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ISSN 1757-7381 1757-7381 ISSN

ISSUE . 34

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H E S HORT RU N, TH E MAR KET I S A VOTI NG MACH I N E. I N TH E LONG RU N, IT’S A WE IG H I NG MA

R KET I S A VOTI NG MACH I N E. I N TH E LONG RU N, IT’S A WE IG H I NG MACH I N E. I N TH E S HORT R H I N E. I N TH E LONG RU N, IT’S A WE IG H I NG MACH I N E. I N TH E S HORT RU N, TH E MAR KET I S A

N, IT’S A WE IG H I NG MACH I N E. I N TH E S HORT RU N, TH E MAR KET I S A VOTI NG MACH I N E. I N TH

H I N E. I N TH E S HORT RU N, TH E MAR KET I S A VOTI NG MACH I N E. I N TH E LONG RU N, IT’S A WE I

, TH E MAR KET I S A VOTI NG MACH I N E. I N TH E LONG RU N, IT’S A WE IG H I NG MACH I N E. I N TH E

TI NG MACH I N E. I N TH E LONG RU N, IT’S A WE IG H I NG MACH I N E. I N TH E S HORT RU N, TH E MAR

LONG RU N, IT’S A WE IG H I NG MACH I N E. I N TH E S HORT RU N, TH E MAR KET I S A VOTI NG MACH

G H I NG MACH I N E. I N TH E S HORT RU N, TH E MAR KET I S A VOTI NG MACH I N E. I N TH E LONG RU N

E S HORT RU N, TH E MAR KET I S A VOTI NG MACH I N E. I N TH E LONG RU N, IT’S A WE IG H I NG MAC

R KET I S A VOTI NG MACH I N E. I N TH E LONG RU N, IT’S A WE IG H I NG MACH I N E. I N TH E S HORT R H I N E. I N TH E LONG RU N, IT’S A WE IG H I NG MACH I N E. I N TH E S HORT RU N, TH E MAR KET I S A

N, IT’S A WE IG H I NG MACH I N E. I N TH E S HORT RU N, TH E MAR KET I S A VOTI NG MACH I N E. I N TH

H I N E. I N TH E S HORT RU N, TH E MAR KET I S A VOTI NG MACH I N E. I N TH E LONG RU N, IT’S A WE I

, TH E MAR KET I S A VOTI NG MACH I N E. I N TH E LONG RU N, IT’S A WE IG H I NG MACH I N E. I N TH E

TI NG MACH I N E. I N TH E LONG RU N, IT’S A WE IG H I NG MACH I N E. I N TH E S HORT RU N, TH E MAR

LONG RU N, IT’S A WE IG H I NG MACH I N E. I N TH E S HORT RU N, TH E MAR KET I S A VOTI NG MACH

G H I NG MACH I N E. I N TH E S HORT RU N, TH E MAR KET I S A VOTI NG MACH I N E. I N TH E LONG RU N

E S HORT RU N, TH E MAR KET I S A VOTI NG MACH I N E. I N TH E LONG RU N, IT’S A WE IG H I NG MAC

R KET I S A VOTI NG MACH I N E. I N TH E LONG RU N, IT’S A WE IG H I NG MACH I N E. I N TH E S HORT R H I N E. I N TH E LONG RU N, IT’S A WE IG H I NG MACH I N E. I N TH E S HORT RU N, TH E MAR KET I S A

N, IT’S A WE IG H I NG MACH I N E. I N TH E S HORT RU N, TH E MAR KET I S A VOTI NG MACH I N E. I N TH

H I N E. I N TH E S HORT RU N, TH E MAR KET I S A VOTI NG MACH I N E. I N TH E LONG RU N, IT’S A WE I

, TH E MAR KET I S A VOTI NG MACH I N E. I N TH E LONG RU N, IT’S A WE IG H I NG MACH I N E. I N TH E

TI NG MACH I N E. I N TH E LONG RU N, IT’S A WE IG H I NG MACH I N E. I N TH E S HORT RU N, TH E MAR

LONG RU N, IT’S A WE IG H I NG MACH I N E. I N TH E S HORT RU N, TH E MAR KET I S A VOTI NG MACH

G H I NG MACH I N E. I N TH E S HORT RU N, TH E MAR KET I S A VOTI NG MACH I N E. I N TH E LONG RU N

E S HORT RU N, TH E MAR KET I S A VOTI NG MACH I N E. I N TH E LONG RU N, IT’S A WE IG H I NG MAC

MAR KET I S A VOTI NG MACH I N E. I N TH E LONG RU N, IT’S A WE IG H I NG MA

– BENJAMIN GRAHAM, THE FATHER OF VALUE INVESTING


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

E DI TOR'S

A C H I N E . I N T H E S HEditorial ORT RU N, TH E

L ET T E R

EDITOR

R U N , T H E M A R K E T Mark I SHedley A VOTI NG DEPUTY EDITOR

V O T I N G M A C H I N E Jon . Hawkins I N TH E LONG ASIA EDITOR

H E L O N G R U N , I T ’ SCathyAAdams WEIGHING SUB EDITOR

Clare Vooght

W

hen someone from Goldman Sachs says something – says anything – I tend Aby Dunsby E S H O R T R U N EDITORIAL , T H EASSISTANT MARKET IS A to listen. In fact, the whole industry Michael Gibson tends to listen. So when HEDGE was R KET I S A VOTI NG M ACHINE. IN Design invited to talk to the woman at the head of International ART DIRECTOR H I N E . I N T H E L OMatthew N GHasteley R U N , I T ’ S A Goldman Sachs Asset Management, we were all ears. DEPUTY ART DIRECTOR Especially when we learnt her arm of the business has Phillips N , I T ’ S A W E I G H I N GLucy M ACHINE. IN around $1.18 trillion in its custody. DESIGNER Abi Robinson You don’t hear many people worrying about the CH I N E. I N TH E S HORT RU N, TH E JUNIOR DESIGNER succession of the hedge fund business. Indeed, even the Bianca Stewart R U N , T H E M A R K E T I S A V O T I N G top fund managers are often, and understandably, more Contributors focussed on performance than legacy. But it’s people like Simon Barr, John Burrell, Chris VOTI NG MA CH I N E. I N TH E LONG Dennistoun, Max Girardo, Jessica Ms Patel who are looking at the bigger picture – and Furseth, Keith Heddle, Edward H E L O N G R UHorswell, N , DrI Glenn T ’ SLacki,ABruce W E I G H I N G the industry is, and will be, all the better for it. [p52]

I G H I N G M A C H I N STAFF E . IWRITER N TH E S HORT

Marchant, Siobhan McFadyen, Melissa Scallan, Tom Stewart,

I G H I N G M A C HHannah I N ESummers, . I NRobinT H E S H O R T Someone who also strongly believes in the Swithinbank, Safi Thind, Charles

E S H O R T R U N , T H E M A R K E T I S Aimportance of succession is Aref Karim, founder of Wallrock, Thomas Woodham-Smith

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Quality Capital Management [p48]. His company

SALES R KET I S A VOTI N G DIRECTORS M A C H I N E . I N celebrates its 20th anniversary this year – and it’s fair

Michael Berrett, Alex Watson

to say Karim is one of the game’s veterans. When asked why he was still running the business Freddie Dunbar, Louis Sidey, after all this time, his answer was revealing: “It’s because Campbell Tibbits, N, IT’S A WEIGHIN G M ACHINE. IN ACCOUNT MANAGERS I’m very passionate about it, and more importantly Richard Baker, Jason Lyon, C H I N E . I N T H EWill SPreston, H OMark RT R U N , T H E it’s because there’s almost a philosophical and societal Sloyan purpose behind it.” After struggling through the recent R U N , T H E M A R K E T Printing I S A VOTI NG Blackmore years of low-volatility, Karim has created a leaner, V O T I N G M A C H I N E . I N T H E L O N Gstronger approach with revamped and more resilient products. He believes 2015 is a year of opportunity. H E L O N G R U N , I T ’ S A W E I G H I N G Let’s hope, for all our sakes, he’s right. PUBLISHED BY What are your thoughts on the next steps for Square Up Media IGHING MACH I N . I NStreetT H E S H O Rthe T industry? I’d love to hear them. Drop me a line. 4 Tun Yard,EPeardon

H I N E . I N TSENIOR H E ACCOUNT L O NMANAGERS G RUN, IT’S A

London SW8 3HT

20 7819 9999 E S H O R T R U N , +44 Tsquareupmedia.com H(0) E MARKET IS A COMMERCIAL DIRECTOR

Gluckman R K E T I S A V O T I N GMikeM ACHINE. IN

SIOBHAN McFADYEN Siobhan McFadyen began her career on her local newspaper in Scotland at the age of 17, and has gone on to work in New York, London and Dubai. She speaks to the most powerful lady in Goldman Sachs Asset Management. [p52]

JOHN BURRELL John Burrell is a senior consultant at leading law firm Gordon Dadds. He advises on complex issues arising from the breakdown of relationships as well as their formation. This issue he explains why London is no longer the divorce capital of the world. [p30]

MAX GIRARDO Max Girardo began his career in the vintage cars industry, working in Monaco and Geneva before becoming managing director of RM Europe. He also takes part in judging and racing events around Europe. He explains how to invest in a classic car. [p58]

LEAD DEVELOPER

H I N E . I N T H E L O N AJ GCerqueti RUN, IT’S A FRONT END DEVELOPER

Miquel Tubert

N , I T ’ S A W E I G HCOMMUNICATIONS ING MACHINE. IN Mark Hedley - Editor Krista Faist, Emily Buck

C H I N E . I N T H E S H OACCOUNTS RT RU N, TH E

ACHINE.

Taylor Haynes, Caroline Walker

@ mark@squareupmedia.com @mghedley

FINANCIAL DIRECTOR

Steve Cole CEO

Tim Slee CHAIRMAN

Tom Kelly OBE

© Square Up Media Limited 2015. 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.

DR GLENN LACKI Classical archaeologist, Dr Glenn Lacki has turned his expertise in the glories of ancient Greece and Rome to dealing best-in-class Greek art, as the director of Mayfairbased Kallos Gallery. This issue, he talks us through investing in arms and armour. [p61]

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ISSUE 34

Contents INDUSTRY • LUXURY • OPINION

52

26

S HO RT S 20 22 25 26 29 33 35

Portrait of a Hedgie My Mayfair Form Chaser Hedge Heartland Columns On the Market Picture This

F E AT U R E S 44

A man of the people

Nicolas Campiche, CEO of Pictet Alternative Advisors, on how to choose the right people for the ultimate fund of hedge funds.

48

All systems go

Aref Karim, founder and CEO of Quality Capital Management, on 20 years in the business – and his continued faith in the power of the system.

52

The Goldman touch

Sheila Patel, the most powerful woman in Goldman Sachs Asset Management, on strategy, the US bounceback, and, er, fly fishing.

58

There’s treasure everywhere

Our guide to some of the most exciting and esoteric treasure asset classes out there, finishing up with a masterclass in art.

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58

All the fun of the Fair

We meet Nazy Vassegh, CEO of London’s most important art, design and antiques fair.

R EWA R DS 85 86 97 101 102 114 116

Watches Motors Bikes Yachts Travel Food & Drink Property

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48


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SHORTS

Despite##their Pullage, quote, Bonalumi’s 3 decks and designs a snarl, lookexplains surprisingly the XFR’s modern. chief Imagine technician. whatIthesounds could have like adone choirwith of angels a 3D –printer HEADLINE GOES FORMHERE CHASER IN TITLE . 025 CASE . P16 PORTRAIT OF A HEDGIE . 020 |FIRST MY MAYFAIR STORY TITLE . 022. 00# | FORM | SECOND CHASER STORY . 025 TITLE | HEDGE . 00# | HEARTLAND THIRD STORY. 026 TITLE| .COLUMNS 00# | FOURTH . 029STORY | ON TITLE THE MARKET . 00# . 033 | PICTURE THIS . 035


PORTRAIT PETER LAURELLI

SHORTS

WHAT’S YOUR BACKGROUND?

My start in the financial services industry was in a research role and I picked up a diverse set of capital markets experience in both sales and fixed-income trading before returning to focus on research. For the past ten years, I have been in the financial data and analytics world. Having access to an exceptionally large amount of unique data on both alternative and traditional asset managers has been a luxury that allows me and my team to satisfy our intellectual curiosity and provide an interesting perspective on this industry to both our clients and the media. HOW DOES eVESTMENT’S WORK INFORM ITS HEDGE FUND CLIENTS?

eVestment’s alternatives data and analytics platform serves hedge funds in a couple of distinct ways. First, the platform acts as a virtual ‘shop window’ for our institutional investor and consultant client-base to assess and select hedge fund managers for potential investment. Hedge fund managers have embraced the increased level of transparency our institutional clients demand owing to the size of the investments they make and the long-term nature of their allocations. Hedge funds also use our platform for peer comparison and marketing purposes, and to access unique intelligence from our Advantage tool, which allows for insight into how they are being found, viewed and compared on our platform.

WHAT ARE THE PLANS FOR eVESTMENT?

Our company’s primary goal is to provide real business solutions to the institutional investment community. We’re continuing to combine new technology with our massive datasets to bring usable intelligence to hedge funds, traditional asset managers and the institutional investors and consultants who invest in them. eVestment’s coverage of the traditional and hedge fund universe is already the institutional standard, but in 2015 we will be focusing on bringing in additional asset classes, such as private equity data. The more we are integrated into our clients’ processes – from manager selection, to improving effectiveness of sales and providing critical intelligence for business development – the more effective we can be in helping our clients make those all-important important decisions. H For more information, see evestment.com

G O I N G L O N G

CERAMIC ART LONDON

KATHRYN F STALEY, THE ART OF SHORT SELLING

Peter Laurelli, Vice President & Head of Research, eVestment

Bringing together more than 80 of the world’s most exciting ceramicists – including Isobel Egan, whose ‘Jounrey Within’ is pictured – Ceramic Art London is on from 17-19 April, Royal College of Art; ceramics.org.uk

“THERE IS A CERTAIN MEASURE OF THE MORALIST IN SHORT-SELLERS. THEY ENJOY REVEALING THE EMPEROR WITHOUT HIS CLOTHES”

PORTRAIT OF A HEDGIE


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SHORTS

SHORTS M Y

M A Y F A I R

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# 2 7

Bocconcino In 2015, when London restaurants are increasingly bent on filling your table with small sharing plates, or sticking to just one dish (quite literally, in some cases) and serving it with a ‘like it or lump it’ attitude, it’s comforting to know that Mayfair is still the place to go for a three-course blowout, with no pomp or ceremony spared. Case in point: Berkeley St’s Bocconcino. A far cry from the rough-and-ready pizzerias down the road in Soho, it offers an expansive menu in an even more expansive ballroom setting. It may label itself as a pizzeria, but you’ll find classic fare from all corners of Italy here: to give you an idea of the scope, the antipasti section of the menu lists 15 dishes, and there’s even a dedicated breakfast menu served from 8am-11am. We start with a board of cured meats and a focaccia with rosemary, as well as an excellent salmon tartare, served with a flourish in the form of avocado with anchovies and capers and a quail’s egg served in a half-shell. I know we’re not

It’s comforting to know that Mayfair is still the place to go for a three-course blowout, with no pomp and ceremony spared 22

HEDGE

in sharing-plate territory, but everything demands to be tasted, so we ask for a couple of side plates and ‘Soho it up’. With this being a pizzeria at least in name, I decide to test-drive the pizza menu. I wish I had room for the works – antipasti, primi piatti, secondi and dessert – but my natural lack of an Italian capacity for food means one has to be sacrificed. Our attentive waitress recommends the pizza Valtellina, which comes topped with bresaola (air-dried, cured beef from the eponymous Alpine region in Lombardy) and rocket. My guest opts for wild boar ragu with tagliatelle – a decision that causes me an acute sense of food envy before the order’s even been finished (although should I want a fully-formed idea of the menu I already decided I would have to come back three or four times). I, again, try some, and it’s everything I want it to be – rich, gamey, full-bodied, and an excellent accompaniment to a cold February night in London. It’s a dish that insists on being eaten with wine – in this case the house red, a very drinkable Rosso Veneto IGT 2013. An Italian feast wouldn’t be complete without dessert, and I relish the chance to see Bocconcino’s take on an all-time favourite – rich, indulgent tiramisu hits all the right marks, and leaves me thankful that there’s still plenty of room in London for old-world continental dining. H – MG Bocconcino, 19 Berkeley Street, W1J 8ED; 020 7499 4510; bocconcinorestaurant.co.uk

Subscribe If you’re involved in the investment management industry and work in London, you may be entitled to a free subscription to HEDGE. Simply email a request to: info@squareupmedia.com


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SCULPTURE AGOSTINO BONALUMI

SHORTS

SHORTS

PHOTOGRAPH: Agostino Bonalumi, Bronzo, 1969-2007, cast bronze. Courtesy Archivio Bonalumi and Mazzoleni London

FORM CHASER

Curves in all the right places London’s Italian post-war art explosion shows no sign of abating – last year’s record-breaking Italian art sales at Frieze included Piero Manzoni’s Achrome, a postwar work which sold for a record £12.6m. Retrospectives have followed, celebrating Italian artists including Mario Merz, Paolo Scheggi, and, most recently, Agostino Bonalumi, whose work is pictured.

The late abstract artist from Milan was a pivotal figure in post-war Italian abstraction, and was renowned for reinventing painting by blurring the boundaries between the two and threedimensional. His works often investigate the interplay between form and shadow. A concern with space is central to his sculptural works in particular, and the artist experimented with materials including

fibreglass, coloured ceramic and metal to create imposing, large-scale structures that give a strong sense of movement. Despite their age, Bonalumi’s designs look modern: the creative curves of Bronzo [pictured] make up an enchanting form that reflects light in a way that was impressively progressive for its time. Imagine what he would have done with a 3D printer… H For more information, visit mazzoleniart.com

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HEDGE HIGHLIGHTS MAYFAIR

SHORTS

SHORTS HEDGE HEARTLAND

Turning a negative into a positive Remember a world before the digital photography boom, before the birth of Instagram and the selfie stick? Finnish photographer Niko Luoma’s works seem an age away from now. Not only are the shots taken with an analogue camera (gasp), but rather than featuring styled objects or slebs, his subject is decidedly abstract. Using a traditional film camera, Luoma exposes a negative to single lines of light hundreds, and even thousands of times. The results are beautiful images that visualise the process of creating a photograph. The paradox with Luoma’s work is that although he controls the first stage of his creations with scientific precision and order, the results are left to the inner workings of the camera – and the photographs that emerge, such as ‘158th day, 2007’ [pictured] are unexpected every time. To see more of Niko Luoma’s work, speak to the team at Atlas Gallery, 49 Dorset Street, W1; 020 7224 4192; atlasgallery.com

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Liquid steel Bulgarian artist Rado Kirov’s mirrorpolished stainless steel artworks have a playful quality that delights and intrigues in equal measure. The Cape Town-based designer uses a unique technique to manipulate a sheet of stainless steel by hand, giving metal a rippled surface that looks as though it is melting or moving, to dynamically reflect its surroundings. To see more of his work, speak to Albemarle Gallery, 49 Albemarle Street, W1S; albemarlegallery.com

Wine in the sunshine For those who love to consume plenty of wine while they travel, luxury holiday company Brown + Hudson has partnered with Mayfair’s Hedonism Wines to create bespoke wine and culture–focused journeys. From a tour of Rioja’s vineyards, to private dining and wine tasting within the walls of Alcatraz, Hedonism’s experts will provide top suggestions based on your tastes. H For more information, see brownandhudson.com


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W W W . V A R D A G S . C O M


RARE BOOKS CASINO ROYALE

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...

Casino Banking Bond-Style CHRIS DENNISTOUN explains why Ian Fleming would have been much better off if he’d kept to banking – and why literature is all the richer because he didn’t

Desperate in his need for money, Ian Fleming abandoned a journalistic career with Reuters, and went to work for Cull & Co, a merchant bank

unburdened by excessive hours. You could enjoy superb lunches with the best claret from your private cellar, no capital gains tax, and to cap it off, when you’d made the grade, trouser a large partner’s bonus. But he blew it big time. He was bored. In a sense he was the prep school boy who’d outgrown his surroundings. He was looking for action, real action which he – and Bond – found on the green baize: “Bond had always been a gambler. He loved the dry riffle of the cards and the constant unemphatic drama of the quiet figures round the green tables… He liked being an actor or spectator, and from his chair to take part in other men’s dramas or decisions until it came to his own turn to say that vital ‘yes’ or ‘no’ generally a fifty-fifty chance…” Saved or doomed, it was a binary bet. However, Fleming’s loss is our gain, for if had he made the millions he had intended and got sucked into the City, he might never have created James Bond. Secondly, he might have been side tracked and given up building one of the great rare book collections. This was the investment he really enjoyed – and took pride in. With Percy Muir, he decided to create a collection of first editions of the great books from every century which reflect the triumphs of Western cultural thought in every form of human endeavour. It includes first editions of Copernicus, Freud, Galileo, Descartes, Cervantes, Marx, Adam Smith, Winston Churchill and more. Fleming loaned 44 titles from his private collection for an exhibition entitled, Printing And The Mind Of Man, which was held in Earl’s Court in July 1963. It was a landmark; most collectors and dealers today still use the book that resulted from it as the standard reference work. As for his own books, copies of a first edition Casino Royale with the first issue dust wrapper in very good condition have fetched as much as £24,000 in auction. He would have been amazed, for it has outpaced many of the more serious works he collected. None could have predicted Bond’s staying power in the popular imagination, his constant appeal, or for that matter Casino Royale’s extraordinary price tag – least of all, Ian Fleming. H

SHORTS

“ THE SCENT AND sweat of a casino are nauseating at three o’clock in the morning…” So begins one of the most celebrated sentences in English popular literature, the opening of Casino Royale. Gambling – particularly baccarat, roulette and bridge – is one of Bond’s favourite pastimes, and a major source of income. There is no foe that cannot be trounced, and even though he’s wagering on a fifty-fifty proposition, his mathematical genius always surmounts any difficulty: “Bond had spent the last afternoons and most of the nights at the casino, playing complicated progression systems on the even chances at roulette”. Of course, any habitué of the tables knows this is rubbish. If it’s just a brief affair, you might sometimes succeed, but too much acquaintance will guarantee the short walk down Carey Street, and subsequent oblivion. No system has been devised for beating the casino at regular games of chance until Edward Thorp began card counting at blackjack. It is somewhat surprising that Fleming made so much of gambling in the novels. Especially as on his doorstep he had another form of gambling he knew only too intimately: the stock market, and also London’s great commodity markets, where the agriculturals and metals were widely traded. In fact, both these might have made fertile settings for Bond’s exploits,

and could have provided interesting backgrounds for the later plots. The fly in the ointment is Fleming himself. Desperate in his need for money, he abandoned a promising journalistic career with Reuters, and went to work for Cull & Co, a merchant bank. Then, in 1935 he moved to Rowe & Pitman, one of the great blue chip brokers. Hugh Smith, a relation of the senior partner, offered him the chance of writing the monthly investment briefing. Perversely (in true Fleming style), instead of recommending War Loan, and a basket of blue chips, he set out to prove that foreign railways and obscure overseas bonds offered better returns. They didn’t. Then he was asked to write a history of Rowe & Pitman, which fared no better. It was considered too parochial, concentrating on the history of the Pitman family. He wasn’t a team player. He was considered to have “too many outside interests”. These were various: women foremost, golf, literature including rare books, and being in the best society, where he was known as ‘glamour boy’. In this era he had a chance to make a fortune quickly, and this was his stated aim. There were no insider dealing regulations and no rules about front running, (in fact if your broker didn’t have a few on board, why should he captain the team?). You could ‘cash and new’ for many two week accounts, going long or short. Furthermore if you were as professionally and socially as well connected as Fleming, you had the opportunity to receive any amount of ‘quality information’ from the most recondite sources. To many today it might seem a nirvana, a club you’d bite your arm off to join. Your career was

For rare editions of Casino Royale, see Shapero Rare Books, 32 Saint George St, W1S; shapero.com

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LAW DIVORCE

SHORTS

...

Time to Say Bye to Splitsville JOHN BURRELL, from leading

law firm Gordon Dadds, explains how London may have been the world’s divorce capital, but that ship may be about to sail for good

SHORTS

THE RECENT RECORD-BREAKING payout to Mrs Cooper-Hohn, at a staggering £337m, has once again put the London divorce courts in the headlines. For many years, London has been the divorce venue of choice, but not always for the same reason. Initially it favoured the payer, because of the meanness of the awards. In 1996, Robert Dart of Michigan, and the Dart Styrofoam cup empire, came to live in England just long enough to commence divorce proceedings in London because that would ensure a comparatively minor payment to his wife compared to what a Michigan divorce would cost. She was awarded just £9m by the English court and not the $300m she could have expected from a Michigan court. Some years later, the English courts completely changed the rules. Instead of thinking small, English jurisprudence totally reversed its thinking and decided that in nearly all divorces, a fair result would demand an equal division of all the assets built up during a marriage. Many jurisdictions exclude assets which were owned by one party before the marriage and also exclude assets inherited by one party before or during the marriage. Not necessarily so in England. The English court, unlike so many continental and US models, has a complete discretion to award whatever “in all the circumstances” appears to be fair and just.

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Pre-existing wealth may be a factor to reduce what is ordered and wealth inherited during the marriage may also be excluded. However, there is no automatic exclusion of such assets and the London court may conclude that the way that such assets were treated by the married couple, when they were together, should result in those too being shared. CONTRACTS FOR DIFFERENCE

Although the enforceability of prenuptial agreements by the English court is now firmly established, England seems to insist that their validity is dependent upon English rules about separate legal advice and arm’s length negotiation being complied with after first exchanging full disclosure about each other’s financial resources. Other jurisdictions, particularly many in Western Europe, have had pre-marital contracts as a standard feature of their social framework for very many years. They do not have the same strict requirements that the English courts have made up. The result still can be that foreign nationals – believing that the financial terms to govern any divorce were firmly agreed at the time of the marriage under the law of their joint birth and joint citizenship – are surprised to be told that because they did not comply with English court rules, which did not even exist at the time of their marriage, that their marriage contract does not govern things. Foreign nationals may discover that because they happen to have been resident in England for no more than six months, that their marriage contract is in effect

Parties in England are now told that if they wish to press their claims with extreme detail and thoroughness they may be turned away from the judicial system altogether

set aside, and English rules are imposed resulting in a far more generous award for the claimant than they could ever otherwise have expected. CAPITAL APPEAL

So, London retains its attraction as holding out the prospect of as large an award as is made in any jurisdiction and considerably larger than in many and well beyond that which in their original countries many foreign parties would ever have expected to be the case. It may however be that although the substantive law in England will not change, that the practice will do. We have recently seen in the CooperHohn proceedings an award of nearly £350m. What the judgment does not tell us is the amount of legal fees incurred to get to the rather predictable result – almost exactly the same one-third percentage split as awarded to the wife of Mr Charman, the saviour of Lloyds of London. We do know that the Cooper-Hohn case occupied many weeks of a judge’s time. In the same week as the judgment there, other senior judges began to make it clear that no longer will the courts permit massive amounts of judicial time to be spent in considering thousands of pages of material and hearing extensive expert evidence in order to determine how many tens, or indeed hundreds, of millions of pounds the award should be. Parties in England are now told that if they wish to press their claims with the detail and thoroughness which has become the established pre-cursor to very substantial awards, that they may be turned away from the judicial system altogether and instead have to employ an arbitrator who will make an award which will be unappealable, however wrong. It may therefore be that 2015 is the dawning of a new era in London’s previous divorce capital status and that the closing of the court’s doors, which previously had been open to welcome large litigation will mean that the enthusiasm for London wains and diminishes. H John Burrell is a senior consultant in the family department at leading law firm Gordon Dadds. He advises on complex issues arising from the breakdown and formation of relationships, including pre- and post-nuptial agreements.


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HEDGE HOTLIST ON THE MARKET

SHORTS

H E D G E

H O T L I S T

OUR TOP WATCHES FROM SIHH 2015

SHORTS

Roger Dubuis The skeletonised movement of the new Excalibur Automatic Skeleton is whittled down to its bare architectural necessities, exposing the inner workings (and your wrist) for the world to see.

Panerai In 1943, Panerai created a watch called the Mare Nostrum for Italian naval officers, and now it’s back with only 150 being offered for sale. The huge, 52mm titanium case houses a handwound chronograph.

O N

T H E

Lange & Söhne With its steamage looks and ‘mechanical-digital’ display, Lange & Söhne’s Zeitwerk has a decimal minute repeater. Under the surface lies a complex 771-part movement.

M A R K E T

Photographing female nudes in 3D is all in a day’s work for Jeff Robb. Considered a leading world authority on lenticular photography – that’s a cutting-edge technology that gives images the illusion of depth and movement – the London-based artist also created the first holographic artwork to be displayed in the V&A just after he graduated from the Royal College of Art in the 1990s. Robb has also been known to create bronze sculptures, paintings and sound installations, but his solo show at Mayfair’s

Albemarle Gallery this spring will focus on his lenticular shots, such as Free Fall 1 [pictured] and the Unnatural Causes series, which features willowy models with their limbs contorted into small spaces. And the best bit – the images don’t require the viewer to wear 3D glasses to see them properly. So there’ll be no walking around the gallery looking like you got lost on the way to the cinema. H 16 April-9 May at Albemarle Gallery in association with Shine Artists London. albemarlegallery.com

IWC In honour of its 75th anniversary, IWC’s icon, the Portuguese, doesn’t just get a makeover inside and out, but a new(ish) name: the Portugieser. The Annual Calendar model uses the brand’s new, in-house calibre.

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ART PAINTING

SHORTS

SHORTS

PHOTOGRAPH: Obama by Ryan Hewett, courtesy of The Unit London

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Blurred Lines It is hard to imagine a world where Mahatma Gandhi, Nelson Mandela and Hitler would stand side by side. Yet South African artist Ryan Hewett places these familiar figures on a level playing field in his new upcoming untitled exhibition at The Unit London. Alongside such revered icons as Martin Luther King and Abraham Lincoln, Hewett also portrays infamous

characters including Adolf Hitler, Josef Stalin and Osama bin Laden. In Untitled, Hewett presents his artworks through a markedly honest, unbiased lens: any judgement on them is made by the viewer. There’s no political message, and even the exhibition’s title is devoid of any meaning. Ryan’s semi-abstract portraits are similarly stripped back: familiar figures are distorted and deconstructed through

the use of richly hued textures, splashes of colour and broad brush strokes. This artistic desire to withhold judgement presents a refreshing way of seeing the world. Hewett says: “I believe we should be giving more reflection to the effects, good and bad, that these figures have had, and are having on us as a society.” H Untitled by Ryan Hewett is at The Unit London until 24 May. For more info, visit theunitldn.com

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F U N DA M E N TA LS

Can the systems do it better? The answer is, in my mind, yes they can THE SYSTEMATIC APPROACH . 048 NICOLAS CAMPICHE . 044 | AREF KARIM . 048 | SHEILA PATEL . 052 | TREASURE ASSETS . 058 | ART INVESTMENT . 070 | NAZY VASSEGH . 078


FUNDAMENTALS

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INTERVIEW NICOLAS CAMPICHE

The Right Kind of People Pictet Alternative Advisors CEO Nicolas Campiche isn’t interested in simply building a company on strategy and unbridled growth, he wants people skills and steady performance, finds CATHY ADAMS

PHOTOGRAPHS by Charlie Strand

LET’S BE HONEST, the hedge fund industry isn’t exactly known for its people skills. Fortunately, Nicolas Campiche, chief executive of Pictet Alternative Advisors, is a soft skills kind of guy. It’s the soft skills – not just the sexy strategies – of hedge fund managers that Campiche is sniffing out for his fund of hedge funds. It all sounds like being picked for a sports team by the most popular kid in school. “Essentially what we’re doing is judging people: assessing their skills, ability, motivation and integrity,” he tells me as we chat in a brightly lit Mayfair office during one of his many flying visits from Geneva. People are at the core of what Pictet does. “Where we add value is our ability to identify people, or a group of people, that are able to generate strong returns with a minimum of risk. “The challenge is identifying the right people. You need a good combination of soft skills, and the ability to really drill down, analyse and understand very complex investment strategies.” Pictet Alternative Advisors – a separate entity, but fully owned by Pictet – was set up in the early 1990s as an offshoot from the private bank. It retains its independence from the parent, and the independence “has a very important impact on the way we identify investment opportunities”. Initially driven by client demand, Pictet has been investing in hedge funds for

At Pictet, Campiche cut his teeth in 2000 as a wealth manager in London. At the time the office was small but the spirit was much more ruthless

around two decades. “Clients were invested with people like Julian Robertson and, later on, Louis Bacon,” Campiche tells me. “It was their performance that attracted the attention of one of the partners at the time. He thought, ‘Well, it’s either fraud and we should let our client know, or it’s real and then we should have all our clients benefit from these type of investments.’” In the early days, the hedge fund investment side of Pictet was a “confidential” business, as “alternative investments were very opaque, even dubious.” Campiche adds: “We only had a few clients, but nevertheless it got us into the industry very early on, enabling us to accumulate a lot of experience.” Campiche joined Pictet Alternative Advisors in 2000 after he moved over from the wider group, following stints at the United Nations Pension Fund in New York and the Credit Suisse Group. At Pictet, he cut his teeth as a wealth manager in London – “one of the greatest parts of my career”. At the time the London office was small but the spirit was “much more ruthless”. Pictet currently employs 281 people in the capital. “It was institutionally driven in a very Anglo-Saxon world, which was completely different from Pictet in Geneva at the time – it was really a private bank in the old sense: very paternalistic with a great atmosphere but completely different from what I discovered in London,” he adds. Installed back in Switzerland working for Pictet Alternative Advisors, Campiche was named chief executive in 2003. He watched the firm grow and grow, maturing into a highly institutional business. Around the same time that Campiche took the helm, its assets under management (AUM) rocketed. At the start of the 2000s, its AUM totalled around $500m, and in autumn last year, the assets had grown to $16bn – just shy of $10bn in hedge funds,

roughly $5.5bn in private equity and the rest in real estate. “We have a lot of money to take care of, basically,” he admits. The fund of hedge funds manager had seized on a trend. “When I joined Pictet Alternative Advisors in 2000, there were only a handful of hedge funds in London – we’re talking maybe ten significant funds. The boom in London really started in 2000,” Campiche says. “Then 2003 was a real turning point for hedge funds everywhere in the world, because the year before, they posted their best relative return with a significant drop in equities. Posting positive returns on that year created momentum in assets flowing into the industry.” The funds that Campiche and his team invest in are spread globally, although he tends towards US-domiciled managers – simply because the market is more mature over the pond. But what they’re not ▶

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INTERVIEW NICOLAS CAMPICHE

FUNDAMENTALS

▶ interested in are pricy strategies. “We are very careful to make sure that the fee level – which is always too high from my perspective, but I accept that’s part of the game – is justified by skills, unique processes, or unique sourcing. You have to be able to attach a value to the price. “What we look for is experience, skills, an ability to recreate performance year after year. We would try to avoid buying into a trend or a situation where it’s not clear that this is the manager adding value, or just the manager being in the right spot at the right moment.” Campiche is right to be paranoid: “There’s a lot of fluff in the business.” Ronald Reagan’s “trust, but verify” might have originally been used to talk about Russia, but it’s equally applicable to the hedge fund industry. “It’s a good description of what we do,” Campiche says. “Trust is a very important element in what we do because we’re in a people business.” Although he hand-picks the managers he wants to work with, Campiche admits that “hedge fund managers are rarely easy to deal with”. “It’s very much a cyclical thing,” he says. “When they need capital they’re much easier to deal with, much more transparent, much more willing to answer your questions, go out of their way to help you. When they don’t need capital it’s a much more difficult environment to navigate in. “Hedge fund managers come in all different shapes and sizes. Some are very institutional. Some are still very entrepreneurial. There are very large organisations and very small organisations, and most are very transparent. Very few remain opaque, but there are still a few of those that can afford to be.” By carefully selecting the right people, turnover is very low within the fund

Hedge fund managers are rarely easy to deal with. When they need capital they’re much more transparent, more willing to answer questions 46

HEDGE

selection, and Campiche’s objective is to maintain performance, rather than hitting the lights out one year and disappearing the next. The numbers speak for themselves: Pictet’s oldest hedge fund mandate, which has been running since 1995, has delivered a return of 8.1% annualised. “We’re not here to shine for one year,” agrees Campiche. “We’re here to stay. That’s definitely one of the trademarks of Pictet, and by extension Pictet Alternative Advisors. If new strategies emerge we want to see them tested through a difficult period of time.” That explains why, during the financial crisis, Pictet Alternative Advisors “shunned” credit derivative strategies. Firstly, because the products were hard to understand, and secondly, the group didn’t “feel comfortable enough to invest in them”. “It helped us a lot in 2007/2008 because we weren’t exposed to a number of blow-ups in that field,” he adds. But there are always lessons to be learned. The chief executive admits that,

over the years, he has learned not to be so dogmatic towards what he should and shouldn’t invest in. There isn’t a clear trend but he says he has a “very clear mind” on what he’s willing and not willing to do. Unsurprisingly, this people person isn’t resting on his laurels, despite the growing interest in alternatives and the huge lift in Pictet Alternative Advisors’ AUM over the past few years. “There are still so many things to do,” Campiche says. Specifically, he’s eyeing tangible assets such as timberland and farmland – “there is a good chance that we actually expand into real assets in general, which is already the case in real estate”, because these areas offer “very attractive investment opportunities”. “The alternative space is gaining in traction and importance in clients’ portfolios,” Campiche finishes. “I am very bullish about Pictet Alternative Advisors.” Those are the words of a guy who you definitely want on your team. H For more information, see: pictet.com


FUNDAMENTALS

The Systematic Approach Aref Karim, CEO, CIO and founder of Quality Capital Management tells JESSICA FURSETH that a personal touch is valuable, but if in doubt trust in the strategies, systems and data at your disposal FOR A MANAGER of a quantitative hedge fund, Aref Karim has a distinctly personal approach. “I generally believe that investing is using a combination of the left and right side of the brain,” he says. “No matter how systematic you are – and we are running everything systematically – the ideageneration part of it, that’s all art.” To be able to blend together these two sides is a major part of the appeal for Karim, who founded Quality Capital Management (QCM) in 1995 and remains in charge of the investment strategy. “This industry is full of great, innovative people who are all trying to do the same thing: enrich people’s lives and, indirectly, create wealth,” he says, highlighting enrichment before wealth not for the last time in our chat. On that note, Karim could have moved to the US after his 13 years with the Abu Dhabi Investment Authority (ADIA), but chose London for his family: “In 1995 my three children were quite young, so schooling was important. One of the better independent schools in a relatively safe, green area happened to be in Surrey.” Of course, London is not a bad place to run a business, either: “The other reason was from a time-zone perspective: London is very well positioned for the business we run.” London is just up the rail tracks from QCM, which is headquartered near Karim’s home in Weybridge. It’s a freezing winter day in the picturesque Surrey town, and

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earlier,” says Karim. “We delayed it because we were waiting for the right timing. 2014 was still a good year for us, but we could probably have done a lot better.” QCM’s upgrades have also meant adjusting the investment model: “We don’t like to interfere in the actions taken by the models we have developed. We’ve tested these ideas over years of data. But because we’d had a setback we were being overly cautious, so we held back on implementing changes.” This was in part because Karim ultimately believes the investment model can read a situation better, working without emotion: “Can the systems do it better? The answer is, in my mind, yes they can.”

The appeal of futures QCM offers daily liquidity to investors, an unusual feature for a hedge fund. But Karim’s decision to invest solely in exchange-traded futures came before the downturn put the spotlight on liquidity. “We started with futures way back, as that was an area of expertise for me from ADIA. For me there’s no difference in the nature of the exposure: it’s a derivative, there’s an underlying asset.” Another benefit to futures is the nimbleness, says Karim: “We can margin things, so your $100 [exposure] can be funded by only a part. That opens up an avenue to use this strategy as what we would call portable alpha.” But possibly the most appealing element of managed futures is the “extremely low” correlation to the behaviour of other assets. “That’s the beauty of it: in an equity bull market, chances are we’ll also do well by being long on equities and other assets in the portfolios. Where things change completely is in bear markets, as we saw in 2008 when the markets crashed – that’s when these strategies really come into their element by providing a huge risk offset. They do it by going short on equities and long on safe haven assets.” ▶

PHOTOGRAPHS by David Harrison

The investment model can read a situation better, working without emotion: ‘Can the systems do it better? The answer is, in my mind, yes they can’

we are sitting in QCM’s offices, which are sharply decorated in white and red. Karim himself is sharper, with cufflinks, a black and white tie, and a handsome Patek Philippe Nautilus. He’s calm and business minded when talking shop, as 2015 represents “a return to opportunity” for QCM. The firm’s investment strategy is driven by a wholly integrated model that’s mainly long volatility: “I feel that QCM today is a leaner, stronger firm. We have revamped all our products. A considerable amount of research has gone into it,” says Karim, deliberate with his words. “Yes, we’ve had a blip. But there’s no reason why we can’t come back with more vigour, with an enhanced and streamlined QCM, to move forward in order to serve the investor society in a more meaningful manner.” This has already started to happen, as the quantitative hedge fund has seen a return to form over the past year. Assets under management now stand at just more than $60m, after a gain of nearly 13% in 2014. This is still a way from the 2012 peak of nearly $1bn, though – that’s the aforementioned blip – as the QCM model struggled to maintain its position during the sluggish low-volatility period. “Particularly given our style of trading, we tend to like directional moves, divergences and flows of capital across regions, because it create waves of opportunity,” says Karim. “And so this quiet period, when interest rates were being targeted to virtually zero, it took away those opportunities.” While the post-crisis years were great for QCM’s investment style, the problem came later, when “uncertain conditions” turned to market inertia. “To navigate through that kind of environment is trickier. We didn’t have the tools to position ourselves correctly. Now we have done an extensive amount of research to better deal with these kind of environments.” The upgrades started in 2013 and finished in 2014. “I wish we’d done it


INTERVIEW AREF KARIM

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INTERVIEW AREF KARIM

FUNDAMENTALS

▶ The

sovereign experience Karim started in accountancy, an experience which has followed him into alternative investments: “Accountants are trained to look at micro and macro pictures, which is a good habit.” QCM’s long-term investment outlook is a heritage from Karim’s 13 years at ADIA. “Abu Dhabi provided a unique experience. The fund manages the excess oil revenue of the country – it’s huge! And it has always been fairly low-key. I was very privileged to be in a position where they did not have, at the time I joined, an alternative investment portfolio. To be involved in the project at its embryonic stage was a greatly interesting experience for me.” Karim took the hedge fund portfolio from idea to execution, balancing the extreme long-term mandate with proving the merits of alternative assets for a sovereign wealth fund. “This was a huge experience,” he says. QCM represents a scaling-down of this same long-termism to “a miniscule level” compared with ADIA. “But it’s fun. We brainstorm investment ideas with the researchers, go through the challenges of running the business, deal with issues and downturns, and then enjoy the upticks.” That Karim cares deeply about his company is obvious from the way he talks, but in any case he’ll say it outright. “I love what we do. If somebody says: ‘What is the purpose? Why does QCM exist? Why are you running the business still?’ It’s because I’m very passionate about it, and more importantly it’s because there’s almost a philosophical and societal purpose behind it.” The capital already invested into the business is one element, but there’s also the firm’s experience. “We’ve navigated good times and the periodic storms. We’ve learned a lot, and there’s no reason why we cannot pass that on,” says Karim.

‘Why are you running the business still?’ I’m very passionate about it, and because there’s almost a philosophical and societal purpose behind it 50

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The greatest support This outlook hasn’t changed since the company started 20 years ago, according to Karim, who is now 62. “I could have retired and walked away, but that doesn’t complete my own mission. I get a great amount of satisfaction from knowing I can share this pool of capital with investors.” The CEO has a wide range of hobbies: literature, poetry, art, culture, travel. “Last year we were in Namibia, which I was fascinated by. We flew over the largest sand dunes in the world, over Skeleton Coast, heading right up to the northern tip of the country. We met this tribe called the Himba, a nomadic tribe who are dwindling, sadly. It was quite remarkable, seeing how content they were with simplicity.” He talks about going to Cambodia with his daughter, where the French abandoned train tracks from the colonial days near the Thai border. “The kids in the Battambang villages create these roofless carriages for the tracks, where you can sit on a bamboo mat and go through the countryside. They call it the Bamboo Train. Fascinating.” Life in London is pretty good, too: “I really love the city: the culture, the diversity

– it’s just phenomenal.” And the schools, of course – Karim came to London twice for the sake of education: the first time to finish university after the independence war broke out in what is now Bangladesh, and the second time for his children. “My eldest outgrew the grade school in Abu Dhabi, and being a single parent, I didn’t want to send her to boarding school. I simply didn’t like the idea. I spend a lot of time with my children.” It would seem Karim’s three children appreciate that sentiment, as they all live close by and two of them, Raami and Faaria, now work at QCM. Faaria, the firm’s director of business development and marketing, admits that working with family might seem a nightmare for some. “For me, it’s business as usual. The added benefit is having a truly inspirational man as my line manager, incentivising me to work harder for the greater good of the business, clients and shareholders, and to try to make a difference in the lives of others.” Faaria concludes: “The greatest lesson I take away is that family offers the greatest support.” H For more information see: qualitycapital.com


Wick Antiques Ltd

Unit 2 Riverside Business Park, Gosport Street, Lymington, Hampshire SO41 9BB 01590 677558 | wickantiques.co.uk | 07768 877 069


FUNDAMENTALS

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PROFILE GSAM

It’s All in the Balance The hedge fund industry has done a lot of growing up, but now is the time to secure its succession: Sheila Patel, CEO of International Goldman Sachs Asset Management, explains to SIOBHAN McFADYEN

THE THEORY OF equilibrium is a concept that never strays far from Sheila Patel’s consciousness. Whether she’s analysing a corporate balance sheet or negotiating her next catch and release while fly-fishing in the remote waters of Patagonia, the importance of maintaining balance and clarity of thought is always on her mind. Patel joined Goldman Sachs’ Securities Division in New York 12 years ago and has since risen to senior ranks within the firm, having been named partner in 2006. In 2009 she crossed the Atlantic to the firm’s Fleet Street offices in London before moving to Singapore in 2013, where she now heads up international operations of the $1.18 trillion Goldman Sachs Asset Management arm. In her role, she oversees GSAM’s provision of investment management and gives advice to clients across asset classes and in multiple geographies, but the Alternative Investments Managers Selection group is a space she has focused significant time on in recent years as investors have sought to understand the complexities associated with investing in alternatives. Patel says she has witnessed an evolution in the hedge fund space, insisting the entire sector is going through a period of unprecedented change. “Clients are no longer binary, either doing everything themselves or outsourcing completely to a fund of funds-type advisor,” she explains. “In general, they are looking for more of a hedge fund solutions or a hedge fund advisory business. Our clients leverage the fact that we have more than 50 researchers and a dozen people working on operational due diligence. They spend their time analysing thousands of hedge funds around the world to help clients find the most suitable strategies.” Much of her employees’ work is now spent educating clients on evaluating hedge funds, says Patel. This gives them

proper due diligence and ensures that they meet compliance standards. “There is no longer an assumed comfort level,” she adds, “most investors want to make sure they kick the tyres themselves, they understand the strategies, and they help to make the decisions. It has led to quite an interesting evolution of the hedge fund advisory business model. “There are many regulatory changes facing all types of investors that have changed the way they need to approach their overall portfolios and investments in individual asset classes. Our role as an asset manager is partly to help clients navigate this new environment, helping to ensure their investments are appropriate, transparent and capital efficient. “When looking at specific hedge funds, our clients don’t just have questions on their performance, they want to know if they have a robust infrastructure, clear succession planning and risk management processes. They also want to ensure they will have regular visibility on performance and an understanding of the underlying asset classes they are invested in. “They want to understand these things in relation to the added value that an individual manager is bringing. That’s something that won’t go away, it’s very much part of the environment now and is a sign that the hedge fund industry has developed significantly.” Looking at global markets more broadly and across asset classes, Patel says clients are continuing to search for yield in a complex economic and market environment, where divergence will be a key theme for the year ahead. Patel says that the US economy has been a bright spot over the past two years and investors still see positive signs there, with the deficit the lowest it has been in seven years and a lower oil price offering a possible boon to consumers.

“We saw the most confidence in the US economic recovery well over two years ago from Asian investors,” she added. “They looked at the US and felt that the tide had turned, they felt that there were opportunities in real estate, high yield and the energy sector. Some of those opportunities have changed since then, and certainly investing directly in the energy sector is potentially more challenging today, however the overall belief from those investors was that the US recovery was going to be sustainable and real. “Looking back at that view from today, it does seem that the thought process was correct. The recovery was driven, in some respects at least, by the positive economic consequences of the shale energy revolution and the relatively healthy state of the corporate sector. “For investors, it has been encouraging to see US corporates strengthen their balance sheets over recent years and then begin to put excess cash to work, either through strategic M&A activity or investment in their businesses. They have also been willing to return capital to shareholders where an acquisition or new investment programme isn’t necessary. “The recovery since the financial crisis in the US has been remarkable in many ways and there are multiple views on how that story develops. We remain fairly positive and see growth accelerating to ▶

There is no longer an assumed comfort level: investors want to kick the tyres themselves, understand the strategies and help to make the decisions 53

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ELIZABETH STREET SW1 Bespoke ďŹ ne jewellery

www.devroomen.co.uk 59 Elizabeth Street, London, SW1W 9PP

+44 (0) 20 7730 1901


PROFILE GSAM

FUNDAMENTALS

▶ just

over 3% in 2015, up from around 2.1% in 2014. They key thing on many investors’ minds is how the process of coming out of an extraordinary period of monetary policy happens. Our view is that the first rate rise will come either the second or third quarter of this year, and all market participants will be watching closely for signs of how quickly and steeply they increase after that.”

We have finally seen confidence from investors; they are finally saying ‘this time it’s real’. Our clients are now going to India to check it out in person

She added: “In Europe, we continue to expect slower growth – somewhere around 1% for the year. The real impact of the ECB quantitative easing programme announced in January will remain unclear for some time to come but Mario Draghi’s action has given confidence to markets despite uncertainty over the outcome of fluid political situations related to Greece and Ukraine and a busy electoral calendar. “The impact of a lower oil price is dampened in Europe because of higher taxes on energy, but overall it is still likely to have a net positive effect.” In emerging markets, Patel cautions against viewing a disparate set of economies as a homogenous unit: “The varied impact of lower oil prices reinforces the dispersion of EM returns. Consumptionled economies such as Turkey, Indonesia and the Philippines stand to benefit considerably, while there are clearly challenges for major oil producers such as Brazil and Nigeria,” she says. “We think that China’s growth is likely to slow from around 7.3% in 2014 to 6.8% this year, owing to weakness in the property market and a decline in high-end consumption. Policymakers are attempting to simultaneously stimulate growth, enact reforms and preserve financial stability. We have some concerns over China’s credit growth, but we don’t see its slowdown as a source of a major shock risk to the global economy for the time being.” When it comes to one country with an optimistic outlook, Patel doesn’t have to take much time to think, her mind immediately turning to India which continues to offer healthy signs of an economic renaissance. Indeed, after its benchmark stock index gained 42% over the past 12 months the country is raising eyebrows worldwide. “We have finally seen confidence from investors; they are finally saying ‘this time it’s real’,” says Patel of the country which can thank the open-door business policies of Indian Prime Minister Narendra Modi for its revitalization. “Our clients from across the world are going to India to check it out in person. The government has made itself so much more available to business and to investors than we’ve seen in the past. It’s very businessfriendly – of the emerging markets, ▶

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PROFILE GSAM

FUNDAMENTALS

I never switch my phone off on purpose; the only time I am ever out of reach is when there’s no signal or I’m on the plane, as I usually sleep when I fly ▶ it’s one that previously people may not have spent as much time on because of the challenges, but now they’re taking a second look. The government is simplifying rule sets, making it easier for potential investors to navigate their regulatory frameworks, and providing straightforward answers to questions. The playing field is opening up and that’s great – the biggest challenge they have is sustaining the momentum.” Client-facing work is a key part of Patel’s job, taking her to at least four countries a month. That part of her job is clearly one she values a lot, being constantly on call to ensure their needs are met, even when she’s dabbling in fly-fishing, a hobby she learned growing up visiting relatives in Wyoming as a teenager. And while it’s not in dispute that she has an unwavering commitment to getting the job done right, she does occasionally turn her attention elsewhere – whether that’s behind the lens of her favourite camera or studying contemporary photographers including Jean-Francois Rauzier, or even cracking up her friends – and us – with her spot-on impression of Hollywood actor Matthew McConaughey. “I never switch my phone off on purpose,” she says with a smile. “The only time I am ever out of reach is when there’s no signal or when I am on the plane as I generally sleep when I fly.” She is also a big supporter of the philanthropic education movement 100 Women in Hedge Funds, which mentors the breakthrough stars of the future. “It’s a great organisation,” she says. “It’s bringing a whole new generation of young women to the hedge fund industry and has access to all the upper echelons of the funds in the world, but also brings a charitable angle. It’s opening doors for women and that can only be a good thing.” H

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KENT CLARK CHIEF INVESTMENT OFFICER OF HEDGE FUND STRATEGIES FOR GSAM’S ALTERNATIVE INVESTMENTS MANAGER SELECTION (AIMS) INTERVIEW BY: SIOBHAN McFADYEN Goldman Sachs Asset Management’s hedge fund solutions business is sought after by corporate pension plans, public funds, financial institutions and sovereign wealth funds globally, and provides investors with a range of options, from fully discretionary management to advisory services spanning asset classes, industries and geographies. Goldman Sachs has been investing in hedge funds since 1969 and while there has been much written about challenges across the sector the outlook isn’t exactly bleak, according to Kent Clark, Chief Investment Officer of hedge fund strategies for GSAM’s Alternative Investments Manager Selection (AIMS) group.

DEMAND “In spite of what you may read in headlines, demand from many of our clients remains high for hedge funds,” says Clark. “That is true both for institutions who want to make their first investment in hedge funds and for those with existing allocations.” PORTFOLIO GSAM’s AIMS group works with clients to help them select and monitor investments in external managers. Mr Clark says the group, with over 300 people in eight cities around the world, focusses on finding the best ways to add value from uncorrelated or lowly correlated returns and looks for new drivers of returns in clients’ portfolio. “Client engagement often starts with running a diagnostic and looking at what the concentrations of risks are in their portfolio,” continued Mr Clark. “We might make a recommendation with someone who, for example, has a lot of exposure to equity markets. We may suggest our clients invest with macro and futures managers who take risk in currencies, interest rates, commodities and maybe equities – but can be both long and short. We think this is often the best way to deliver varied returns and not just deliver returns from the same thing that is already in their portfolios.” ACTIVIST STRATEGIES Another area of recent focus has been activist strategies where activist managers

take large enough equity positions in public companies to enable them to influence corporate strategy in some way. These managers might try to gain access to board seats, encourage M&A activity or call for changes in the focus of the company. “They’re activists in the sense that they immerse themselves in the business and suggest corporate changes that may increase the value of the business for shareholders,” says Clark. “There has been significant scope for these strategies to be successful over the last couple of years given many corporations’ strong balance sheets and cash positions.”

MERGER ACTIVITY An increase in merger activity has also driven a re-emergence of event-driven strategies according to Mr Clark. He added: “The managers we work with in the space focus on events that will play out in equities. Over time there may be more credit orientation but right now corporate activity, and particularly merger activity, with slightly wider merger spreads, is an attractive place to allocate capital.”


Sir Jacob Epstein, 1932 Estimate: £ 5,000–8,000 Bellmans

Auto Union DKW Type F7 Cabriolet Estimate: € 50,000 Auctionata

Sapphire and Diamond Ring Estimate: £ 200–300 Fellows

Gold pocket watch, early 20th century Estimate: £ 2,000–3,000 Michael J Bowman

Portrait of Alfred Hitchcock Estimate: £ 2,500–3,500 Dreweatts & Bloomsbury

Rolex, circa 1989 Estimate: £ 16,500–18,500 Watches of Knightsbridge

Gerard Dillon Estimate: € 20,000–30,000 deVeres

ALL AUCTIONS IN ONE PL ACE

Balvenie Vintage Cask 1966 Estimate: £ 900–£1,100 McTear’s

Andreas Gursky Estimate: $ 600,000–800,000 Phillips

Doucai ‘Lotus & Bats’ Vase Estimate: £ 150,000–200,000 Peter Wilson

Bernard Leach Dish, circa 1950 Estimate: £ 1,200–£1,800 Maak

Troika Pottery Mask Estimate: £ 600–800 Chorley’s

A Tahitian Necklace Estimate: $ 2,000–3,000 Aspire Auctions

Robert Indiana ‘Golden Love’ Estimate: $ 3,000–5,000 Wright

Hans Wegner Swivel Chair Estimate: $ 8,000–12,000 LA Modern


FUNDAMENTALS

The Treasure of a Man Put your financial knowledge to use outside work and invest in something you can enjoy while it’s accumulating wealth – try fast cars, ancient armour, film memorabilia, stamps, coins or historic globes

▲ PORSCHE TOTTY: This 1965 Porsche 904 Carrera GTS was only the second of its kind to be built. It sold for $1.65m in RM Auctions’ January sale in Arizona.

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TREASURE ASSETS MOTORS

CLASSIC CARS

By Max Girardo RM Auctions

1. Do it for love Don’t buy a car with the intention of making money overnight. Buy something you will enjoy driving and owning. But don’t fall in love at first sight, either. Some cars have great sex appeal, but that doesn’t always translate into value or reliability. 2. Buy a significant make Classic cars with famous heritage such as Ferrari, Bugatti or Porsche are better long-term investments than less desirable marques. But note that not every famous manufacturer’s model is valuable – each has had its share of winners and losers. 3. Do your homework The internet is a valuable research tool. Classic car clubs and live auctions are also great places to network with knowledgeable enthusiasts. Before you buy, have an expert check over the car to make sure you get what you’re paying for. And always buy from a reputable source. PHOTOGRAPHS by Simon Clay, courtesy of RM Auctions

4. Study the market Several publications offer insight into the market. Highbrow automotive magazines such as Octane and Classic & Sports Car track auction results. Market guides such as Hagerty Price Guide offer current values based on recent sales and most auction houses publish their sales results online. 5. Make it rare, please Low production numbers and survival rates are important factors in the car’s value. Fewer than 100 produced is good. Fewer than 50 is even better. Think of

One-of-a-kind pre-war luxury cars, and certain cars from the 1950s and 1960s built in low numbers with special options, will hold their value the most

great European sportscars such as Jaguar C-Types (50 made), Ferrari 250 GTOs (39). One-of-a-kind, pre-war luxury cars – and certain cars from the 1950s and 1960s built in low numbers with special options – will hold their value the most.

6. Learn your history A car’s complete history is one of the most important factors to consider. Any factoryissued paperwork can add considerable value to a car’s price. Who was the original purchaser and where was it sold? Did a notable individual own it? Did the owner take photos or keep a service log? 7. Consider a sportscar or racecar For a real thrill, buy a vintage sports or racecar; these are always in demand, and are the strongest areas of the market at present. The current market for a Jaguar D-Type is about $2m, but the one Stirling Moss drove at Le Mans is worth much more. 8. Bigger is sometimes better Bigger engines can mean a bigger return on investment. High-performance, V8, four-speed muscle cars, built in limited numbers in the 1960s, are desirable. Italian V12 sportscars took victories on the track because of their sheer power, aerodynamics and performance, making them instant classics, like their derivative road cousins. 9. Build the right portfolio Building a great collection with the right cars will help build a reputation that can be good for the future value of the collection. A well-planned portfolio will draw a specific and much-attuned market of potential buyers at auction time, helping to secure a strong return on the original investment. 10. Care for your car Classic collectibles require regular service and maintenance, plus climate-controlled system garages or special storage facilities. Insurance is surprisingly more affordable for a classic car than a new one – if you keep an eye on the miles. Most of all, enjoy your vehicle – participate in concours events or competitions. You could win awards and renown that will help secure the car’s provenance and increase its value.

BRONZE

BY EDWARD HORSWELL SLADMORE GALLERY

The Sladmore Gallery was established in 1965 to sell 19th- and early 20thcentury bronze sculpture. We have seen and sold some incredible pieces over the years, but my top three picks from an investment viewpoint would be key works by Auguste Rodin, Rembrandt Bugatti and François Pompon. All three sculptors are well known and have had recent museum shows – essential for an increase in awareness, which in turn has a positive effect on price. For Rodin’s wonderful Jean d’Aire, we can chart an auction increase over the past 15 years from $50,000 to $500,000. This tenfold increase is partly owing to a reliable authentication service appearing for Rodin’s work in 2007. This is another important factor in buying any major art work – expertise adds value. We first sold an example of Bugatti’s sublime Walking Panther in 1969 for £1,800. My first sale of this model in 1982 realised £25,000 and today a finequality example would go for more than £400,000. Here, an iconic work from the leading artist in his genre, featured in recent museum shows and books, has provided almost a 16-fold increase in 30 years. A similar return would have been made for Pompon’s marble Polar Bear. When buying art purely for pleasure, what you like is important, but finding a trustworthy advisor is essential. There is plenty of information online but help will be required to analyse what it all means. As a principal dealer I am prepared to invest in my own stock. I am also secure in the knowledge that my most loyal clients have made far more than me. Perhaps I should close my doors and hang on to everything. For more information: sladmore.com

For more info: rmauctions.com

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TREASURE ASSETS ARMS AND ARMOUR

FUNDAMENTALS

ARMS AND ARMOUR

Dr Glenn Lacki Kallos Gallery HOMER’S LARGER-THAN-LIFE EPIC heroes crossed swords and bandied words on the battlefield, competing over the wellworked arms and armour of their fallen companions and betters. Some 3,000 years later, those with the means and the will still vie for the arms of the ancients in the more sedate surroundings of galleries and auction houses. For the modern collector, such treasures exert the dual attraction of striking aesthetics and sound investment.

Brothers in arms Helmets, breastplates, swords and shields, spears, greaves and all the various other paraphernalia of bloodshed and military ceremony: often these objects are extraordinarily beautiful (and mightily cool) in their own right, and the stories each has to tell strike the heart in their human immediacy. A real, breathing person once wielded that short-sword; wore and polished that helmet; spent five months of his soldier’s pay to embellish that cuirass. It takes no great study of history to appreciate so essential a connection: through such objects real people, and lived lives, can be yours to touch across time; though steer clear of the dealer offering to sell you the Shield of Achilles. PHOTOGRAPHS by Kallos Gallery

The value of craftsmanship The market in the ancient arms of the Greeks, Romans, Persians, Hittites, Egyptians and beyond never really falters. Nor do the returns that owners of these works can expect. Outrageous prices are common for the second-rate in the contemporary art market. Yet here one

It is not unusual to see estimates doubled, tripled or quadrupled on pieces of particularly rare type, especially when they have appealing aesthetics

can invest in the best at comparatively reasonable prices – for now, at least. Auction results, though only the most visible part of the story, are revealing, and doubly so in the uncommon circumstance that an object has been offered publicly on more than one occasion. It is not unusual to see estimates or earlier results doubled, tripled and quadrupled on pieces of particularly rare type, and especially when that type is one of especially appealing aesthetics. A Corinthian bronze helmet of the much sought-after Hermione type sold at Sotheby’s New York in 1990 for $115,500, and again in 2007 for $270,000. The piece was incomplete, heavily restored, and of middling quality; yet the beauty and rarity of the type drove its value higher. Outstanding works obtain outstanding results, time and again. At Christie’s in 2010 alone, the Crosby Garrett Roman cavalry parade mask and helmet, offered in London after its discovery in Cumbria, fetched the attention of the British public – and £2.3m, while an exquisitely etched and crested bronze Cretan helmet took $842,500 in New York. Quality, rarity and importance overlapped equally in both pieces.

Gird yourself for battle More and more museum collections and auction results are being made available online. Whether you are looking to buy at auction, from a dealer, or through private arrangement, the scope for easy comparison of similar or related artworks is large. Ask important questions: how many exist? Which museums have examples, and in what condition? How often does such a thing appear on the market? How many available examples are of comparable quality to the piece? Few have the time for immersive study, but a knowledgeable and reliable dealer can fill this gap, and you should not hesitate to ask questions. If trustworthy they should be happy to guide you in acquainting yourself with the subject, and in your purchases, regardless of their own interest. As ‘pro tips’ go, ask the seller for an X-ray: with arms and armour especially these can reveal a piece’s genuine quality and condition, highlighting its original craft and any later restoration. These can also be, in their own right, as beautiful as they are useful.

▲ X MARKS THE SPOT: The Hermione-type Corinthian bronze helmet – the X-ray negative shows the marks of the craftsman’s hammer and a restored crack beneath the proper right eye-hole.

A gathering of arms A collection of ancient arms and armour can be eclectic, encyclopaedic and scholarly, or very esoteric. Hedge fund manager Christian Levett amassed a wonderful trove, numerous and far-ranging, upon which he founded the Mougins Museum of Classical Art in 2011. But unless you have immense wealth and intend to open a museum, too, you need to choose between quantity and quality. If beauty is what drives you, then familiarise yourself with what is out there, and keep the bar strict and high. If the treasure you have in mind is something not often seen, of beautiful craft and condition, better than many museum pieces, unlikely to be bettered on the market and presently available for purchase, then the ancient Greeks would call this ho kairos – the supreme and opportune moment. Seize it. Once gone, the market may never see its like again. For more information: kallosgallery.com

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‘Cements its place on the international art fair circuit’ Wallpaper* ‘The fair is firing on all cylinders’ The Telegraph ‘This art fair is a must’ Time Out

150 GALLERIES 40 COUNTRIES OVER 500 ARTISTS Tickets available from £15 Book now at artfairslondon.com


TREASURE ASSETS GLOBES

FUNDAMENTALS

GLOBES

Charles Wallrock Wick Antiques I HAVE BEEN buying and selling for more than three decades, to private collectors and the trade worldwide, as well as being the main supplier to Harrods’ iconic antique and fine furniture department for more than 20 years. Its closure a couple of years ago has freed up my time to concentrate on my real passion – globes. So what makes globes different from other antiques? Having watched markets fluctuate over my 33 years of trading, I have developed a good understanding on where the trends lie. I feel 9/11 was the start of a slowdown in the British antiques trade, owing to a decline in American tourism in the UK, compounded by the fact that US buyers were the engine room of the market. As sales dropped off in furniture and decorative items, it was globes that

held their ground and stood out as the key investment pieces. They continued to retain or even increase their value. Historically, globes were the ultimate accessories, designed and produced to accommodate kings and queens, politicians with acquisitive aspirations, and captains of industry. The globes enabled them to keep a close eye on their ships and cargoes, their armies and their territorial protectorates, as well as adorning their beautiful Georgian libraries. This still remains the case today – no gentleman’s study is complete without one or, indeed, a pair. As symbols of wealth and good taste globes are examples of timeless elegance, reflecting the style and fashions of bygone eras, and have consequently retained their cachet. As globes have always been expensive luxury items, often specially commissioned, there has always been a limited supply of stock available, thus making them all the more desirable and enhancing their value.

This particularly applies to fine 18thand 19th-century English library globes, whether they be floor- or table-standing, handmade by the master craftsmen of their time: Newton, Bardin, Cary and Adams. My personal favourites are Cary’s because of the fine elegance of the stands, combined with the superb cartography on the globes, resulting in sophisticated works of art. So, should one invest in antique globes? Like all investments, values can fluctuate, but the advantage of buying works of art is the built-in bonus of owning beautiful objects. There is the pride and pleasure of being the custodian of the prized possessions of bygone generations and added historical interest depending on the discoveries, political territories and even engineering feats plotted on your set of papers. With globes you can potentially make a savvy investment, while having the world at your fingertips. For more information: wickantiques.co.uk

PHOTOGRAPH by Chris Challis

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FUNDAMENTALS

MOVIE POSTERS

Bruce Marchant The Reel Poster Gallery FILM POSTERS WERE born in an era rich in poster tradition, an era considered to be the golden age of the poster in the western world. The public were used to seeing Toulouse-Lautrec posters for the Moulin Rouge, and Alphonse Mucha and Pierre

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Bonnard posters pasted on advertising boards, with their brilliant colours and few words. The early film posters, with their beautiful full-colour art, were in complete contrast to the black-and-white films they represented. In the early days of cinema the main source of advertising was through poster art, and it was the public’s first exposure to what they could see at the cinema; posters had to entice the viewer.

Posters and lobby cards loaned to cinemas were returned to poster exchanges when the films had finished their run. In many cases they were returned and stored in warehouses until the Second World War, when many of the posters were recycled due to paper shortages. Advertising material that remained was rented to cinemas if films were re-released, but in the late 1960s and early 1970s a handful of people began dealing in cinema memorabilia. It was more profitable for the owners of the poster exchanges to sell items to these people than to wait for a small rental fee. Film posters and lobby cards were not really accessible until the 1960s, so they are a relatively new area of collecting. Like many great novels and works of music that are now cherished, their commercial origins kept them from being taken seriously at first. In contrast, comics and baseball cards were collected in the 1930s and 1940s and are now an established market. In the 1990s, a Boris Karloff poster for The Mummy (1932) sold for £280,000 in Sotheby’s New York. This was key in bringing film poster art to a wider audience and making it a serious art form. Many major institutions, including MoMA, the US Library of Congress and the Academy of Motion Pictures Arts and Sciences, now have their own collections of film posters. The global appeal of films is now huge, with box office revenues exceeding £23bn. The most highly collectible film posters have already exceeded £100,000. These will carry on increasing owing to their incredible scarcity. Posters for King Kong (1933), Frankenstein (1931) and Metropolis (1927) have made huge sums, but there is an area of the market, which is accessible to more people, where availability and tremendous growth opportunities remain. Posters for James Bond films have already proved a good investment. The early Sean Connery posters from the 1960s have gone from hundreds to thousands of pounds in the past 15 years. Only a limited number of Roger Moore posters survived from the 1970s, and they will increase in value as availability decreases. Iconic film posters for classic titles in the 1960s and 1970s are very affordable and have potential for excellent growth in the next ten years. For more information: reelposter.com


TREASURE ASSETS COLLECTIBLES

STAMPS & COINS

By Keith Heddle Stanley Gibbons IF THERE IS one lesson we should all have learned from the financial crisis, it is to ensure that our pension portfolios, savings and assets are diversely invested. The world-record price for a stamp at auction was broken in June last year with the sale of the British Guiana 1c black on magenta for $9.48m, while the world record price for a coin was set in January 2013 when a 1794 ‘flowing hair’ silver dollar sold for more than $10m. The world record price for a British coin was set in May 2014 with the sale of a rare Edward VIII ‘proof’ gold sovereign for £516,000. Alternative investments, treasure assets, passion investments – whatever you call them – are becoming more mainstream, helped by more transparent indices and reporting, and the internet opening up auctions and information to the world. At the time of writing the Knight Frank Luxury Investment Index (KFLII), which tracks the performance of a theoretical basket of nine selected luxury assets, has risen 174%, with stamps and coins proving to be less volatile than the index as a whole over the ten-year period. Investmentgrade stamps and coins have a history of stable growth behind them, and the Coutts Luxury Index found that since 2005 they have doubled in value. They are also largely unaffected by swings in other markets,

▲ QUIDS IN: A Edward VIII gold proof sovereign sold by Baldwin’s for £516,000 last year. The coin, dated 1937, went to an anonymous bidder at auction.

being driven by the needs of collectors rather than the ‘greed’ of investors – and they are outside the banking system. Further corroboration of market strength comes in the form of Stanley Gibbons’ indices, listed on the Bloomberg Professional Service. The Stanley Gibbons Rare Coin Index GB200 (STGIRCIX) tracks the price of 200 investment-grade British coins based on global auction prices listed in the independent Spink Coins of England and the United Kingdom catalogue. The Index has shown a 12.75% compound annual growth rate over the past ten years. The Stanley Gibbons GB250 rare stamp index (STGIGB30) has shown annual compound growth of 11.43% since 2004. As with any market there are important things to consider when investing. Rarity and uniqueness is crucial, as is the condition of the item and its authenticity. Seek items with documented history and provenance, and remember a certificate is only as good as the person or body issuing it. Also only invest in areas where there are a healthy number of collectors, as collectors drive prices. Finally, price is key, and the classic value-investment principle applies here – seek to buy at below fair value. The key risk for investors in this market is trying to go it alone. As with any market where there is money to be made, you will find fakes – not just through obvious forgery, but by ‘over-grading’ a coin or mis-stating the condition of a stamp. Buy through reputable dealers and auction houses, and aim to buy the best. Alternative investments are for those who want to diversify their portfolios; sophisticated investors who already have other financial bases covered. Investors seeking high-risk, fast returns and the thrill of dynamic stock-picking and trading should steer clear of rare stamps and coins. But it might be just right for those seeking to own a tangible slice of history with a good chance of long-term capital growth. Heritage assets that can be enjoyed as well as provide a potentially good return, are increasingly being used to spread risk in a diversified portfolio. Spreading that portfolio risk is undoubtedly the best advice of all, and if you get to enjoy it, too… well, that’s the icing on the cake.

THE ‘PECULIAR’

THOMAS WOODHAMSMITH, WOODHAM-SMITH

June in London is the year’s nicest month. The weather is temperate, the days are long, the population wear fewer clothes and one feels broadly positive. What better activity is there during this season than immersing oneself in the panoply of exotic delights that are on show at the Olympia International Art & Antiques Fair. This runs from 18-28 June and counts among its exhibitors 170 of the world’s leading specialist dealers covering more than 30 categories. There is everything from ancient antiquity to the present day, and every price range from pennies to seven figures. But the joy for me is that I never know what I might find – there is a familiar expectation of the unfamiliar. At many prestigious fairs around the world you can be confident that every last scrap of an item has been exhaustively extracted. At Olympia you just never know. I intend to dive (elegantly) into the delightful breadth of the show, and unearth something – an object or piece of furniture beautifully made out of fine materials and with originality of design. As my hair greys and my waist expands I come to realise that I have seen, bought and sold an astonishing number of pieces, but the thrill of the encounter with novelty never ceases to quicken the pulse. Should I find an armoire made of iron and disguising a safe? Will I find a collection of toxic and edible mushroom models? Or a cocktail shaker shaped as a ship’s lantern? All these I have found in the past and many more. Come on June, hurry up. H Olympia International Art & Antiques Fair 18-28 June; olympia-art-antiques.com

For more information: stanleygibbons.com

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10.

Things to Do on a Sunday

1. Eat anchovies on a Chesterfield 2. Ask an Art Deco mirror your name 3. Lounge under a parasol and read Proust 4. Make every picture crooked 5. Leave very bad sonnets in random drawers 6. Lie under a table entirely sober in a turban 7. Fall in love with a swan 8. Go to Lots Road with clothes on 9. Bid for something you don’t want 10. Buy back your grandmother Lots Road Auctions The Best Thing to Happen to Sundays since Church.

www.lotsroad.com 71–73 Lots Road, Chelsea, London SW10 0RN T: +44 (0)20 7376 6800 E: info@lotsroad.com


ART INVESTMENT

FUNDAMENTALS

The Writing’s on the Wall From organic patterns created through computer algorithms to the clash of classical art with a wall of graffiti stencils, MELISSA SCALLAN brings you seven key investment artworks in different price ranges

UP TO £5,000 VAUGHN HORSMAN, SECTION 102 ■

2012, ENAMEL AND CARVED RESIN 60x80cm FRAMED

Algorithms, maths and datasets underpin the work of South African architect-turned-artist Vaughn Horsman. His enthusiasm is palpable

as he explains the process of taking an idea, developing it into data, then manipulating it to create an object of beauty. A CNC router converts his digital designs to sculptural forms: following lines of code from a computer, it carves into timber, metal, canvas or acrylic. To produce the soothing, organic contours of Section 102, Horsman created an algorithm

to represent the way natural forms grow – a tree might grow towards an attractor, sunshine, or away from another element, wind, and it will show the history of its life through its trunk rings. Courtesy of Liberty Gallery, 72 Lapins Lane, Kings Hill, West Malling ME19 4LE; 01732 522 311; liberty-gallery.com

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Mauritius Paradis Hotel and Golf Club Paradis Hotel and Golf Club

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As the first hotel company in As the first hotel company in Mauritius, Beachcomber Hotels had the Mauritius, Beachcomber Hotels had the first pick of the most stunning first pick of the most stunning locations and the best of the beaches locations and thetobest of the beaches when choosing place its hotels. when choosing to place its hotels. We are now fortunate to have a choice We now fortunate have a choice ofare eight individual andtoexceptional ofhotels eight dotted individual and exceptional around the island. hotels dotted around the island.

We’ve got everything from indulgent We’ve got everything from indulgent luxury to superb all inclusive options. luxury to superb all inclusive options. For families all of our resorts are family For families all of our resorts are family friendly offering a great range of free friendly a greatfree range of free land andoffering water sports, children’s land and water sports, free children’s clubs for 3 to 12 year olds, a choice of clubs for 3family to 12accommodation year olds, a choice spacious and of spacious family accommodation family friendly dining options. and family friendly dining options.

For the ultimate luxury stay at the best For the ultimate luxury stay at the best address in Mauritius, the Royal Palm address in Mauritius, the Royal Palm Hotel. For golfers challenge yourself on Hotel. For golfers challenge yourself on the Paradis Golf Course. And for the the Paradis Course. Andone forofthe perfect familyGolf holiday choose one of perfect family holiday choose our luxury villas at Dinarobin Hotel Golf luxury villas at Dinarobin Hotel &our Spa, Paradis Hotel & Golf Club or Golf & Spa, Paradis Hotel & Golf Club or Trou Aux Biches Resort & Spa. Trou Aux Biches Resort & Spa.

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ART INVESTMENT

FUNDAMENTALS

£5,000-10,000 MICHELE DEL CAMPO THREE GIRLS STANDING BY GRAFFITI ■

2008, OIL ON CANVAS, 190x180cm

The Mediterranean climate of southern Italy, where multiple prize-winning artist Michele Del Campo was born, is reflected in the suffusion of light and colour in his large-scale, figurative

paintings. His work is a collage of images: a background from here, a person from there, a sky from somewhere else, each element carefully selected, thoughtfully positioned, and occasionally subtly changed, to communicate a particular story. The blonde on the left in Three Girls Standing by Graffiti he spotted in Barcelona – her dishevelled hair, layered clothes, freckled face

and moody expression appealing to him. She also features in four of Del Campo’s other paintings albeit with changed backgrounds, wearing modified clothes, holding different props (binoculars, a letter, a camera) and standing alongside unfamiliar companions. Courtesy of Mark Jason Gallery, 1 Bell Street, London, NW1 5BY; 020 7258 5800; markjasongallery.com

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ART INVESTMENT

£10,000-20,000 MARCO BATTAGLINI MA DOVE CAZZO SONO? ■

2014, AIRBRUSH AND DIGITAL ON CANVAS 103.8x175.1cm

Puerto Rico-based Italian artist Marco Battaglini appropriates classical images and transposes them against modern-day western signs and symbols, pop culture and urban art. Battaglini argues that classical art is often judged to be ‘noble’ and ‘refined’ whereas contemporary imagery, such as graffiti, is considered ‘vulgar’ and ‘ugly’. But, by capturing and fusing these diverse, antagonistic, artistic styles from different times, places and cultures, the artist provokes and forces a re-reading of the images to start a dialogue: he invites the observer to see reality from a completely different perspective. Courtesy of Saatchi Art; saatchiart.com

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FUNDAMENTALS

£20,000-50,000 CHUL HYUN AHN, THREE SQUARES ■

2014, EDITION OF 3, PLYWOOD, CHANGING LED LIGHTS, MIRRORS 156.2x156.2x16.5cm

The genesis of Korean-born, US-based artist Chul Hyun Ahn’s light installations was

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attempting to paint ‘space’ on a flat canvas. To resolve this conundrum, Ahn utilised a different medium: he made mirror boxes – closed and dark – which he then filled with light sources to reveal the space within. Three Squares is part of a geometric series based on the shape of a mandala – the symbol representing the enlightened mind achieved

through meditation. This sensation radiates throughout the artwork: with its decreasing squares and changing colours, the installation draws the observer deep in the direction of the fading light, into the absence of light, the void, at its centre. Courtesy of C Grimaldis Gallery, Baltimore, US; +1 410 539 1080; cgrimaldisgallery.com


ART INVESTMENT

£50,000-100,000 FIONA RAE, TOUCH YOUR WORLD ■

2013, OIL AND ACRYLIC ON CANVAS 213.4x175.3cm

The art world was focussed on other genres when Fiona Rae was studying painting at Goldsmiths in the 1980s. “Painting was [not

considered] serious, interesting, avant-garde. I disagreed.” Rae emerged as one of the revered YBAs and is now a Royal Academician. Wearing a gas mask to combat the fumes, Rae brushes, drips, splashes, splatters and flicks oil paint to create her large, colourful, expressive abstracts. Signs, symbols and even cartoon characters are provocatively added,

a post-modern twist, incorporating kitsch into high culture. A panda, a scattering of eyes and proud stars can be found in Touch Your World, a beautiful, fantastical place in which the observer’s imagination is invited to roam. Courtesy of Timothy Taylor Gallery, 15 Carlos Place, London W1K 2EX; 020 7409 3344; timothytaylorgallery.com

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FUNDAMENTALS

£100K-200K HIROSHI SUGIMOTO, GALÁPAGOS ■

1980, GELATIN SILVER PRINT, 119.4x210.8cm, EDITION OF FIVE

Hiroshi Sugimoto is a multi-disciplined contemporary artist who blurs the lines between photographer, painter, installation artist and architect. Born in Japan, he moved to New York in 1974 – but his work is global. Galápagos is from Sugimoto’s ongoing Dioramas series, which he started in 1976. Although appearing to be a photograph of animals and landscapes in the natural world, the crisp, detailed, large-scale, monochromatic image is, in fact, an artifice: the series reproduces taxidermied animals and distant, wild landscapes, which were displays and models Sugimoto had seen in natural history museums. Sugimoto is fascinated by the power of the photograph to create a history, a false sense of reality, a fossilisation of time. Courtesy of Pace Gallery; pacegallery.com

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ART INVESTMENT

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ART INVESTMENT

FUNDAMENTALS

£200,000-1M

1990, WELDED STAINLESS STEEL, 183x183x244cm, EDITION OF SIX

In 1956, Lynn Chadwick won the coveted International Sculpture Prize at the Venice Biennale and, in doing so, became the

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youngest recipient of the award and beat the favourite, Alberto Giacometti. Eschewing the more traditional approach of sculpting in marble, wood or bronze, in 198990, Chadwick produced a series of ‘beasts’ constructed from triangular steel plates welded around an armature of steel rods. With their strained necks, arched backs and howling

mouths, Chadwick had created animated creatures that were alert and primal. Four of these monumental, angular, metal beasts were juxtaposed against the classical Royal Academy architecture when installed in the Annenberg Courtyard in April 2014. Image courtesy of Lynn Chadwick and Blain|Southern; blainsouthern.com H

PHOTOGRAPH by Peter Mallet

LYNN CHADWICK, HOWLING BEAST I


FUNDAMENTALS

How to Master the Arts Nazy Vassegh, CEO of London’s renowned Masterpiece art fair, tells MARK HEDLEY a few things about bringing the capital some of the world’s best museum-quality fine art, antiques and design HOW HAVE YOU SEEN MASTERPIECE CHANGE SINCE YOU JOINED?

IF YOU HAD THE MONEY, WHAT WOULD YOU HAVE BOUGHT FROM 2014’S FAIR?

I joined the fair in January 2013, a few months before its fourth edition. When I joined, it was still in the early years of its development, so there was an opportunity to really shape the trajectory of Masterpiece and establish its place among the finest art fairs in the world. Over the past few years we have ensured that the fair has developed a growing appeal for collectors, curators and art enthusiasts alike. One of the biggest changes, in my opinion, has been the perception of the fair and how significant it has become in the annual art world calendar.

Collisart exhibited an extraordinarily beautiful painting named Miss Bentham (Early Standing Nude) by George Bellows [pictured overleaf]. The piece has recently been sold to the Barber Institute in Birmingham, where it will be on display for visitors and students at Birmingham University, but I would have loved to own it. I also think Hemmerle has such exquisite designs; its use of intriguing and unusual materials is at the forefront of jewellery design and I would love to own a piece.

IN WHAT AREAS HAVE YOU SEEN THE GREATEST GROWTH?

Our visitor numbers have gone from 18,000 in 2010 to more than 35,000 in 2014; last year, our exhibitors sold more than £100m worth of art as a result of the fair, and our annual charity gala, which has been held in aid of various charity partners, went from generating proceeds of £100,000 in 2010 to almost £1m last year.

HOW DO YOU DECIDE WHO EXHIBITS?

Every item for sale at the fair must be a masterpiece – by this we mean that it is an original work with superb provenance that represents the very best of its kind in its particular artistic category. Cross-collecting is at the very heart of what we present to the public, so we aim to work with dealers from a diverse range of disciplines who are leaders in the field. We ensure that, through our extremely stringent vetting process, the fair presents only the finest items. We have 26 vetting committees with almost 150 experts in all different categories. We start the vetting process several months in advance of the fair, and then, just before the opening, a day is dedicated to inspecting every single object. WHAT ARE YOU EXCITED ABOUT SEEING IN THIS YEAR’S SHOW?

I am excited to welcome a selection of new dealers to the fair this year – Richard Green (London), Kraemer Gallery (Paris), Jacques de la Béraudière (Switzerland), David Gill (London), Van Cleef & Arpels (Paris),

Nukaga (Japan) and Nilufar (Italy). It is always a pleasure to welcome new galleries to the fair but it is also exciting to see all our returning exhibitors, many of whom have exhibited at Masterpiece since the very beginning. First-time exhibitor Nukaga Gallery is bringing an exceptional work by one of my favourite artists Marc Chagall, which has been in a private collection since 1985. The work is called Les fleurs sur le toit, and it was painted in 1925. I am very excited to see this at the fair. WHAT WAS THE HIGHLIGHT OF YOUR CAREER AT SOTHEBY’S?

I had the privilege of working with some extraordinary and dynamic people during my time at Sotheby’s and it was both an enriching and rewarding period of career development. In terms of the objects and pieces I saw day to day it is extremely hard to pick one highlight, but I do remember visiting one client who lived in a very unassuming semi-detached house and being confronted with a work by Claude Monet. You never know what you will come across and that was a highlight in itself. WHAT TREASURE ASSETS ARE YOU MOST INTERESTED IN PERSONALLY?

My husband [Simon Baker, marketing director at Gieves & Hawkes] and I are always looking for pieces that bring colour to our home, whether it is a painting or a piece of furniture. I like to invest in pieces which resonate with me on an aesthetic, historical and cultural level. The piece most important to me is by Farhad Moshiri, an Iranian artist who uses pop art imagery to discuss Western and Iranian cultures. HOW DID YOU START INVESTING IN ART?

◀ THE ONE AND ONLY: An ebony bangle with detailing in amber, copper and white gold by Hemmerle. The design house treats its jewellery as works of art, making one-of-a-kind pieces only.

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Having worked in the auction world for many years I wanted to forge a path of my own, which led to me setting up my own advisory firm, focused primarily on 20th- ▶


MASTERPIECE LONDON NAZY VASSEGH

PHOTOGRAPH by Alex Board; jewellery by Hemmerle

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MASTERPIECE LONDON NAZY VASSEGH

FUNDAMENTALS

The acquisition of art runs along a spectrum from pure passion through to strategic investment. Diverse motivations make every collection unique ▶ century

art. Owing to the network I had built, the scope of my advisory very quickly expanded into other fields. I soon found myself on the mayor of London’s advisory board for arts and culture and consulting on the Shubbak Festival for contemporary Arab art, among other things.

HOW DOES INVESTING FOR A COMPANY DIFFER TO AN INDIVIDUAL CLIENT?

Because the acquisition of art runs along a spectrum from pure passion through to strategic investment, advising is entirely bespoke and varies regardless of whether it is a private individual or organisation. The diverse motivations behind collecting make advising both exciting and challenging and make every collection unique. HOW IMPORTANT IS PHILANTHROPY FOR NURTURING YOUNG TALENT?

WHICH CORPORATIONS ARE MOST EFFECTIVE IN THIS AREA?

The Sainsbury Wing at The National Gallery has been such a successful example of a corporation effectively funding the arts – the recent exhibition of works by Rembrandt there was extraordinary. H This year’s Masterpiece London runs from 25 June1 July. For more information: masterpiecefair.com

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add in grey bg

▲ STAND-UP GIRL: George Bellows painted the oil-on-canvas Miss Bentham (Early Standing Nude) in 1906 and Andy Warhol owned the painting in the mid 1980s.

PHOTOGRAPH (Miss Bentham (Early Standing Nude) by George Bellows, courtesy of Collisart

It has a significant role to play in the contemporary art market. The financial climate is such that it is more difficult for those starting out to fund their own work, thus support of any kind is invaluable to creating the masterpieces of the future. In addition, when arts funding was cut in 2010/2011, philanthropists had an even greater role to play in supporting our national art galleries and museums. Keeping these galleries free for the public to visit is such an important resource for educating and nurturing young artistic talent.


hold

success

in both hands For the noblest ancient Greek huntsmen, beautiful prey was to be caught forever in silver and gold. Today’s hunters strive as hard, but seek their prey in the great deal or good investment. Immortalise your past victories. Secure your future glory.

invest for the future: invest in the past 14 -16 Davies Street London W1K 3DR +44 (0)20 7493 0806 www.kallosgallery.com


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R E WA R DS

If I do what he says, I’ll be driving straight into the tropical wetlands of the Everglades NEED FOR SPEED . 086 WATCHES . 085 | MOTORS . 086 | CYCLES . 097 | YACHTS . 101 | TRAVEL . 102 | COUNTRY PURSUITS . 110 | PROPERTY . 116


WATCHES VACHERON CONSTANTIN

REWARDS

Making Your Sweet Time From number plates to silk pyjamas, surely personalisation is all a bit naff? Not when it comes to watches, says ROBIN SWITHINBANK, who really rather likes Vacheron Constantin’s personal touch

I HAD AN epiphany the other day. I realised just how much I despise monogrammed cuffs. Nothing in the world says you think yourself wonderful quite like a monogrammed cuff. The same goes for towels, bathrobes and just about any form of personally embroidered linen, with the possible exception of handkerchiefs. If you’re going to carry a snot rag around in your pocket, it’s common decency to let the world know to whom it belongs, and therefore whom to avoid. It’s not that I have anything against personalisation, per se. There’s nothing wrong with statements of individuality, and far less with adding personal touches to precious items of luxury. In fact, I own a Montblanc Meisterstück fountain pen with my initials engraved into the nib – I love it. The thing is, you would never know they were there unless I’d told you, which is the point. Making something personal is for you. Not the guy in the next cubicle; not the girl next to you at the bar; and not the people on the train who get your initials full in the face every time you reach for the rail. Personalisation is best done discreetly. Which brings me neatly to Vacheron Constantin’s Quai de l’Ile, a watch with more than 700 possible combinations of movement, metals, dials and straps, all of which can provide far better personalised decoration for your wrist than any daft form of cuff trumpetry. Picking a favourite requires a bit of a

The watch has more than 700 possible combinations, all of which provide far better decoration for your wrist than any daft form of cuff trumpetry

fooling around with the configuration tool on the brand’s website. I ended up with a debonair Quai de l’Ile Day-Date and Power Reserve, with a palladium and titanium case, a grey dial and a brown alligator strap. I even put my initials on it, tucked away on the case back where no one can see them, of course – save my grandchildren when they come to divvy up my belongings one day. Now that’s personalisation done properly. Watchniks will note the Quai de l’Ile isn’t a new watch, which indeed it’s not. It was launched in 2009. But what they may not know is that on launch it was almost universally shunned by the UK’s watch retailers, who thought their customers wouldn’t be prepared to wait three months

for it to be delivered. This is crazy; it’s a beautiful watch, made by one of the most venerable Swiss watch houses. Besides, if a man can wait a year for a pair of bespoke shoes, why not a few months for a watch? If you want a Quai de l’Ile, you can go to Vacheron’s Bond Street store or to one of its in-store boutiques at Harrods and Watches of Switzerland, Regent Street, to build your own watch. You still have to wait, mind, but then (grimace) the best things come to those who do. When it does come it will be personalised to you. And what’s more, when you wear it, no one will think you’re a narcissistic prat. H Price: £37,500 (for the model described). For more info, see: vacheron-constantin.com

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Need For Speed A car as big as Bentley’s new Mulsanne Speed needs the roads to match. MARK HEDLEY travels to the US to take the beast out on Miami’s tarmac “START TURNING RIGHT in about 100 yards.” Derek Bell MBE is sitting next to me. I wouldn’t normally argue with a man who has won the Daytona 24 three times and Le Mans five times. The problem is, if I do what he says, I’ll be driving straight into the tropical wetlands of the Everglades. This is not something I’m keen to do in a car that costs the best part of £300,000. “You mean left, yeah?” I check. “Shit! Yes, left, LEFT!” he urges. “You’d have thought I’d have got that by now.” Apart from this minor misdirection, the racing legend is an excellent tutor. He’s been flown out to Florida to help prove to us motoring hacks that the new ‘Speed’ edition of the Bentley Mulsanne lives up to its supplementary moniker. We didn’t take much convincing. For Bentley’s flagship product, the firm’s prolific 6.75-litre V8 has been called back into action. It’s been down the gym, hit the supplements (in the form of two turbochargers) and now produces a staggering 1,100Nm of torque at just 1,750rpm. There’s only one production car that has more, and that’s the Bugatti Veyron. With 530 horses on hand, the Speed can reach 60mph in just 4.8 seconds, and jauntily knock off 190mph, if space allows. As it happens, space is one thing we’re not short on. For a car as big as the Bentley, you need to test drive it in a country that ▶

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MOTORS BENTLEY

MULSANNE SPEED ■ ■ ■ ■ ■

Engine: 6.75-litre V8 Power: 530bhp at 4,200rpm Torque: 1,100Nm at 1,750rpm Top speed: 190mph Cost: from £252,000

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One Estate Three world-class events

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MOTORS BENTLEY

REWARDS

▶ can

match it. That’s why we’re in the good ol’ US of A. More specifically, at the Dade-Collier airfield. The abandoned 10,500ft slab of tarmac was once destined to join five others in an ambitious plan to make the world’s largest airport. Then some bright spark realised that whacking a bloody great airport in the middle of an area of natural beauty and rare wildlife was not the best idea. That, and the unfulfilled promise of supersonic flight domination, means the airfield is now used as a test centre and, for us, a big-kids’ playground. Throwing the Mulsanne Speed around a Top Gear-esque track is certainly a unique way to see what the car can really handle without fear of losing your licence – or your life. For something that weighs more than three tonnes, there’s no use trying to pretend this is a nimble track-day car. But equally, this is not some giant oil tanker where you have to radio ahead to the authorities before making a turn. It’s extremely responsive and has far less body roll than you would expect for such a sizeable car. The power is reassuringly immediate and seemingly endless; not in a supercar slap-in-the-face kind of way, more in a picked-up-and-gently-thrown-by-agiant kind of way. Hooning around a track is great fun, but we have to be realistic, most Mulsanne

The power is reassuringly immediate and seemingly endless; not in a supercar slap-in-the-face kind of way, more in a picked-up-andthrown-by-a-giant way

Speed owners won’t drive like this. In fact, some may not drive it at all. And with good reason, for the rear is a wonderful place to be. There are all the trappings you’d expect from a luxury limo – from temperaturecontrolled seats, which will also give you a massage if you press the right button, to TV screens and wireless headphones. There are aeroplane-like tray tables, which deploy electrically at the push of the button. But rather than a saucer for your G&T, they reveal an Apple keyboard and a slot for your iPad. And for the first time in a Bentley, there’s the option of on-board wifi. In the rear-left seat you can control the passenger’s chair in front of you to give you more legroom – or just to provide you with amusement as you mess with their seating position. How about a glass of champagne to ease the inconvenience of a long journey? Press another magic button and a frosted glass screen between the rear seats descends, revealing three crystal champagne flutes and a two-bottle fridge. The stems of the flutes, designed for Bentley by David Redman London, slope down into a fivespoke base, echoing the Speed’s alloys. It’s all very Bond, but then, that shouldn’t be surprising given that Ian Fleming originally had 007 driving a Bentley long before any Astons had a look in. Indeed, Mr Bond is no stranger to our next destination – Miami. Seeing the ▶

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MOTORS BENTLEY

REWARDS

▶ sweeping

aerial shot at the beginning of Goldfinger was about as close to the city as I had been before. Although I was a first-timer here, the Mulsanne Speed certainly seemed right at home rolling down the beachfront with the likes of the iconic Hotel Fontainebleau providing an appropriately glamorous backdrop. In town, the Speed will adapt quickly to its conditions given the lack of, well, speed. When you’re pootling along in traffic, its cylinder deactivation system can seamlessly switch the engine down from eight to four cylinders. The result is a car that’s even quieter, and a lot more efficient. Don’t get me wrong – it’s no BlueMotion. However, 28.4mpg shouldn’t be sniffed at from a vehicle with the potential fuel demand of a mid-sized market town. In fact, the latest iteration of this prolific powerplant is 13% more efficient than its predecessor, giving you an extra 50 miles from one tank if you’re easy with the right foot.

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Pulling up at our oceanfront hotel, the fittingly glitzy St Regis Bal Harbour, the Mulsanne Speed cuts a striking silhouette against the snow-white building. There are few cars that have the presence of the Speed. Its new directional 21in wheels – individually machined from solid forged blanks – are designed to look like they’re moving even when the car is standing firmly still. At the rear, the twin exhaust pipes reflect the car’s iconic

It takes 298 people more than 400 hours to complete each Speed. It’s a lot of effort to make something that comes across as, well, effortless

floating ellipse lights – and have rifled finishers that add a sporting twist. The detailing continues inside. You need to see, feel and smell it to fully understand the Speed, but until Apple creates the technology for that, you’ll have to make do with some numbers. It takes 14 bull hides cut into 593 pieces to trim the cabin’s new two-tone interior, where diamond-quilted leather even lines the door panels. The steering wheel alone takes five hours – along with 10ft of thread – to make. The wood set comprises 24 pieces, all sourced from one tree. And it takes 298 people more than 400 hours to complete each Speed. It’s a lot of effort to make something that comes across as, well, effortless. It really is a work of art. The week after our departure the world’s great and gifted would descend on Miami for Art Basel. Little did they know, they’d missed the main event. H For more information, see bentleymotors.com


REWARDS

A Baby Boomer It may not match up to the tiny-yet-mighty supercar hype, but the Abarth 695 Biposto is still a powerful city car, says TOM STEWART

SUPPOSE YOU’RE IN the market for a high-end hi-fi system. You obviously want it to be powerful, sound amazing, and have looks to match. And if you’re spending a substantial sum – a moment’s online research reveals that one can blow more than $1m just on a pair of speakers – you’d probably expect a good measure of exclusivity, too. Or, of course, you could spend a great deal less and still achieve almost all of the same objectives. It’s a similar situation with what I’ll loosely refer to as sportscars. You want it to be powerful, sound amazing, be a headturner, be exclusive and so forth, but with a few current supercars also topping the million mark in any currency you choose, you may wish – or indeed need – to lower your sights a little. With ownership of the more mainstream prestige models becoming increasingly ubiquitous, automotive exclusivity is hard to achieve, at least without buying from a tiny specialist manufacturer with a dealership network that barely extends beyond the factory gates. Enter the £32,990 Abarth 695 Biposto. Based on the madly successful Fiat 500 city car, this new two-seater Abarth is billed as ‘The World’s Smallest Supercar’. Whether it qualifies as a supercar per se is debatable, but it’s definitely a sportscar. But first a brief explanation for the uninitiated who’d expect to find Abarth next to a shower. These days Abarth is a

My early assumption that the Biposto would be a noisy, unforgiving, bonejarring road-racer with a tricky clutch and gear change proved wrong 92

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wholly owned sub-brand of Fiat, and there are around 17 different Abarth variants all based on the aforementioned 500. The company was founded in Bologna in 1949 by the Viennese-born Karl Abarth, although by the time he’d relocated to Turin a few years later he’d become ‘Carlo’. Initially the firm turned out tuning parts for Lambrettas and esoteric Italian racing cars, but became best known for the Fiat 500-based, high-performance Abarth models. Fiat then bought Abarth in 1971 and it became the Fiat Group’s racing department, much like BMW’s M division or Mercedes-Benz’s AMG. Back to the present, the new 695 Biposto weighs a little under a tonne and its 4-cylinder, 1.4-litre turbocharged engine makes a healthy 187bhp, all transferred via a 5-speed gearbox (there’s a choice of two) to the Torque Transfer Controlled (TTC) front wheels. With 0-62mph in 5.9 seconds and a 143mph top speed it’s not Ferrari fast, but standard components made by some of the most respected names in the business, for example OZ wheels, Brembo brakes, Extreme Shox adjustable suspension, Sabelt seating and an Akrapovic exhaust system all add to the car’s sporting credentials. Fittingly, the Biposto’s press launch was staged at a race track – the Varano circuit in the foothills of the Italian Apennines just south of Parma – but for reasons best known to our hosts, only very limited driving was permitted on the public road. Still, that seemed a sensible place on this damp, grey day to acquire an initial feel for the car, so off I set accompanied by an Abarth minder as required. My early assumption that the Biposto would be a noisy, unforgiving, bone-jarring road-racer with a tricky clutch and gear change, fidgety steering and a rock-hard brake pedal proved very wrong. With sufficient revs, moving away from a standstill was easy enough, as was the ▶


MOTORS ABARTH

ABARTH 695 BIPOSTO ■ ■ ■ ■ ■ ■

Engine: 1.4 litre Power: 190 horsepower at 5,500rpm Torque: 250Nm at 3,000rpm Top speed: 143mph Weight: 997kg Cost: from £33,000

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MOTORS ABARTH

REWARDS

▶ standard 5-speed shift mechanism, while ride quality and noise levels were quite acceptable. No, it wouldn’t be my car of choice for taking the mother-in-law out for a Sunday drive, and nor would I relish the thought of a long motorway slog in one – the ride might prove too harsh for that – but the wide-tracked 695 gripped tenaciously, displayed fine body control, steered decently and darted between turns with impressive alacrity. For my first track session I selected another basic-spec Biposto, with standard 3-point seatbelts, a conventional gearchange, standard instrumentation and electric windows made from glass. About half way round my first lap (0.73 miles) I

It was more an exercise in Scandinavian-style winter driving than highspeed tarmac heroics, but at least the car is sweetly balanced front to rear 94

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realised that the grip I’d enjoyed on the public road was absent from the track. It was more slippery than a jellied eel, and so with the TTC system working overtime my first stint was more an exercise in Scandinavian-style winter driving than high-speed tarmac heroics, but I did at least learn that the car is sweetly balanced front to rear. For a further £8,500 the Biposto can include a ‘dog-ring’ gearbox, which permits such speedy upshifts that expert drivers needn’t use the clutch. It’s the first streetlegal production car with this type of transmission and the price also includes a lightened flywheel with a racing clutch plus a few other sporty bits. A so-equipped version was available for my next track session, and this car also boasted £1,775 polycarbonate sliding windows, a £3,700 Carbon Kit and a £3,700 Track Kit that includes LCD racing instrumentation with a digital datalogger, carbon fibre seats with 4-point harnesses (and a crash helmet). I didn’t check, but it may also have featured the £2,990 Special 124 Kit with aluminium bonnet and titanium water, oil and fuel caps, raising the car’s total price to a whopping £53,660, and

this is without rear seats, aircon or radio, none of which are available on this model. Anyway, ten minutes later I’ve strapped myself into the racing harness, once again admired the sheer beauty of the exposed gearshift mechanism, and I’m away. By now the track surface is a little less greasy, but I can still feel the TTC doing its thing at every corner. After the standard gearchange, the dog-box’s short-throw H-gate action takes getting used to, and it’s less smooth, especially on the downshift, but upshifts are super-swift, even with the clutch. Sportiness isn’t inherent in the Biposto’s steering, however. Feeling much like a £13k Fiat 500’s, it’s fine, but it lacks the directness and precision of a pukka track car. Those big-bore tailpipes sound throaty, but far from intrusive. For what it’s worth, it returns 45.6mpg on the EU combined cycle, and 145g/km of CO2. It comes in any colour you want, so long as it’s satin grey. The 695 Biposto may not quite qualify for supercar status, but it is the speediest, most exotic and indeed priciest city car out there. It’s also a head-turner and, by its very nature, won’t be common in EC3, SW3 or anywhere else. I can’t help but like it. H For more info: abarthcars.co.uk


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REWARDS

CYCLES LIKE BIKE

The Hipster Where watches have Baselworld, and jewellery has the Biennale de Paris, now cycles have LikeBike Monte Carlo. This glamorous bike show brought together the world’s most innovative cycles. From the latest e-bikes to hipster brands so underground they haven’t even heard of them in Dalston, they were all there under one large glass roof in Monaco. Among them was the Coren [pictured]: made of high tensile strength carbon fibre, it weighs less than 7kg. But it’s the avantgarde styling that really sets it apart. Well, that, and the frankly eye-watering price tag, of course. £19,918, cycleexif.com ▶

Frame & Fortune This month, LikeBike Monte Carlo brought together the world’s best cycles under one roof. With prices regularly hitting five figures, these are not for fair-weather cyclists 97

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CYCLES LIKE BIKE

REWARDS

The Lazy Boy There’s a reason the Stromer ST2 comes in stealth matt black – it’s hiding a secret. In fact, quite a few of them. First, it has an engine: a motor with 500W of power and 35Nm of torque which will help propel you to 28mph. It also has an integrated user-interface with real-time telemetrics, GSM mobile connectivity, GPS and Bluetooth, as well as the ability to communicate with your smartphone. From your Stromer App, you can fine-tune the bike’s performance settings and lock it courtesy of the onboard anti-theft protection technology. Beyond all the electronic wizardry, the tyres have integrated puncture protection, and the carbon components ensure that it’s far lighter than most e-bikes, too. £4,510; stromerbike.com

The Racer Road bikes don’t come much more desirable than those made by Time. The French manufacturer has always been at the forefront of carbon technology. It was the first bike brand to offer carbon-fibre custom frames – and the rest of the cycling world has been playing catch-up ever since. At LikeBike it’s exhibiting this, the Skylon AKTIV Plasma. Aside from everything you’d expect from a Tour-ready bike, it’s the ‘AKTIV’ part that’s the real hook, here. It refers to the tuned mass damper: a sandwich of spring blades and damper that absorbs and eradicates vibrations. What this means for you is reduced muscle fatigue and a more comfortable bike that doesn’t compromise on performance. £9,510; time-sport.com

The Off-Roader If you can’t get enough of those viral YouTube clips of Red Bull Rampage nutters hurtling down a mountain side at a rate of knots and you think, ‘yes, that’s a bit of me’, then this bike is definitely for you, too. Rotwild specialises in serious cross country kit: hardcore machines that will leave your body broken long before they are. This model has been designed alongside AMG, the high performance division of Mercedes-Benz. The full-suspension R.R2 FS is built with MMT2 carbon technology, making it super lightweight despite all the on-board hardware. The combination of wheelbase and steering angle gives the bike extremely confident handling downhill, which helps save your energy for all those gnarly tricks you’re gonna pull, right? H £5,548; rotwild.de

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with yields of up to these 4 % netprivately guaranteed. Price for villas 1 to 9 have bedroom villas start from US$1.33 million. As well as every luxury imaginable, developed been constructed using time-tested indigenous techniques with yieldsthese of upprivately to 4 % netdeveloped guaranteed.villas Price have for 1 to 9 bedroom villas start from US$1.33 million. As well as every luxury imaginable, been constructed using time-tested indigenous techniques with materials from sustainable sources adapted to preserve the integrity of the environment and the local communities. with materials from sustainable sources adapted to preserve the integrity of the environment and the local communities. Sustainable-Local-Organic-Wellness-Learning-Inspiring-Fun-Experiences

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YACHTS PRINCESS

REWARDS

The Swell of Success One of Britain’s best yacht builders is coming to town. MARK HEDLEY explains how you can get on board

IN THE LUXURY world, certain brand names just fit. The rolling ‘r’s of RollsRoyce; the tick-tock inflection of Patek Philippe; and when it comes to superyachts, Princess has it spot on. The sibilance of the word somehow resonates with the swish of waves lapping against the hull. It’s easy to feel poetic sitting aboard a Princess – especially if you’re moored in the warm waters of the Cote D’Azur. Or, even, in the not-so-warm waters of the River Thames.

It’s easy to feel poetic sitting aboard a Princess – especially if you’re moored in the warm waters of the Cote D’Azur. Or, even, in the not-so-warm waters of the River Thames

Don’t believe me? Why not check one out for yourself. From 8-10 April, the London Yacht, Jet & Prestige Car Show will be taking place – and the star of the show will be Princess. Celebrating its 50th anniversary this year, the Plymouth-based brand will have three of its yachts – the V72, 88 Motor Yacht and the 98 Motor Yacht – moored at St Katharine Docks. H If you’d like to come aboard, call 020 7499 5050 or email london@princess.co.uk for an appointment.

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REWARDS

The Lion’s Share CATHY ADAMS tries not to get eaten by the king of the jungle

while living like royalty in the Tanzanian Serengeti, before finding untouched coral reefs and tropical Maasai island paradise on Pemba

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TRAVEL SAFARI

WHEN YOU’RE OUT in the middle of the scorched Serengeti Plains after dark, it’s probably lion-feeding time – and the last thing you want is a flat tyre. “Just keep watch for them while we fix the tyre,” David, our safari guide, tells me casually, flipping me his binoculars. A moment later there’s a rasping roar in the distance that, despite his reassurances of it being “about a kilometre away”, is pretty much the most frightening thing I’ve ever heard. It would be a real shame to get eaten by a lion before nailing the rest of the big five, after all. Safely back at base – if you can call the Four Seasons Safari Lodge Serengeti a ‘base’; it’s the most palatial camp you’ll ever see – we’re mulling over our brush with death over a dawa cocktail made with honey, a Tanzanian speciality. The permanent hotel to the north of the massive national park is the best – and most luxurious – place to break your safari virginity, as there’s not a dusty tent or fire pit in sight. While it’s still strikingly exotic, pitched right in the middle of the bush with safari animals roaming all around, it’s also full of all the luxury Four Seasons comforts you’d hope for, that make the transition to hanging out with the big five in close quarters just that little bit easier. Rooms and suites are expansive and tasteful, with dollops of African style studded throughout: Maasai masks and wicker baskets hang from the walls, and there are colourful printed rugs and wooden four-posters with crisp white sheets. Then there’s the curved infinity pool overlooking one of the Serengeti’s many watering holes. (For the record, in four days I saw nothing – but was reassured that in dry season, elephants regularly come to drink.) Some suites have infinity pools on their balconies too, which – as we learn – make the perfect spots to enjoy sundowners, while spotting animals, overlooking a spectacular sunset. Meanwhile, the excellent spa, set across several stilted buildings, doles out luxury treatments using Maasai traditions – we spend one afternoon being massaged with a kifaa, a Swahili instrument that looks a lot like a wooden salad server – while its restaurants would be considered top drawer in the middle of a busy city, never mind in the middle of one of the world’s biggest

ecosystems. The Maji Bar, which overlooks the watering hole (and mile after mile of brown soil and acacia trees, naturally) does cocktails and light dishes, while Boma Grill serves traditional African cuisine – the bobotie, a kind of African casserole, was excellent – with added Maasai dances and entertainment. And if you really want to go all out, the vast private wine cellar, stocked with wine from boutique South African producers, offers a luxury private area to dine in. It’s the safari experience that stuck its hand in a plug socket. But then again, Tanzania knows big. To put it in context, the east-African nation is twice the size of California, and you’d have to roll Denmark, France, the UK and the Netherlands into one to fit inside its huge borders. That goes part of the way to explaining why it takes as long to fly from the Serengeti to the Indian Ocean coast as it does to get back to London – we touched down no fewer than five times, swapping one tinny propeller planes for another, running across one piece of tarmac to the next to make it to Pemba, a tiny desert island just north of Zanzibar. Pemba, known as ‘the green island’ in Arabic, is best known for clove production, and the whole island has a faint whiff thanks to thousands of the spices drying by the roadsides. It’s more rugged and remote than Zanzibar, closer to the border with Kenya, and the beaches are more rough and ready than its neighbour’s. We’re en route to Fundu Lagoon, a boutique hotel on the south-west coast that’s regularly touted as one of the most luxurious beach boltholes in Africa. True to form, it’s only accessible by speedboat, and you’ll arrive bumping across the ice-clear shallow waters – watch out for the jellyfish below – up to the wooden jetty. ▶

Safely back at the most palatial base you’ll ever see, we mull over our brush with death over a dawa cocktail made with honey – a Tanzanian speciality 103

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TRAVEL SAFARI

REWARDS

▼ PLAIN LUXURIOUS: (clockwise from main) the pool at Fundu Lagoon, Pemba; the jetty at Pemba; a Serengeti lioness at sunset

▶ The

18 rooms – made up of designer canvas tents under thatched roofs – at Fundu are all hidden within the trees, with sun decks and slices of private beach facing out to the bay. They’re so private that often the only company you’ll have is a family of vervet monkeys and occasionally a snake wrapped around a tree, and it’s a peaceful walk along the sand to get anywhere. Thanks to its boutique size, Fundu’s atmosphere is convivial, but it doesn’t have to be. You could have a private candle-lit dinner out on the beach, although after a day of lying prone on a sun lounger, it’s more fun to mingle out by the bar at

Tanzania knows big. The east-African nation is twice the size of California. Denmark, France, the UK and the Netherlands can all fit inside its huge borders 104

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sunset, snapping Instagram pictures with others and watching the sun dip underneath the water. Plus, on certain nights, there are wine-fuelled sunset dhow cruises and Swahili buffets, where tables are laid out on the jetty and lit by candles, with Maasai beats and dances to keep you from sleeping. The next morning, the hangover cure comes in the form of strapping on an oxygen tank. Not one to spend days on a sunbed recovering from safari overload, I’m about to take the plunge on my first dive. Fundu Lagoon is PADI-certified, and the waters around Pemba are lauded as some of the best for diving in Africa. There’s no better place to crush your diving cherry, even if you do have a cracking headache from cocktails the night before. We’re taken out by speedboat to the tiny Misali island (informally named ‘prayer mat’ island, as it faces Mecca), which is staggeringly photogenic. I dive down to almost 10m, swimming among untouched coral reefs and schools of neon-coloured fish, even prodding an octopus into life, after being reassured that it’s not poisonous. The marine life is almost as rich as that

on land in the Serengeti, and the bonus is nothing is big enough to swallow me and the dive instructor in one gulp. I got through a lot of firsts in Tanzania. I’d come face to face with a family of lions, watched a cheetah tear strips out of a dying wildebeest and dived in some of the most unblemished reefs in the world. Tanzania, let’s hook up again, yeah? H

TRAVEL DETAILS Anderson Expeditions organises trips to Tanzania, including flights, transfers and hotels. It can also organise trips to other African countries, South America and Antarctica (+27 83 632 2893; andersonexpeditions.com). For more information and to book a stay at Fundu Lagoon, Pemba, visit fundulagoon.com. For more information and to book a stay at the Four Seasons Serengeti, visit fourseasons.com/serengeti.


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For moreFor information, more information, Forplease more contact: information, please contact: please contact: Rod Taylor Rod TaylorRod Taylor ManagingFor Managing Director, Director, Managing Soneva Private Soneva Director, Office Private Soneva Office Private Office more information, please contact: T: Thailand T: Thailand +66 (0) T: 816 +66 Thailand 469 (0) 827 816 +66 469 Maldives (0) 827 816Maldives +960 469 827 792+960 Maldives 6023792 6023 +960 792 6023 Rod Taylor E: rod@soneva.com E: rod@soneva.com E: rod@soneva.com Managing Director, Soneva Private Office www.SonevaPrivateResidences.com www.SonevaPrivateResidences.com T: Thailandwww.SonevaPrivateResidences.com +66 (0) 816 469 827 Maldives +960 792 6023 E: rod@soneva.com www.SonevaPrivateResidences.com


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Earth: The Final Frontier Abercrombie & Kent CEO, founder and danger-seeker Geoffrey Kent tells HANNAH SUMMERS about Nicaragua as an emerging luxury destination and why he canned the tour operator’s space travel arm GEOFFREY KENT HAS always lived on the edge. “I’d find the most dangerous thing you could do in the world, and do it myself,” the Kenyan-born founder and CEO of luxury tour operator Abercrombie & Kent says. The ex-Sandhurst officer also captained Prince Charles’s polo team, winning tournaments worldwide before a third (yes – third) coma forced him to quit. He soon found thrills in other ways, and over the past 50 years, Kent has established himself as a leading figure in experiential travel. “I’m the luckiest person alive; I’ve been doing what I wanted to do first, and then made it into a business,” he says. He’s not bad at it, either: last year, Kent was granted the Lifetime Achievement Award from US-based Travel Weekly, which he likens to the Oscars. If anyone should be telling us where to travel, it’s Kent. A&K STARTED AS A BOUTIQUE SAFARI COMPANY. HOW HAS IT EVOLVED?

We have our new Land Rover Adventures series, an off-road self-drive safari in countries including Namibia. There’s also our private jet series – the trip I’m escorting costs $135,000 each – and it’s sold out. There’s demand, so we’re looking at more off-the-beaten track destinations next. HOW MUCH DO YOUR CLIENTS SPEND?

Well, many change their mind every day they’re away. They’ll add $100,000 here or $50,000 there. One guy recently did South America – the Amazon, the Galápagos, Machu Picchu – in ten days. Many hedgies don’t care how much they spend. WHICH EMERGING DESTINATIONS SHOULD WE BE VISITING?

Myanmar/Burma is really taking off. A stunning landscape of temples and pagodas – we launched our own ship there five years ago. Then Central America. Mexico gets a bad reputation, but it’s fabulous: great food, lovely people, I’m not a bit afraid of

One guy recently did South America – the Amazon, the Galápagos, Machu Picchu – in ten days. Many hedgies don’t care how much they spend

travelling there. We’re doing a big project in Nicaragua. Sanctuary Retreats, my hotel brand, is opening a beautiful lodge there – it will definitely be the next hot place. WHERE IS YOUR TOP DESTINATION?

The top of Table Mountain is one of the best views in the world. Forget the hotel – all you need there is the ocean and the views. The other is very similar: Rio. Very cool ▶

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TRAVEL THE EXPERT

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Blackbird, and asked “what are the chances of having an accident in space?” He said, “100%. There’s a 100% chance that we will have an accident in A&K Space.” I went for a run, came back and decided to cancel the whole thing. I had to fire 20 people. HOW IS THE INDUSTRY CHANGING?

We’ve gone through the pre-internet phase; then internet where nobody wanted to speak to us; and now we want to speak with people again. Clients are cash rich, and time poor. No one wants a mistake – they need someone to blame if something goes wrong. WHAT TRENDS CAN WE EXPECT NEXT?

▶ people and

coconuts on the beach, and you have to stay at the Fasano Hotel. But a hot air balloon over the wildebeest migration is the best view in the world, seeing the lions and their predators in action.

I’m much more frightened going downtown in Miami and getting lost in a side street than I am wandering downtown Cairo. The real answer is nowhere, including where we’re sitting here in London, is safe today.

WHAT DO PEOPLE EXPECT FROM

HAVE YOU CONSIDERED SPACE TRAVEL?

LUXURY TRAVEL TODAY?

Around the time Richard Branson was pursuing Virgin Galactic we already had 20 people in place for A&K Space. I called my chief scientist who’d worked on the

Luxury is having an authentic emotional experience – that’s what people crave. They don’t want anything made up, and it has to change them in some way. YOU’VE EARMARKED EGYPT AS UP-ANDCOMING. WHAT’S THE DEMAND FOR ‘RISKY’ DESTINATIONS?

If somebody shot 20 people in Cairo today, you’d probably have 100% cancellation. You shoot the same number in Paris, and everybody says, “Oh, well. It’s Paris,” and everybody still goes. I’m Kenyan born, so

If somebody shot 20 people in Cairo, you’d have 100% cancellation. You shoot the same number in Paris, and everybody says, ‘Oh, well. It’s Paris’ 108

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It’ll be about multi-generational travel – people are going to want to travel more as a family. But the biggest trend will be privacy, and villas will be very popular. We have A&K Villas – the opportunity to stay in a beautiful villa but with all the services. We have a helicopter pick you up each day and we treat it like a safari camp, not just a villa. The second big area will be exploration by sea: an Antarctic expedition has to be one of the greatest things anybody should do. Finally, travel will be more philanthropic. A lot of clients are well educated and live in luxury, but want their kids to know where they came from, which was not luxurious at all. They want to see the real world. H For info: 01242 858 177; abercrombiekent.co.uk


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REWARDS

Drive on the Wild Side The remote Outer Hebrides may seem like an unlikely place to find a lap of luxury, but as SIMON BARR discovers, the greatest pleasure is out in the field with the thrill of the hunt

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COUNTRY PURSUITS SNIPE SHOOTING

PHOTOGRAPHS by Tweed Media

LAST NOVEMBER I fell in love. Not with a person but with a small, remote island in the Outer Hebrides called Taransay. Desolate, barren and bleak, the uninhabited island should have been a gloomy place, but it was without question the most stunning spot I’d seen. The soft, white sandy beaches and aquamarine waters were more gorgeous than any tropical island I had been to. Made famous after starring in the BBC series Castaway 2000, the tiny island became part of Borve Lodge Estate when it was purchased by pharmaceutical magnate Adam Kelliher in 2011 for a reported £2m. It sold in just five days. The island is pristine, with picture-perfect beaches, rolling machair meadows, gargantuan rocks and archaeological sites. The island has evidence of inhabitation going back some 10,000 years, and it has a firm place in Celtic pagan folklore. Throughout history it has been the site of fierce battles including the Massacre of Taransay in 1544, when the Morrisons of Lewis invaded. At one time there were three villages on Taransay but the population dwindled, with the last remaining family moving to the mainland in 1974 when the island became principally a place for sheep grazing. My wife Selena and I stayed at Borve Lodge itself, which is a plush eightbedroom pile on the neighbouring island Harris, and has just undergone a complete refurbishment under the direction of swanky London interior designers. Marbled wetrooms, million-thread count cotton bed linen from The White Company and views of the Sound of Taransay, all come as standard. This is five-star luxury in the last place you would expect it. Borve Lodge comes with a private chef and housekeeper and can accommodate up to 16 people. We had the place to ourselves, however. The estate also has four selfcatering cottages. Two are traditional island dwellings, but the other two are highly modern architecturally-inspired onebedroom spaces that need to be seen to be believed – ideal for romantic getaways. Getting to Harris itself is not as difficult as you might expect. There are two options – fly into Stornaway or drive 640 miles – almost the full length of the UK –

up through Skye and catch a ferry. From London this will take around two days, but the scenery out of the car window is spectacular. We opted for the latter. Road trips provide unrivalled thinking time and are a great way of shaking off work stresses before you arrive. ‘Walked-up snipe shooting on Taransay’ has to be one of my best diary entries of last year. Snipe are medium-sized, skulking wading birds with short legs and long straight bills. Both sexes are mottled brown with pale buff stripes on the back. Not only do they make excellent sport, they are also glorious to eat gently roasted. To reach Taransay, we boarded the estate’s landing craft, The Verley Anne. A leftover from the Falklands War, this rather eccentric vessel certainly aroused the inner child in me. After loading up the Argocat, dog and shotgun, we began the 40-minute voyage. En route we spied all sorts of indigenous wildlife including puffins, seals and a golden eagle. After a busy few months at work, I was ready for some clean Hebridean air, wilderness and solitude to help recharge my batteries. Time forgot this part of the world. Islanders are orthodox Presbyterian, meaning virtually all commercial activity ceases on a Sunday and a large proportion of the population attends church every week. Inhabitants do not drive their cars, draw their curtains or hang out their washing on this sacred day. I’m an atheist myself, but the slow pace and peace and quiet made the visit somewhat soul cleansing and completely restorative. Walking off the landing craft onto the untouched white sand was an experience in itself. It was so isolated from mankind but brimming with wildlife. I could not help reflecting on how different this Tuesday was to my usual weekdays in Mayfair. ▶

To reach Taransay, we boarded the estate’s landing craft. A leftover from the Falklands War, this eccentric vessel certainly aroused the inner child in me 111

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COUNTRY PURSUITS SNIPE SHOOTING

REWARDS

THE KIT ■

▶ The

estate manager, Steve Woodhall, and I had the 3,500-acre island to ourselves for the whole day. The plan was to work the spaniel and attempt to bag us lunch using a Zoli shotgun teamed with NSI SIPE 28g No 6 cartridges. “The island is teeming with snipe so only take the sporting birds,” warned Steve. Within seconds of quietly walking through the boggy grass we’d flushed our first snipe. But it was a jack snipe – which are protected and not on the quarry list. Slightly smaller with an ever so slightly shorter bill than the common snipe,

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they are easy birds to confuse. The key to telling them apart is by how they fly. The jack snipe flies low and rapidly drops down again, unlike the common snipe which zigzags and then flies off high. Being able to correctly identify quarry in the heat of the moment is no easy task, but an absolutely necessary one to get right every time. If in doubt don’t shoot. We continued walking along the coastal rocks and marshy grasslands in search of the diminutive bird. Veteran working cocker Archie knew his job inside out. He quartered the tussocky grass in front of us, not ever ranging more than 15 feet. As soon as he went too far I turned him on the whistle. A formidable duo, Archie and another spaniel worked to ensure every inch was sniffed out. Then, in a flash two common snipe lifted. Sadly, I wasn’t quite quick enough for the first bird but I killed the second with my second barrel. To succeed at this kind of shooting you need quick reactions. Anyone can fell a fat, homebred pheasant when flushed over your peg. This is the stuff of proper hunter-gatherer types. No frills. Just you, the shotgun and the wild bird. There aren’t any beaters or flaggers funnelling the bird over you. If you miss, that could be your only opportunity. My heart was pumping through my chest.

Zoli Expedition EL: £4,800; edgarbrothers.com NSI SIPE cartridges: £310 per 1,000; edgarbrothers.com Leica Geovid HD-B Binoculars: From £2,650; edgarbrothers.com Game: A Cookery Book by Tom Norrington Davis & Trish Hilferty, £19.99; absolutepress.co.uk

Out of the corner of my eye I spied another two snipe trying to make a getaway. Without a glimmer of hesitation, I connected the muzzle to the first bird’s flight line and then the second. To my astonishment, I’d shot a left and right. Another two birds for the pot. Enough for a well earned lunch for the three of us. Trying to ignore the distracting far-reaching views across to Harris, I concentrated on scanning the grass for the whirr of wings. The Zoli shotgun had proved itself as the perfect tool for the job. Lightweight and whippy, the Italianmade 12-bore connected to my cheek and shoulder with smoothness and accuracy. That night we took our harvest back to Borve Lodge, where the chef prepared the bag which was served with traditional bread sauce, tatties and roasted root vegetables. Somehow I knew the long drive home wasn’t going to be half as enjoyable as it was going the other way. We are already planning our trip back. H A day’s walked-up snipe shooting on Taransay costs £225 per gun (minimum booking £675). They can accommodate up to six guns in one party or have up to ten in two separate parties. Price includes transportation from the Lodge to the island and light lunch. For more information: Borve Lodge Estate, Borve, Isle of Harris, Western Isles HS3 3HT; 01859 550 358; borvelodge.com


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FOOD & DRINK REVIEWS

REWARDS

Big Hitting Pub Yes, yes, Guy Ritchie and Madonna may have once called this their manor, but CATHY ADAMS says The Punchbowl is so much more

I’LL GET THIS out of the way first: Guy Ritchie probably won’t be pulling your pint, Madonna probably won’t be on the mic and there’s definitely no Jason Statham getting into a ruck outside. You’ll have heard of The Punchbowl even if you’ve never been, as the Farm Street boozer has more of a storied history than most of Mayfair put together. Flogged by Ritchie in 2013, the only hallmark of its ’slebby history is a wall-hanging in the upstairs dining room that looks slightly like Madonna (on closer inspection, it’s not) and the hangers-on that sit about waiting for Vinnie Jones to turn up for his dinner (me). One of Mayfair’s oldest watering holes is a pub of two halves. The downstairs houses the Mayfair after-work crowd – hemmed in by a few chocolate labradors and some proper local ales – while the newly revamped, 1950s-style vintage dining room upstairs does a refined menu of hearty plates of pub grub for hungry hedgies. Much like the pub itself, the menu is playful: game features heavily, alongside more traditional dishes that you would expect to colonise a Mayfair pub menu.

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I started with the scallops (super soft, with miniature crispy chicken pieces) followed with poached monkfish, which came studded with bacon flavours courtesy of the pork jus dribbled over it, stickin-your-maw crunch pork popcorn and slow-cooked bacon. Granted, it’s not the most conventional combination of flavours, but when you’re trying to shake off your image as Mr Madonna’s pub, you should expect some flair. My companion got stuck into a pub favourite, a 300g rib-eye steak with truffle mash. He scarfed it like he hadn’t eaten for a month, and when I tried to wedge my fork into a piece, he abruptly batted it away, which says it all. (I made do with stealing his half of the buttered sprout tops with chestnuts, which tasted mostly and brilliantly like Christmas.) We were flung out into the gilded Mayfair air two hours later, thoroughly oiled by a bottle of South African red and the knowledge that we’ve probably graced the same air as Madge. Or, at least, that’s what I’ve told people. H 020 7493 6841; The Punchbowl, 41 Farm Street, W1J 5RP; punchbowllondon.com

PRIDE OF PLACE BY MARK HEDLEY When it comes to theatrical food, many restaurant critics are at best sceptical and at worst contemptuous. To me, this cynicism reeks of eating out for a living, ‘suffering’ from Michelin fatigue. Don’t worry – I’m not one of them. If I go out for a special meal, I want it to be exactly that – special. And I’ve found just the place. Launceston Place, to be specific. Located down one of those Kensington roads you would consider selling a kidney to live on, the restaurant is a cosy, understated affair. It’s the food that really takes centre stage here. Parmesan and truffle cream sandwich canapé, anyone? I’d happily take 20 – but three had to suffice. After all, I had opted for the tasting menu. There’s not enough space on this page for me to run through it all, but here are the highlights: pork jowl was a rich treat served with pork popcorn – essentially posh floaty-lite scratchings – and warm treacly plum. Smooth scallops and truffle were balanced with tarte apple and a crunch of sweet hazelnut. But the real showstoppers were the quail’s legs smoked on a bed of hay. They’re brought to you under a shroud of white smoke, contained in a glass cloche. Remove this, and smoke escapes revealing the morcels beneath. It’s like a poultry Stars in their Eyes. ‘Tonight, Matthew, I’m going to be Smoky Quailson.’ The backing singers are runny quail’s eggs which leak their yolks into toasty potato nests. Sorry, I’ve just salivated on my keyboard. Yes, it’s theatrical and OTT. But I certainly won’t forget it – or Launceston Place. That is surely the sign of a winning performance. H 1A Launceston Place, W8 5RL; 020 7937 6912; launcestonplace-restaurant.co.uk


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INTERIOR DESIGN KITCHENS

REWARDS

Smallbone, Big Package To paraphrase Alicia Keys, if you can make it here you can make it anywhere. Smallbone of Devizes has hit the big time in NYC. But when it comes to manufacturing, it’s all proudly made in Britain

EVERYONE LOVES A story of a plucky Brit hitting the big time across the pond. (Especially us Brits, of course.) But say the word ‘Devizes’ to your average American, and they’ll probably reply ‘Gazuntite’. After all, what does a sleepy town in Wiltshire have to do with the city that never sleeps? Well, let us set the scene. Situated on the prestigious 57th Street corridor, directly north of Carnegie Hall and overlooking Central Park, is a new luxurious skycraper. Simply named ONE57, this 90-floor 1,000-footer is squarely aimed at a suitably high-profile buyer. There’s even a five-star Park Hyatt Hotel on site. To stand out in the poshest part of town takes more than

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high-spec fixtures and fittings. It’s all about finish. And that is where Devizes comes in. More specifically, Smallbone of Devizes. For more than 25 years, Smallbone has been handmaking kitchens to the highest

To stand out in the poshest part of town takes more than the fixtures and fittings. It’s all about finish. And that’s where Smallbone of Devizes comes in

standards. From humble beginnings, the company has built its reputation to become known on an international scale as the luxury kitchen company. There’s no batch processing, here: it’s about highlyskilled crafstmen following time-honoured traditional joinery methods such as dovetailing, and mortise and tenon joints. It’s all still made in Britain – and the quality speaks for itself (but also comes with a 25year guarantee, in case you wondered). Fortunately you don’t have to buy a New York condo to have some Smallbone in your life. The company takes commissions for private homes – and doesn’t limit itself to your kitchen, either. H For more info: 020 7581 9989; smallbone.co.uk


Design by Philippe Starck

Sanitaryware, bathroom furniture, bathtubs, shower trays, wellness products and accessories: Duravit has everything you need to make life in the bathroom a little more beautiful. To find out more: Phone 0845 500 7787, info@uk.duravit.com, www.duravit.co.uk


Established 1897

ALBERT COURT, Prince Consort Road SW7 An impeccable two bedroom first floor lateral apartment which has been refurbished to the most exacting standards, within this landmark Grade II listed mansion building. The property has been interior designed to combine a sophisticated blend of luxury with the period proportions that this magnificent property offers. The layout of the apartment has been carefully configured to maximise natural light and captures attractive far reaching views. Accommodation comprises a reception room with double doors to a study area, an immaculate kitchen dining room, master bedroom with dressing room and ensuite shower room finished in Pietra marble, guest bedroom with ensuite shower room finished in Fior di Bosco marble and a W/C. State of the art audio visual systems allow complete control at the touch of a tablet. The building features grand communal areas and there is 24 hour concierge service. EPC rating B. Share of Freehold Guide price: £3,950,000 +44(0)20 7225 6509 nicholas.shaw@harrodsestates.com

KNIGHTSBRIDGE OFFICE: 82 BROMPTON ROAD LONDON SW3 1ER T: +44 (0)20 7225 6506 MAYFAIR OFFICE: 61 PARK LANE LONDON W1K 1QF T: +44 (0)20 7409 9001 CHELSEA OFFICE: 58 FULHAM ROAD LONDON SW3 6HH T: +44 (0)20 7225 6700 KENSINGTON OFFICE: 48-50 KENSINGTON CHURCH STREET T: +44 (0)20 3650 4600

HARRODSESTATES.COM @harrodsestates.com


Established 1897

THORNWOOD GARDENS, Kensington W8 A beautifully presented two double bedroom apartment (1,570 sq ft / 145.8 sq m) on the ground floor of Thornwood Lodge, which forms part of this private gated development in the heart of Kensington. The property benefits from a very spacious reception room of almost (460 sq ft / 43 sq m) and a well-equipped kitchen/ breakfast room. There is also a front patio off the reception room and a rear patio off the master bedroom. Thornwood Gardens is a gated, recently built development which is arranged around an open garden square with 24 hour porterage, security and secure underground parking. Located off Kensington Church Street, between Notting Hill and Kensington High Street, the property is ideally situated for all the local superb amenities and is also within a few moments’ walk of Holland Park. EPC rating C Leasehold: approximately 999 years remaining Guide price: £3,595,000 +44(0)20 7225 6509 nicholas.shaw@harrodsestates.com

KNIGHTSBRIDGE OFFICE: 82 BROMPTON ROAD LONDON SW3 1ER T: +44 (0)20 7225 6506 MAYFAIR OFFICE: 61 PARK LANE LONDON W1K 1QF T: +44 (0)20 7409 9001 CHELSEA OFFICE: 58 FULHAM ROAD LONDON SW3 6HH T: +44 (0)20 7225 6700 KENSINGTON OFFICE: 48-50 KENSINGTON CHURCH STREET T: +44 (0)20 3650 4600

HARRODSESTATES.COM @harrodsestates.com


HEDGE LEGEND JAMES SIMONS

E N D P L AY

HEDGE Legend # 1

J I M

S I M O N S

In our new series, SAFI THIND show us the hedge fund hall of fame. This issue, it’s Jim Simons – the smartest billionaire on the block JIM SIMONS PUTS much faith in brains. Unlike many US hedge fund managers, he doesn’t have a background on Wall Street, nor is this particularly sought after at Renaissance Technologies, the firm he founded in 1982, where more than a third of employees hold PhDs. What he does have is a genius of a mathematical brain. Simons set up Renaissance after a brilliant career in mathematical research. His PhD thesis at Berkeley, written when he was 23, delivered a new geometry proof to the world. Three years later, in 1964, he was hired by the Institute for Defense Analyses, a contractor for the National Security Agency (NSA), to break codes at the most secret US spy institutions. He then taught maths at MIT and Harvard, finally joining Stony Brook University in 1968 as chairman of the maths department. Here he built one of the world’s top centres for geometry, and won the prestigious AMS Oswald Veblen Prize in Geometry in 1976. Renaissance came as a second career, allowing Simons to make money from his mathematics power. With programmers, physicists, astrophysicists, cryptographers, computational linguists and mathematicians he built Renaissance to be the world’s largest hedge fund in 2008, with $35.4bn in assets, pushing his own fortune past $10bn.

Being a great hedge fund man involves more than being a great mathematician. Others have tried to raise quant funds, but none had the success of Renaissance 122

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Simons’ genius undoubtedly rests on his uncanny mathematics ability, which he was able to use in the hedge fund sphere. Renaissance invests in multiple assets, across borders, flitting between opportunities, using complex mathematical models to analyse and execute trades, many of them automated, and held for a few seconds. The models are based on rigorous data analysis, searching for non-random movements to make predictions. But this general definition could apply to many quant funds. The specifics of his strategy are still unknown. Testifying in front of a Senate subcommittee last year, Peter Brown, co-chief executive of Renaissance, said the company used huge leverage, borrowing $17 for every dollar invested. It also makes a lot of trades, very fast. In one year Rentech executed between 29 million and 39 million trades, holding each position for less than six seconds. But being a great hedge fund man involves more than being a great mathematician. Many others have tried to raise quant funds, but none have had the consistent and significant success of Renaissance. It also involves building a team of supreme intellects and harnessing these to carry out the strategy. Simons is said to have kept “bullshit” to a minimum at Renaissance, allowing creativity to flourish. Renaissance’s flagship fund Medallion delivered 38.5% return between 1989 and 2006. However the fund stopped taking new investments from outsiders in 1993 and removed most non-employee investors in 2005, so access is limited. Since retiring in 2010, Simons has shifted to philanthropy. Noteworthy achievements include setting up a maths foundation, funding research into autism as well as donating millions to Stony Brook. H

THE NUMBERS GAME ■

76th: Position in the 2015 Forbes list of the wealthiest people in the world.

23: Age Simons was when he wrote his PhD thesis giving conceptual proof that is a fundamental cornerstone of modern geometry, and developed the Chern-Simons theory for which he was later awarded the AMS Oswald Veblen Prize, Geometry’s top award.

£35.4bn: AUM at Renaissance in 2008, making it the world’s largest hedge fund at the time.

34%: The annual alpha of Renaissance’s flagship Medallion Fund from 1993-2005.

222ft: The length of Simons’ super yacht Archimedes – built at the Dutch yacht builder Royal Van Lent. It’s the 165th largest in the world.


SALES LETTINGS PROPERTY MANAGEMENT CONSULTANCY INVESTMENT ARCHITECTURE COMMERCIAL PROJECT MANAGEMENT

www.pastor-realestate.com

PASTOR REAL ESTATE 48 CURZON STREET, LONDON, W1J 7UL • T +44 (0)20 3195 9595 F +44 (0)20 3195 9596


Hedge 34 - The Treasure Assets Issue  

Hedge Magazine - Issue 34 - The Treasure Assets Issue

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