 to 7 acres - you choose

£2.5 million per plot In a stunning Sylvan-setting on the doorstep of one of the

country’s few 54 hole championship standard golf courses. Space is the newest luxury and this inspirational scheme, created under the guidance of Award winning developer Andrew Herring, is a fusion of both.



The opportunity to build to your own specification with your chosen team or a bespoke service can be offered to provide the finished product. Oxford - 8.4 miles Didcot Parkway Mainline Station 8.9 mile Abingdon Prep - across the field! PROPERTY SEARCH LETTINGS A ONCE IN A LIFETIME OPPORTUNITY

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Just 7, large two bedroom apartments remain at this stunning coastal development Each exceptionally stylish apartment offers luxury living with a sophisticated lifestyle. Complete with secure basement parking and lift to all floors. Prices from £800,000 marketing suite & show aPartment oPen friday, saturday & sunday 10am–5Pm entrance and access via Queens road

Come and take a closer look. Call us on 0845 899 0604 or visit

g S

*Computer Generated Image of a residence

cotland’s best kept secret Residential Plots for Sale

gWest will be an exclusive new private gated estate where residents and guests can expect unsurpassed service and facilities.

The resort will include an iconic clubhouse and members-only golf club, ultra-luxury hotel, spa, concierge and extensive leisure facilities.

Next to Gleneagles, less than an hour from Edinburgh and Glasgow, this 620-acre estate includes one of Scotland’s finest golf courses, which has only ever been played by invitation.

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Tel: +44 (0)131 220 4160

gWest, Perthshire, Scotland.

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Go Figure… Davide Quayola and Memo Akten’s work may look like an abstract tangle, but it’s actually an animated representation of world-class athletes in motion. Part of Forms, an interactive 3D animation project inspired by, among others, photographer Eadweard Muybridge (who proved that a trotting horse lifts all of its hooves off the ground simultaneously), it was created using footage of Commonwealth Games competitors, sophisticated software and 3D technology – plus a load of collaborators. To see the art in motion – trust us, you’ll want to – please visit Forms was created by a whole team: Quayola & Memo Akten (artists), Nexus Interactive Arts (production company), Beccy McCray (producer), Jo Bierton (production manager), Matthias Kispert (sound design), Maxime Causeret (Houdini developer), Raffael F J Ziegler (3D animator), Eoin Coughlan, Katie Parnell, and Mark Davies (3D tracking).

Art Movement Davide Quayola and Memo Atken’s chaotic creations use footage of Commonwealth athletes in motion to build strange and beautiful 3D forms. Alix Buscovic untangles the wires to find out how they’ve done it




N A Q S H HOMAGE TO PICASSO 28 June - 21 July 2012


Hedge - 21 - The Midas Formula