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N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N

N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H

A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R

N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A

U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N

N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H

A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R

N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A

U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N

N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T

L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A

U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N

N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H

A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R

N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A

U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N

N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H

A C R AY O N . N E V E R I N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R

N V E S T I N A N Y I D E A Y O U C A N ’ T I L L U S T R AT E W I T H A C R AY O N . N E V E R I N V E S T I N A N Y I D E A


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








Laura Chubb, Vicky Smith ASSOCIATE EDITORS

Michael Gibson, Hannah Summers STAFF WRITER

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Contributors Simon Barr, Chris Dennistoun, Jessica Furseth, Jessica James, Matt Jones, Nic Liberman, Siobhan McFadyen, Melissa Scallan, Hannah Summers, Robin Swithinbank, Jeremy Taylor, Safi Thind


Michael Berrett, Alex Watson SENIOR ACCOUNT MANAGERS

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Printing Blackmore



n a year that has hit many hedge funds hard, the guys at the top seem to have shrugged it off with characteristic aplomb. In fact, the wealth of Britain’s top 25 hedge fund managers, according to the Sunday Times Rich List at least, rose by £1.8bn – to more than £14.8bn – over the past year alone. One man who consistently finds himself at the upper end of the list is David Harding of Winton Capital Management, who joined the billionaire’s club for the first time this year. When it comes to commodity trading, Harding has been there, done that and doesn’t just have the t-shirt, he invented a new one that’s bolder, smarter and more efficient than any other, er, t-shirt. So what’s his secret? Well, it all comes down to trusting in the science. Using what Harding calls an “emotionless systematic approach” – one that takes and holds positions individuals would simply be too scared to – he achieves often unparalleled results: enough to have grown Winton to the 14th largest fund worldwide. The Wizard of Winton may seem to outsiders to have an almost psychic insight into market movements. But in person, he’s far more practical about it: “The fact is, the more questions you ask, the more questions there are. You never get fewer questions.” He is, at his core, a scientist. He just happens to be a very good one, who makes a hell lot of money while he’s at it. Enjoy our exclusive interview with him on p50.

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Krista Faist, Emily Buck

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MATT JONES Matt Jones is digital features editor for GQ and also contributes to the Times, the Observer, Top Gear and Car. He enjoys fixing his 1970 MercedesBenz 280SE 3.5 until it’s broken. This issue he writes about making money from old cars in a new way. [p70]

JESSICA JAMES Jessica James is head of the FX Quantitative Solutions team at Commerzbank in London. She is a managing editor for the Journal of Quantitative Finance and is a professor at Cass Business School. She writes on history and the markets. [p29]

JEREMY TAYLOR Jeremy Taylor is a features writer for the FT, Sunday Times and Telegraph, specialising in motoring and celebrity interviews. This issue, he becomes the first UK journalist to get behind the wheel of a Formula E car ahead of the season’s finale. [p74]



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Steve Cole CEO


Tom Kelly OBE

△ Cover image by David Harrison

© 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.

Laura Millar‘s career as a journalist has seen her wrangle with D-listers, track down impossible causes and talk people into appearing naked in magazines. She can now add travelling to Bali, and almost crying when she had to leave, to the list. [p102]



Breguet, the innovator.

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S H O RT S 020 022 025 026 029 033 035

Open Position My Mayfair Form Chaser Heart Heartland Columns On The Market Picture This

F E AT U R E S 042 The Next Generation The founders of HedgePo explain their industry-changing web portal 046 Gone Fischin’ Kurt Fisch on what links sibling rivalry, convivial colleagues and fish soup recipes 050 Meet the Man of Science David Harding – aka the wizard of Winton – on how to become a billionaire 056 The Leading Lights The world’s greatest artists and designers all under one Chelsea roof

M OTO R S 066 070 074 078

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R EWA R D S 089 099 101 102 108 112 115 117

Watches Music Yachts Travel Country Pursuits Food & Drink Design Property



42 66


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Mark Driver was cofounder of Horseman Capital Management; now he’s the owner of Rathfinny Estate… ON CONCHORD AT RATHFINNY

As fine music and fine wine go so well together, we decided to launch Conchord at Rathfinny – a sumptuous weekend festival blending chamber music and wine at our Sussex vineyard. The London Conchord Ensemble is made up of some of the best musicians in the world, right at the top of their game. As an example, Emily Pailthorpe – on oboe – has played at the White House and has music written for her. And Daniel Rowland is a professor of the violin at the Royal College of Music and gives master classes all over the world. We are honoured that the London Conchord has chosen to make their home at Rathfinny.

I miss certain things about my Horseman Capital Management days. I miss the

Conchord at Rathfinny takes place from 12-14 June. Tickets are available from


We started planting vines at Rathfinny in 2012 and we had our first small crop last year. We are just about to bottle our first sparkling wine which will be released in late 2017 or early 2018. This year, we hope to have a much larger crop and these wines will be available in 2018/19. So far, we’ve planted out 72 hectares (180 acres) of vines and we expect to expand our vineyards to 140 hectares (350 acres) eventually yielding more than 1,200 tonnes of grapes – and one million bottles – of Sussex sparkling wine.



PHOTOGRAPH (Mark Driver) by Vivienne Blakey; (Mustang) by Corey Silvia/RM Sothebys


camaraderie and the discussions we had. I also loved looking at companies and picking stocks. However, I don’t miss the stress or the long hours. We ran a fairly long-term strategy there, holding positions both long and short for up to five years. You need a long-term vision in wine, too. Being able to stick through the highs and lows of agriculture requires the same kind of resilience and fortitude; it takes seven years between planting and releasing wine. If anything, winemaking is more multifaceted: it’s agriculture – the actual growing of the grapes; it’s chemistry – the making of the wine; and, finally, it’s marketing – the sales and promotion of the product. H

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# 2 8

The vegetable medley features young and impeccably flavoursome braised turnips, sweet, earthy peas and jus 22


both a 2009 and a 2011 Les Tourelles de Longueville – the vineyard’s ‘other’ wine, made with more merlot than the Pichon. It comes with a fitting sermon from Seely on the unique character of the terroir and the difference in taste from its flagship blend. Speaking of which, it’s time to taste the first round of Pichon – a 2011 and a 2009, superbly matched by braised turbot with a truly artful, inventive twist in the form of a roast beef crumb, which Roux describes as “yummy” (a technical term, we’re assured). The third course is a masterclass in simplicity and provenance – roast new season lamb accompanied by ‘flavours of spring’, a vegetable medley featuring young and impeccably flavoursome braised turnips, sweet, earthy peas and jus. We enjoy it with the 2002 and 2009 – Seely describes the latter as “seductive and voluptuous”, orating on the prestige of young bordeaux now compared to previous decades. The roguish, inky 2002 is, in Seely’s own words, his “least appreciated baby” – a wine that “gradually started coming out to play” as it aged – and my favourite of the night. After a ‘dessert’ of new potato and truffled brie – paired with a fantastic 2000 and 1990 that definitely play into those old bordeaux stereotypes – a brisk walk back to Green Park station allows time to ponder: Le Gavroche’s lofty reputation must be a huge weight for Roux to bear, but with a little help from his friends in Bordeaux, he makes it seem like nothing at all. – MG Le Gavroche, 43 Upper Brook Street, W1K 7QR; 020 7408 0881. Check for details of its upcoming wine pairing dinners

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PHOTOGRAPH (Hedge Subscribe) David Harrison

Le Gavroche Sometimes, the weight of expectation is no bad thing. Sure, it’s nice to be surprised by a brilliant meal at an unassuming restaurant, but occasionally, there’s nothing better than going all out; than pointing to one of London’s most esteemed, storied restaurants and saying “Let’s go there.” Le Gavroche is definitely a restaurant for those times. It was immediately awarded two Michelin stars when Michel Roux Jr took it off his father’s hands in 1993. And if its inimitable head chef happens to be joined by Christian Seely, managing director of legendary Bordeaux winemaker Château Pichon-Longueville Baron, for a one-off, collaborative pairing dinner – well, that’s no bad thing, either. A glass of Taittinger makes for a suitable tone-setter, before the fun begins: Seely introduces the theme of the evening – a careful balance of pomp and ceremony, accessibility and genuine fun. Given the quality of wine on show, he explains, it would be rude not to compare two vintages for each course of Roux and head chef Rachel Humphrey’s specially-curated menu. The first, an unctuous veal boudin noir with wild rocket coulis, is paired with


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Scrap of the gods We all like to recycle, right? It feels like we’re doing our bit. Even a trip to the tip has a certain kind of weekend joy. But where you see rubbish, Edouard Martinet sees something completely different. The French artist uses scrap metal and parts to create artistic sculptures. When he was ten years old, one of his teachers introduced him to insects and,

as with most ten-year-old boys, he was fascinated. The difference with Martinet is that he never grew out of that fascination. Forty years on and he’s now the art world’s premier – and only? – virtuoso insectophile. He transforms bits and pieces of cast-off junk culled from flea markets and car boot sales into exquisitely executed creations. If six-legged creatures aren’t your bag, Martinet has expanded his portfolio to

include everything from freshwater fish to life-sized ostriches. Whether it’s a matter of weeks – or in the case of one project, 17 years – each piece shows his ever-creative eye and impeccable attention to detail. Prices start around the £10k mark – not too shabby for a load of old tat. H To see more of Martinet’s work go to Sladmore Contemporary, 32 Bruton Place, W1J 6NW; 020 7499 0365;






Acceptable in the ’80s They’re making a new Star Wars film don’t you know? Oh, you do? That’s probably because the entire world and its dog are talking about it. As such, now is a better time than most to highlight artist Paul Oz’s contribution to that particular cinematic universe not so far far away. The little green man you see here is so iconic that it’s almost needless for us to



mention his name, and this is something that Oz recognises. Which is exactly why his first solo collection – 80s Kid – focuses on a motley crew from the 1980s, including Indiana Jones, Freddy Krueger and Margaret Thatcher (not pictured above). Utilising a unique technique whereby he uses a pallet knife to carve layers of oil paint on a board, Oz creates fantastic 3D renderings of famous faces from the decade

of neon, leather and, er, space opera sequels. His unique method of working crafts tangible art that is abstract when viewed up close, but disconcertingly lifelike when viewed from afar. Stick one in the living room and think of it as a perfect burglar deterrent. We’ve heard our man above is pretty handy with a lightsaber.H 80s Kid by Paul Oz runs from 4-21 June 2015 at Imitate Modern;




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Look Back for the Future

The markets are obsessed with predicting what lies ahead. But, JESSICA JAMES argues, the answers are often in the past. Time to tune into a quick history lesson

Are these methods of forecasting future market rates good? The answer is no. Forecasting, on average, achieves 50% correct, which is perfectly useless

Also, consider that markets can and do change. The GBPUSD FX rate was a completely different animal in the years before and after the ERM crisis. This means historical analysis must indeed be tempered with a sound knowledge of the prevailing market conditions, which is a difficult combination to achieve. Finally, it’s not easy. Statistics is a subtle science and it’s possible to misuse it. Ben Goldacre, in his book Bad Science, gives an excellent list of the ways that drug companies misuse statistics to misrepresent trial data; the same is just as true in the markets. The omission of a critical part of the data set (for example, the first few years of a backtest which performed poorly) can completely change the results, and such ‘tampering’ is almost impossible to detect. But just because it is difficult does not mean it should not be attempted. To use historical analysis as a foundation for an investment or hedging strategy is to build one’s house on stone. And in these uncertain markets, it just might prove itself to be the best way forward. H


“HISTORY WILL TEACH us nothing,” sings Sting, in his 1987 song of the same name. And it seems the markets have taken his lyrics to heart. Consider the enormous effort expended each day by research teams in financial institutions to forecast the market moves over the next few days, weeks or months. Which of them use historical data and statistics? And which of them use current indicators such as the political situation, the economics of the moment, the market sentiment of the day? I would say that historical analysis gets only a small part of the hours spent. One type of current information that always gathers a good share of attention is the implied forecasts of market data. By this I mean the future paths of different financial rates, which are implied by the models used to value products. Examples of this type of data are legion – the forward interest rate curve, the path of FX rates in the future, forward volatilities, implied correlations… I could go on. These data were never intended by the mathematicians and scientists who designed the models to be used as true forecasts. But they were inescapable parts of the modelling process. But are these methods of forecasting future market rates good? Or reliable? The answer is no. Study after study finds that forecasting, on average, achieves something close to 50% correct (so it’s perfectly useless; even a number less than 50% could

be used in a contrarian way), and studies on implied quantities (including recent work by myself and colleagues) shows they similarly have no forecasting power at all. People often prefer to argue about the future without using the past to understand it. A great example is the timing of rate rises in the UK. A journalist friend of mine was famous for correctly predicting every time the BoE raised rates, over a number of years. It was eerily accurate. Finally, over a few beers, I asked her how she did it. “Easy,” she said. “They just do what the US did the time before.” Digging into the data, I found she was right. A simple historical fact was more use than all the agonising over the economy, the political situation, and the individual leanings of the members of the committee. So, why do the markets persist in using methods that are provably useless to estimate the future – and why do they largely downplay historical analysis, which has been seen to offer a better success rate? There are a few reasons. The first is slightly circular; folk don’t care much about historical data, so it is not in general well kept or easily available. I teach some research students and the first stage of any project – the data acquisition and cleaning – is always absolutely painful. It should be trivial; a clean and high-quality database ought to be the foundation of any financial research department, just as an excellent experimental method (to generate data) is the foundation of any scientific research. And yet this seems to be forgotten. Next, no historical analysis can deliver a perfect forecast. Any year can deviate from overall statistics in a sometimes violent manner. It often only takes one painful event to discourage investors.

Jessica James is co-author (along with Jonathan Fullwood and Peter Billington) of ‘FX Option Performance: An Analysis of the Value Delivered by FX Options Since the Start of the Market’ (£60; Wiley). The views expressed in this article are those of the authors and not necessarily the view of Commerzbank – note this communication has been prepared separately of Commerzbank.






Buffet’s Restraining Order

NIC LIBERMAN explains why Warren Buffett’s peculiar brand of frugality flies in the face of the idea that you’ve ‘got to spend money to make money’



are the sort of people who, when working in his businesses, would avoid unnecessary expenditure of money, thereby helping him achieve his ultimate goal of accumulating as much capital as possible. In the end, the kind of so-called frugality that we are looking at in Buffett is not particularly about self denial, but rather a dedication to not spending money unnecessarily, so that it can instead be accumulated. Frugality for Buffett seems an overinvested, deeply reassuring symbolic act. It seems to make him feel good to know that people are not over-indulging. But more than this, Buffett’s aim to accumulate as much money as he can makes him a collector, like any other. Stamp collectors and coin collectors accumulate their loved objects for the simple joy of knowing that they own them, not because they want to use the stamps to send letters or the coins to buy the objects of their desire. Their enjoyment comes from cherishing the possession of the object. If the valued object is money, which also happens to be the means of trade in the everyday, then a deeply frugal attitude towards spending it is the same as that of the collector who wants to treasure and not consume. It’s interesting that the restraint that is involved in frugality is available to Buffett on many levels. The quality of restraint itself facilitates a mature, measured attitude toward investing that has been extremely helpful in making him so successful. The thrill, excitement and love of life that’s obvious in the collector’s energetic pursuit of the objects of his desire reveal the way in which much more powerful energies have been sublimated into the collecting impulse. Freud suggests, with the term sublimation, that primitive, deeply felt impulses are transformed into higher forms of wishes and desires, such as artistic creations or intellectual pursuits. It may be that Buffett’s singular focus on accumulating money contains, in a sublimated form, a connection to such powerful parts of his emotional life that being frugal in order to accumulate money is gratifying some personally significant and deeply felt needs. H ‘Being Warren Buffett: Life Lessons from a Cheerful Billionaire’ by Nic Liberman is out now (Hardie Grant ebook/hardback, £12.99)


DOES ONE HAVE to be frugal to become extremely wealthy? And is it really so that counting one’s pennies enables the pounds to look after themselves? One thing is for sure, as penny-pinchers go, Warren Buffett is up there with the best of them. Being frugal is the opposite extreme of indulging one’s impulses, and is different from temperance, which requires finding a balance between meeting our needs and denying them. Frugality is an extreme position that says no to impulses and the desire for satisfaction. It is not about restraining impulses, but rather denying them. Here restraint gets a life of its own, and not necessarily a better life. James Griffin suggests that frugality is not an ultimate good or virtue in itself, but it may be instrumental in bringing one closer to the things that are virtuous or of intrinsic value. Depending on how it’s used, it can be in the service of good or misery. It may be that frugality is generally seen as particularly virtuous because the restraint involved is so much more reassuring and appealing than the picture of out-of-control indulgence. But if one is to look at self denial as a virtue in itself, rather than something that can bring one closer to what is really important in life, it is hard to imagine how, say, having sex, a piece of cake or a holiday once every 16 years is going to bring about a better life. Denial itself is not an ultimate virtue; it’s an essential component of a mature life, and is best used temperately.

However, frugality is complex in its dimensions. For instance, does frugality necessarily imply denial? Is one frugal only because one chooses not to enjoy the resources to which one has access? Can one be self-indulgent by being frugal? In the Berkshire Hathaway Chairman’s Letter back in 2006, Buffett explains of his first meeting with businessman Jack Ringwalt: “When we were due to close the purchase [of National Fire & Marine], Jack was late. Finally arriving, he explained that he had been driving around looking for a parking meter with some unexpired time. That was a magic moment for me. I knew then that Jack was going to be my kind of manager.” Here, he is not excited about meeting a man who is denying himself, but rather completely indulging in what matters to him – saving money. Ringwalt’s apparent frugality is seen as a virtue by Buffett in symbolic form only, because it has nothing to do with actually saving money. A businessman of that stature can make much more money with 15 minutes of his time than he can by saving a dime on a parking meter. This is about a way of being. It is about the value of money being woven into his personality. Buffett and many other people idealise not spending money, almost for its own sake. But perhaps it is for the sake of, or it feels like it’s for the sake of, leaving more money to accumulate. Of course, in this case the idealisation of not spending a dime may, in real financial terms, cost more than the saving. Ultimately, however, Buffett’s attraction to these people who are frugal, specifically in terms of not wanting to spend money, is a winner for him. They


REBUILDING NEPAL THE RECENT EARTHQUAKES in Nepal have taken the lives of over 8,000 people, left thousands more injured with people’s livelihoods and much of the country in ruins. Help us to rebuild the country. Following the avalanches in the region last year, leading UK trekking and mountaineering company 360 Expeditions set up a fund called Support4Sherpas after tragically losing members of our Sherpa team. This year we lost 3 more of our Sherpa team while we were preparing for our Everest bid. Support4Sherpas provides critical, immediate relief for families who have lost their family figurehead, and longer term support to pay for the education, training and medical bills of their children, helping them to rebuild their homes, and lives.



In the wake of the earthquakes we have already raised substantial amounts of money – which is growing every day – but we need to raise as much as we can to help these humble and welcoming people who dedicate their lives to helping us discover and climb the Himalayan mountains.You can help by going to our webpage and clicking donate now: Secondly, you can help Nepal on an even more practical level by going out to trek in the Himalayas and spend time in this beautiful, awe-inspiring country. This brings important revenue into the country directly to its people and is actively encouraged and endorsed by the Nepali government. It is vital that tourism thrives in the wake of the disasters and Nepal rises from the ruins.With your help they will succeed.








Blancpain To find both a tourbillon and a carrousel – two ingenious gravity defying mechanisms – together in the same watch is rare indeed, but Blancpain has managed it with its new L-evolution.

Patek Philippe The Calatrava Pilot Travel Time (Ref 5524) is a beautiful, masculine thing – with a white-gold case, matte blue dial, and a dual-timezone mechanism. Who knew Patek could pull off a pilot’s watch?



Breguet It takes confidence – and not a little watchmaking skill – to create a timepiece like Breguet’s 7097 – with so many visual quirks in a body so elegant it should really be given a modelling contract.


Let’s get the obvious bit out of the way first – yes, this is a Fabergé; no it isn’t an imperial egg. And yes, we’d really quite like to have one on our (not very imperial) wrist. The Visionnaire I marks a bold move into high-end men’s watches for the brand, and they’ve clearly taken the job seriously, drafting in Giulio Papi from prodigious horological innovators APRP to add some serious technological weight to the package. In a nod to those celebrated ovoid jewels, the seven dial segments – one of which, at 9 o’clock, houses a flying tourbillon – appear

to hover over the movement, offering slivers of insight into what lies inside. The retrofuturistic case features brushed platinum and titanium with a blue finish, and there’s an alternative version in rose gold and black-treated titanium if blue isn’t really your colour. Only 15 pieces of each version will be made, which makes them considerably less rare than an imperial egg but still reassuringly exclusive. And besides, we’re so over ova – frankly, un oeuf is un oeuf. H Prices from approx £170,400;

Graff While the Mastergraff Structural Tourbillon Skeleton isn’t exactly simple in name or engineering, its striking cutaway design – they call it ‘excavated facets’ – is as much about what isn’t there as what is.



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PHOTOGRAPH by Vincent Peters (courtesy of Opera Gallery)


Body politic The female form is a powerful thing, and its sensuality has not gone unnoticed by those keen for you to spend your hardearned cash. New retrospective Raw Footage explores the meeting point between fashion photography and high art, drawing attention to how the beauty of the body has been moulded as a tool for consumerism. The exhibition looks at the aftermath

of World War II when, after a period of trauma and austerity, the public was keen for escapism. Fashion photography held the key: its glamour was something to strive towards, and the clothes it depicted were items to attain. All very Mad Men. Featuring striking works from worldrenowned fashion photographers, including Vincent Peters [pictured], Mario Testino, David Lachapelle, Paul Solomons and

Gerard Rancinan, Raw Footage demonstrates how the beautiful, stylised images from fashion photography encourage us to pander after an unattainable type of beauty. We’re on to those clever photographers. Their tactics won’t work on us. Although we do wonder where that model got her hair done… and that chair is lovely. H Raw Footage takes place from 1-18 July at Opera Gallery. For more information, see



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Most people’s enemy is patience rather than a lack of resources. It’s never been easy making money in my experience. MEET THE MAN OF SCIENCE . 050 DAVID TAWIL & RYAN KALISH . 042 | KURT FISCH . 046 | DAVID HARDING . 050 | MASTERPIECE FAIR . 056


â–² PANEL SHOW: David Tawil and Ryan Kalish were photographed in the Holford & Orchid conference suite in the Dorchester Hotel. For more info, see




The Next Generation HedgePo is a potentially industry-changing web portal that connects investors and funds online like never before. Founders David Tawil and Ryan Kalish tell JESSICA FURSETH why they’re the future

DAVID TAWIL AND Ryan Kalish are a tag team. “We’re old friends. We went to school with each other and travelled the world together,” says Kalish. The HedgePo founders keep finishing each other’s stories: “I moved here from South Africa when I was 16, so David and I arrived at school on the same day, all those years ago,” says Kalish. Tawil continues: “I wanted to make myself some friends, so I had a look around, thinking: ‘Who’s the tallest guy in the room? That’s a good guy to make friends with!’ And it turned out that was Ryan.” HedgePo is a story of the power of networking, and it all started that day in a sixth form classroom in north London. A lot has happened since then, though: HedgePo launched in April 2013, and today the portal counts more than 700 institutional investors and family offices as members, accessing data from 1,500 funds. The big idea is to use the power of networks and data to empower investors to make better decisions. We’re meeting in opulent surroundings at the Dorchester Hotel, where tonight’s Investors Choice Awards are being hosted by HedgePo in partnership with CNBC. Our suite looks like old money: gold chandeliers, mirror-covered bar, pungent flowers. The co-founders look more modern: both in dark, slim suits over white shirts with open collars. One is markedly tall; both are soft-spoken but excited about their growing company.

PHOTOGRAPHS by David Harrison

HedgePo is a bit like a private members club; we only grant access to companies that meet our requirements. It’s a safe space to share information

“We’ve always been quite good at bouncing ideas off each other,” says Tawil. “I think this collaborative approach is a really powerful thing, and for us it’s been the energy behind the business.” Their office isn’t far away, just off Regent Street, where the team of 12 is growing rapidly as HedgePo focuses on developing the technology platform. “We see ourselves as a financial technology company,” says Kalish. “I used to work for a fund of hedge funds, where I’d speak to managers, recommend investments, and then manage those investments. Part of what we’ve tried to build is a tool that’s useful to somebody who is sitting in my old seat.”

A private community So, a network where fund managers and investors interact digitally – that’s a bit like a LinkedIn for hedge funds, right? That’s what CNBC called the company. “Well, I think we’ve moved on from simply being like LinkedIn,” says Kalish, laughing. HedgePo wants to be a far more vital component to its world than that. “There’s definitely a network element, though, which is fantastic,” he goes on. “But I think the reason why it’s so active is because it’s useful.” That’s owing to the investor-centric nature of the platform: “Everything that we do is about building useful tools for investors to discover interesting investment opportunities, but also to understand their current investments. The technology is there to help them do that.” I’m taking the co-founders at their word on what the portal looks like, as I’m not allowed to see it: “Well, the data is confidential!” But apparently, funds can see things such as information about investors, their preferences, and what strategies they’re interested in. Investors can read up on the funds, including performance, weekly estimates, and the team. There’s also a newswire where funds are pushing

commentary, newsletters, video and timesensitive information, and everything can be filtered according to interests. In a sense, HedgePo is one of those ideas which seems so obvious it makes you wonder why it hasn’t already been done. But technology and the financial industry have historically been a reluctant pairing, and the advantages have only recently started to prove themselves. “In light of recent regulation and compliance issues, fund managers are realising technology can actually empower them to manage their privacy,” says Kalish. With HedgePo, managers can select which investors on the platform have access to their information, which results in better control over who sees it than sending out documents via email. This should appeal to the nature of the hedge fund industry, says Tawil – though he’s careful to call the industry “selective”, not secretive. But, adds Kalish: “There’s also an element of HedgePo being a bit like a private members’ club where, on the surface, people in the industry can request access, but we only grant access to individuals and companies that meet our requirements. This private community is what gives fund managers a safe space to share information.” The co-founders see HedgePo as something they want to focus on for the next 20 years at least: “We want to be a big part of what the industry looks like in the future,” says Kalish. Maybe joining the industry in 2008 has something to do with that: “We got involved when everything was gloomy [and] didn’t participate in the bull run of the early 2000s. We have a hunger to leave our mark.” In that sense, joining the industry in a time of crisis may even have freed up Tawil and Kalish to embrace a different approach: “We feel excited about technology and innovation. We’re passionate about bringing this to an industry that is very much older and established. Now, new managers who’re more open ▶




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and a bit more transparent are coming onto the scene – we’re a part of that wave.” But as much as HedgePo is about embracing new tools, make no mistake: “This is still very much a relationshipdriven industry,” says Kalish. “When we speak to family offices and institutional investors, it’s still those relationships the business depends on.” The co-founders are grateful for the support they’ve received from investors, the financial technology industry, bigger businesses who want to work with them, and UK Trade & Investment, which invited HedgePo to represent the London fintech scene on a recent trade mission to New York. Not to mention the support from Kalish’s old employer Stenham Asset Management, which allowed the pair to work out of their offices while they were setting up. ▶

Early dedication Back before any of this happened, Tawil and Kalish travelled together during their gap year. I try my best, but I can’t get the two to admit to anything other than having been terribly nice boys: “Ryan used to DJ our parties at school,” says Tawil. “I was the DJ,” Kalish nods. “I was really into music.” Back then, they had no idea they’d be going into this line of business together. “No, not at all,” says Kalish, shaking his head. “Although maybe there was an indication, in the sense that a lot of what we do is based on data and quantitative metrics. David and I used to cram for exams together, sitting at David’s dining room table; his mother would bring us water.” In fact, Kalish figures, this interest may well have been the reason why he was able to carve out a place for himself at Stenham, having graduated from the London School of Economics in the depths of the financial

We always see ourselves as impartial. We want to become the Bloomberg of this industry. We want to be the platform that everybody needs to be plugged into

crisis. Tawil took a similar route to Credit Suisse via Bristol University. And anyone with half-decent maths skills will have worked out this pair’s age bracket by now: “We’re 28,” they confirm. Is that something they tell people? “We don’t advertise it.” We all nod quietly, and move swiftly on. The idea for HedgePo was cemented during a long flight, says Tawil, although, Kalish adds, the desire to run a business stretches further back: “I always wanted to start a business and to do something entrepreneurial. We both wanted to create something of our own and be able to run with a vision of our own.” The co-founders both live centrally in London. “I play tennis, ski, travel. I like to hang out with friends and go for a drink. Very simple pleasures,” says Tawil. Kalish’s family is spread all over the world, and he spends a lot of time in Zurich, where his fiancée is from. “But I love London,” he says. “I think it’s the best city in the world. I’ll often walk around London for hours, just

looking at the street scene. That’s where I think our best ideas have probably come from: walking around Hyde Park.” Tawil adds: “They are our walking meetings.” HedgePo has already started expanding beyond the world of hedge funds to also include venture capital and other real assets. For the first time since the launch, the company is looking to raise money, and a second office will open soon in New York. Things are happening quickly, but what’s the ultimate goal? “We want to become – and we feel like we are becoming – the network that connects investors with the fund managers that they care about,” says Kalish. “We always see ourselves as being independent and impartial: not too closely aligned with either the investor or the manager, but if anything, leaning towards being aligned with the investor.” So forget about being the LinkedIn of the investment industry: “We want to be the Bloomberg of this industry. We want to be the platform that everybody needs to be plugged into.” H




Gone Fischin’ The brothers behind Fisch Asset Management are exploring new markets. CATHY ADAMS learns why some healthy sibling rivalry, fish soup recipes and convivial colleagues have investors hooked TRADITIONALLY, TWO BROTHERS going into business together hasn’t worked out that well. There’s biblical brothers Cain and Abel, who basically coined the term ‘brotherly ire’. Oasis’s Liam and Noel Gallagher are better known for their longstanding feud than for their lyrics, and let’s not even get started on the Kray twins. But Kurt Fisch and his brother, Dr Pius Fisch, are firmly in the ‘brothers who work better together’ camp, since setting up Fisch Asset Management – a boutique firm focusing on convertible bonds and creditbased bond strategies – together in Zurich in 1994. And more than two decades later, their relationship is still going strong. The Swiss brothers, who founded Fisch simply because they always wanted to run their own company, make a good team – mainly by concentrating on separate halves of the business. Kurt runs the asset management side of the company, while Dr Pius, a lawyer, oversees the “business” end of things. It’s a partnership that works effectively, according to Kurt. What’s their secret? Er, arguments. And plenty of them. “We have a lot of arguments,” he tells me when we chat over the phone. “But we enjoy arguments. Everyone has to be critical, otherwise we couldn’t continue.” The pair are quite competitive, Kurt adds, but also very close: it’s clear they get on well, and have done since they were very


PHOTOGRAPHS by Jean-Luc Grossmann


Preaching to the converted Fisch Asset Management specialises in two sectors in particular – hedge funds and convertible bonds, and it’s the latter that the eponymous asset manager is most well known for. It’s at the core of what it does. Across the strategies Fisch offers – including corporate bonds and multi-asset – there are about 30 different portfolios. Kurt, a former financial journalist with a stint as a correspondent in New York under his belt, admits that while convertible bonds are a “niche asset class”, they have been expanding in popularity over the past few years, as they offer protection in weak markets. The bonds, which make up around two-thirds of Fisch’s managed fund universe, offer the security of a fixed income instrument, but also allow investors exposure to share price gains. Convertible bond strategies were on the menu as soon as Fisch opened its doors in 1994. “Starting with convertible bonds was the logical choice, as I had been specialising in them during my time at Credit Suisse in the 1980s,” Kurt says. “At the time, they weren’t very well known, but it was an area I had a lot of experience in, and I thought it would be an interesting niche to explore for institutional and private clients. “Convertible bonds are particularly attractive because when share prices rise, the equity exposure of the convertible bond increases automatically, and it falls when share prices fall, which adds a positive curve to the portfolio,” he adds. ▶

PHOTOGRAPHS by Jeann-Luc Grossmann

We do have a lot of arguments, but we enjoy them. Everyone has to be critical, otherwise we couldn’t continue. You must enjoy competition

young (Kurt is five years older than Dr Pius). “In asset management, you have to enjoy competition,” Kurt adds. “It’s very important in the boardroom. “Our goal was to form a company that focuses on doing responsible business – everyone has to be motivated in that approach and in it together.”






Currently we are more focused on expanding our geographical reach than adding new asset classes. The Nordics and the UK are interesting markets targeting German-speaking regions – although he admits, for a small company such as Fisch, it’s a “demanding move”. “Currently we are more focused on expanding our geographical reach than adding new asset classes,” he says. “The Nordics and the UK in particular are very interesting markets to us. Besides that, we are screening Europe opportunistically. “Convertible bonds will still be one of the key priorities for Fisch Asset Management,” Kurt is quick to emphasise. “Our core offering will continue to be a mix of different credit products as convertibles and corporate bonds,” he adds.

The future is diverse Non-traditional investments, namely hedge fund strategies, also play a key role in the Fisch Asset Management offering, and it’s an area of expertise for Kurt that dates back to 1988, when he joined private Swiss bank Bank Lips (now Privatbank Bellerive). “I was asked where I can make money in difficult times,” Kurt says. “Hedge fund strategies can make money when the stock market is tough. At the beginning, clients were anxious that it was a dangerous area to invest in, but I convinced them that it was a great sector to have exposure to.” It was a fund of hedge funds, and focused on mainly managed futures. Years later at Fisch, Kurt introduced a managed futures hedge fund in order to diversify the offering and attract new types of investors. “Our approach to investing and giving advice to clients always emphasises the need to diversify, and we saw considerable interest from investors in this area,” he explains. “Owing to our momentum-based investment approach in convertible bonds, we also had an obvious affinity with managed futures.” The flagship hedge fund strategy invests across the board – currencies, interest rates, ▶



commodities, global equities – within the managed futures space, and has enjoyed notable success. Last year, it returned 16% to investors, while in the year to endMarch, investors were 5.2% better off.

Plans for expansion With assets under management tipping the scale at 8.5bn CHF (£6.1bn), Fisch is currently in a period of expansion. Not only has he hired an expert in quantitative analysis, hoping to drive that side of the business, but Kurt is eyeing further growth into wider Europe – the firm is currently

CURRICULUM VITAE 1977–1982: Editor at finance journal Finanz und Wirtschaft 1984–1988: Relationship manager (equities and convertible bonds), Credit Suisse 1988–1994: Head of asset management, Bank Lips 1994-present: Co-founder, Fisch Asset Management

Fisch to fish Day-to-day life at Fisch Asset Management sounds – maybe uncharacteristically – easygoing, and rather unlike pretty much every other investment management company I’ve come across. Kurt frequently references how “happy” he wants employees and clients to feel, and every employee profile on the Fisch website details, rather endearingly, the significance of the word ‘fish’ in their life. Under Kurt’s profile is his love of fishing, as well as detailing his mother’s recipe for the Russian fish soup that he used to eat as a child. Is it worth me trying to make it, I ask? The ingredients list looks daunting enough, demanding fish that “you have caught and cleaned yourself”. Kurt’s response is that the soup is so strongly flavoured that it makes the whole house smell “extreme”. “You wouldn’t want to eat a lot of it,” he laughs. Maybe not then. A happy working environment, recipes for soup passed between colleagues and clients – the Fisch brothers may claim to thrive on arguments, but it doesn’t look as though any Gallagher-esque feuds will threaten the equilibrium any time soon. H


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Meet the Man of Science As Winton Capital reaches new heights, CHRIS DENNISTOUN asks its legendary founder David Harding – Cambridge-educated physicist, science-supporting philanthropist – to reveal his winning formula

DAVID HARDING HAS an easy charm that transcends boundaries, plentiful natural enthusiasm, and ability second to none. Few alternative asset managers have done so well for their clients over the last 30 years, and there are few who, like Harding, disclaim their own success as though it was not quite an accident but a factor of synchronicity, or more likely a personal secret that not even he has yet fathomed. I met him at his brand new offices in Hammersmith; the exterior a dreary postwar block that wouldn’t be out of place in East Berlin before the Wall fell. But inside we might have been in Silicon Valley. He showed me the transformation that was taking place: Winton’s punchy white logo on a bright red background displayed across the entrance hall – a new auditorium where the walls can be backlit in different colours. If the barista at the new onsite café had written ‘Winton’ in the froth, I wouldn’t have been surprised. Harding attends to all the details, including helping to choose interior design; in the front hall a set of large Dufy prints hangs on the walls. He would admit to always having been ambitious, and from the very beginning set out to make a career in the City. It was his entrepreneurial instincts that led to the formation of AHL, with Michael Adam and Martin Lueck, and then – after the bust-up with Man – starting Winton. He couldn’t have envisaged becoming so



But history shows us that people are very much social animals, and if everyone agrees the colour is black, then it is black. Some people – the iconoclasts – will insist the colour is white, and usually they get run over. They get stampeded. They end up a reluctant champion, a reluctant crusader, or, you might say, a reluctant rebel.” One of his primary doubts was the efficient market hypothesis. Today many take it as article of faith. Thirty years ago, the lines weren’t so tightly drawn. “There is a difference between those who come from the securities markets and those who come from the commodities markets,” Harding says. “People who come from a securities background tend to believe in the efficient market theory. Traders in the commodity markets have a more traditional viewpoint. They’re not arbitraging inefficiencies, they’re putting on directional positions to work out which way the market is going and betting on them. We come from that background.” Harding’s methods are systematic and scientific, based on computer analysis to test ideas using charting and technical analysis. “At Sabre Fund Management, we drew hundreds of charts every day,” he tells me. “I had read almost all the books on technical analysis. We had a library of more than 10,000 chart patterns, from which I tried to make inferences about the future.” He expanded his research material by rigorously studying market theory, financial mathematics, option pricing, arbitrage, and the Liffe manual. “Nearly anyone who has studied those things thinks technical analysis is a load of hooey. I didn’t necessarily agree with that; I was very interested to find out if you could test it.” Harding tells me that Michael Adam had been developing systems since 1979 on computers, using a North Star. But what were Harding’s conclusions? “Initially they were compelling. ▶

PHOTOGRAPHS by David Harrison

The conclusions I have come to are at odds with conventional wisdom. The iconoclasts end up reluctant champions or, you might say, reluctant rebels

successful – or so rich – in the process. “I never dreamt of being a billionaire,” he says. “A millionaire, yes.” Although he is quick to point out it wasn’t always easy. His parents were not wealthy; his father a civil servant, his mother a French teacher. “When I grew up everyone assumed the world was becoming more egalitarian in financial terms, which it had been for a long time. In England there was extreme wealth but it was hidden away in the land which belonged to the aristocracy.” Harding describes himself as “very lucky” to have been involved in global money management, particularly in terms of its growth over the past 30 years. “When we started AHL, futures trading was not accepted in this country, and at Man most of our clients were American, with only some in the UK. In the 1980s, you might have heard of the KIO (Kuwait Investment Office). Today, there are 73 sovereign wealth funds and 285 major public pension funds. I deal with a number of those public pension funds and they are huge – as big as sovereign wealth funds – and most people wouldn’t know they existed. What I’m saying is, there’s a lot more money to be managed, so it’s not surprising there are some very successful money managers.” Having achieved first class honours in theoretical physics at Cambridge, Harding then realised he could use his scientific background and interest in statistics to focus on the markets, specifically to examine widely held beliefs that had never been seriously challenged. “The methods I have used for investing in the markets are based on an intellectual and analytical approach to market data, but the conclusions I have come to are at odds with conventional wisdom,” he explains. “The question is, do you believe in the orthodoxy? Most people do. You might think that’s absolutely mad, rather than believe in the evidence of the senses.




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



HARDING ON THE TRICKS OF THE TRADE HIGH FREQUENCY TRADERS “High frequency traders are very skilled at finding a way to produce a shorter exchange. We shouldn’t be derogatory about that. It’s a super skill. But it’s not a skill you or I will necessarily admire. It’s not why we read Market Wizards in the 1980s. We didn’t think, ‘I’d like to be one of them’, because we thought we could get the order in slightly quicker. Rather, we thought in some sense – we fantasised – that there might be a way to crack the code of the market; that there would be a way of discovering the market’s DNA.”

TRADING CONSISTENCY “Between October and the end of January, we didn’t have a losing week. And the trade driving that was the decline in oil. We were short oil, short the Canadian dollar, short the Aussie dollar, short energy stocks, short copper; there were a whole bunch of related moves. What I find interesting is that recently it was the hedgers, the fracking industry in America who helped break the back of the oil price. It’s relatively cheap to drill a well, and once the oil’s flowing, they could sell it all forward. That was real hedging, which is the function of the futures markets – rather than Dutch hedging, when the hedgers are actually speculating.”

▶ Let’s

say they were fairly compelling. But if something has worked for five years, does it mean it will continue for the next 100? There were very big bull and bear markets in commodities in the 1970s and that was the data that was available. It looked as if

Most people’s enemy is patience rather than a lack of resources... It’s never been easy making money in my experience. It always looks easier in hindsight

there were trends in markets, and trend following worked. We had a set of tools, and using computer programmes we could test the results. Once you have a way of asking questions, you carry on. That’s the scientific mentality. The fact is, the more questions you ask, the more questions there are. You never get fewer questions.” Without stating the obvious, Harding does it better. Many trend followers have had to close their funds, including ‘Market Wizard’ Richard Dennis in 1988. “The trading methods they used were relatively straightforward and simple. We do a form of research that few others do. No one in the banking sector does it. It’s essentially mathematical. It involves largescale computing, using sophisticated forms of empirical investigation.”

I asked him, if I gave him a laptop and £100,000, could he make an annual 20%? “Yes, I think so. It would be possible. In general, most people’s enemy is patience rather than a lack of resources. I was very successful at AHL, but it took a number of years to get Winton going. At the beginning I had no substantial resources and the benefit of one researcher.” He started with $1.6m, and in the first month lost 13%. The next year, Winton shot out the lights returning 52.17%. That’s not to say the turnaround was simple. “It’s never been very easy making money in my experience. It’s always looked easier in hindsight. One thing that has changed is the 5% that came in every year. We could deal on margin, and then get 5% interest. The commissions and spreads ▶





▶ have

also steadily declined over the last 30 years. Nowadays, you’ve got to run faster to justify your fees. But I don’t accept that the markets changed in a discontinuous way.” How much of his success is down to ‘eureka’ moments, does he think? “We do leave it completely to the computers,” Harding replies. “The joke I’ve made over the years is occasionally I have an epiphany. Sometimes it becomes quite clear to me what will happen in a particular market. And usually I’m right – for about a day. Then it moves against me. “Perhaps it’s a kind of sensitivity, seeing a fraction ahead how others are thinking. I’ve never made money from that because we don’t do that. We don’t trade like that. We’re very, very constrained about what we can do,” he emphasises. One area where he is considerably less constrained is his charity work, where his interests are as diverse as they are generous. In 2014, his foundation donated £5m to London’s Science Museum for a new mathematics gallery designed by one of Britain’s most prominent architects, the twice Stirling Prize-winning Zaha Hadid. He has donated £20m to investigate the physics of sustainability at Cambridge; set up a professorship there to improve the public’s understanding of risk; gives an annual prize for the most popular science book; and has given £5m to the Francis Crick Institute for cancer research. He’s not interested in owning a vast country estate, a ten-storey, ocean-going yacht, bidding on a brace of Picassos, reclining in a custom-built Ferrari, or disappearing to his own private pampered refuge. It’s not his style. Winton does, however, own a collection of rare books on speculation, which Harding had been instrumental in choosing. He lists his

Occasionally I have an epiphany. Sometimes it becomes quite clear to me what will happen in a particular market. Usually I’m right for about a day 54


favourite pastimes as hiking, skiing and walking – he walks the one-hour commute to the office every morning – and he enjoys playing football with his three older sons. If he did migrate to that well-known desert island, he’d decide to have internet access, and Wikipedia. He admits to a thirst for knowledge, saying that he enjoys “knowing a little about a lot”. He’s undoubtedly one of the good guys. Harding’s charitable ventures share a common aim: employing science for mankind’s benefit, whether it’s harnessing quantum physics to resolve our energy problems, or creating the scientific breakthroughs needed to meet the increasing demands on our natural

resources. In his own words: “At CERN we are investing millions and millions looking at the Higgs Boson. Higgs Boson is not going to solve any of mankind’s problems on earth. If you have been as successful as I have been in making money, and you don’t give some of it away, you’d be pretty mean. You have a responsibility; sooner or later you incur some kind of obligation to do something with your money.” Of course, many hedge fund managers have started foundations, and charities, but few have reflected their personal interests so much in their generosity. And fewer still will have a chance of changing the world we live in so radically for the benefit of our, and future, generations. H















s t h g i L g n i d a e L e Th

s in signer e d d s n ourite men a v s a t f f s a i r sts, c ews h st ar ti DLEY previ e t a e r he g K HE . MAR rates t f b o e l o e r c lsea Fair e Che n rpiece o e t r s e a nd M nnual l together u The a l a orld – the w

PHOTOGRAPHY NIKO LUOMA One look at Niko Luoma’s work, and immediately you’ll think it’s digital – some clever manipulation of binary data to make ultra modern arrangements. You would, though, be mistaken. The Finnish abstract photographer instead works purely in good old-school analogue. His pictures, like ‘One Day in March’ (2007) [pictured] are created through multiple exposures on film. Mathematics, light, geometry – and a fair amount of luck – lead to the final dramatic compositions. For more info, go to






From her smouldering look, Nell Gwyn could certainly turn it on for the canvas – Simon Verelst’s, in this case. She could also turn it on for royalty – a self-proclaimed “Protestant whore”, she was the mistress of King Charles II. For more info:







If you think this globe looks familiar either (a) you’re a Star Wars fan or (b) you’ve seen one of its big brothers outside the United Nations HQ in New York. Indeed, Arnaldo Pomodoro’s work can be seen, fittingly, all across the globe. For more info:



Every year, only a select few car makers are allowed through the Royal Hospital gates. This fair, it’s Maserati. Having celebrated its centenary last year, the Italian brand is firmly established as one of the finest Italian car marques. For more info:



You could never accuse Linley of thinking small. Its latest collection is called ‘Lightscape’: the premise is an exploration of light in the city and how it transforms architecture. What’s amazing is that it’s managed to pull it off. For more info:





Back in the late 17th Century, it was the Brits – not the Swiss – who were renowned as the best clock makers. Thomas Tompion was commissioned to make this Grande Sonnerie table clock by William III as a gift for the Medicis. For more info:








In one decade, Summers produced more than 100 furniture designs, which capture the zeitgeist of the 1930s. This armchair is constructed from a single piece of bent plywood and was also the first chair ever to be formed in a mould. For more info:



Agostino Bonalumi was a creative polymath. From set and costume design, to two-dimensional and three-dimensional abstract art, he was a pivotal figure in postwar Italian art. His large-scale sculptures were his most dramatic. For more info:



If you think Turner was all about stormy waters, then think again. His later works, such as this ethereal piece from his 1836 Alpine tour, show just how bright the artist’s work became. Probably getting soft in his old age. For more info:

PHOTOGRAPHS (Turner) by Todd-White Art Photography; (Tompion) by Andy Green




PAINTING LUCIO FONTANA Earlier this year, Lucio Fontana’s ‘Concetto Spaziale, Attese’ (1965) sold for £8.4m at Sotheby’s. This is the world record for one of the Italian artist’s ‘slash’ paintings – from his Spatial Concept series. What he named “an art for the Space Age”, these works were monochrome creations with holes or slashes on the surface. This example from 1953 will be on display at the show – and if you have to ask, then you definitely can’t afford. For more info:




SCULPTURE BASED UPON ‘Based Upon’ may be a baffling name for a collective of British artists who create such a diverse and original spectrum of work. But we’ll forgive them for the confusion if it results it pieces like this. Entitled ‘If I Had Known Then What I Know Now’ the sculpture has a characteristically enigmatic title. Perhaps a reference to the General Election results? For more info:

ART GALA The Art Gala marks the third in a series of NSPCC fundraisers – each themed around a different genre of art – which have raised £3.7m for chairty to date. Taking place on 30 June at Masterpiece London, tIckets start at £100. For more info:



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40 Y EARS O F E NHANCING A BR ITISH ICO N Overfinch is the world’s leading creator of bespoke Range Rover vehicles. For four decades, Overfinch have been enhancing and redefining the iconic Range Rover, creating the most innovative, beautiful and spectacular vehicles. Overfinch dedicate British craftsmanship to the pursuit of perfection, to meeting the bespoke requirements of a global clientele. The results are a groundbreaking blend of capability, individuality and luxury.

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Master a classic, rally-prepared Porsche 911 on an ice-covered lake in northern Sweden. With meticulously prepared lake circuits, lined by cushioned snow banks and world-class instruction, we deliver the ultimate ice driving experience for all abilities.



The eMachines are powered by glycerine: a sweet, non-toxic compound so pure I even sampled a mouthful POWER SURGE . 074 ROLLS-ROYCE . 066 | CLASSICS . 070 | FORMULA E . 074 | AUTO ART . 078


King of the Road Not all cars prompt curtseys from pedestrians, but a Rolls-Royce isn’t just any car, says MARK HEDLEY. Loyal subjects, please be upstanding for automotive royalty, the new Ghost Series II THE THING ABOUT a Rolls-Royce is that it doesn’t half make you feel special. Sure, some cars may make you feel powerful – a Mercedes S-Class, for example, has a certain autocratic panache. Others can inject you with obscene smugness – a long-wheelbase Range Rover is so large and capable that if people don’t get out of your way, you could just drive over the top of them. But a Rolls-Royce makes you feel genuinely, royally, spectacularly special. And no, not in a remedial way. The first time I drove a Rolls was an eye-opener. It wasn’t (just) the quality of the car that stood out immediately; it was the reaction to it. Within five minutes of sitting behind the wheel, I had pulled up at a zebra crossing; rather than walking across, the female pedestrian waiting curtsied and waved me on. Five minutes later I was waiting at some traffic lights and a tramp gave me a salute – and not even a two-fingered one. This would not have happened if I was driving any other car. A Rolls-Royce has two things in abundance – presence and personality. The new Ghost Series II is no exception. It’s the only car that can make a City skyscraper look a bit, you know, meh. At 17ft 8in long, it’s not much smaller than one, either. With its huge glistening grill, it shouts money louder than any barrow boy on the trading floor – although, no doubt it uses far

With its huge glistening grill, it shouts money louder than any barrow boy on a trading floor – although, no doubt it uses far more gentrified language 66


more gentrified language. The Rolls is more of a family wealth manager than some flashin-the-pan trader. It has heritage in spades and, despite being a thoroughly modern car, upholds many old-school charms. For instance, the gear selector is an elegant stalk off the steering wheel – not some unsightly knob. The cold light of the central display screen can be shielded from view by a wooden panel at the press of a button. The heating sliders say ‘soft’, not ‘low’. It has heating sliders, for God’s sake. And those are just the things you can see. Press a button on the front door sill and an umbrella will fire out. Pull down on the leather ring between the rear seats and you’ll find another treat: a two 35cl-bottle champagne fridge. In the rear armrest there’s a hidden drawer: one press for the ashtray, two presses reveals a secret compartment (OK, maybe not that secret now I’ve told you about it). There’s a lot of theatre about a RollsRoyce. The Spirit of Ecstasy, in its perpetual bow, rises from the bonnet as you unlock the car. The elegant statue is lit up at night by a blue halo of light emitted from around its base. The bonnet of the new Ghost even has two channels sculpted into it – designed to emulate a jet stream in the wake of the Spirit’s outstretched wings. As I say, it’s theatrical stuff. The styling of the Ghost Series II is a little more aggressive than its predecessor. The headlights are new curved LED units with unbroken daytime running lights around the frame. Every panel of the front has been updated – where the Series I looked a little passive, the Series II has intent. And, fortunately, it’s not all show. Under that prolific aluminium bonnet is a twin-turbo, 6.6-litre powerplant that takes the Ghost from 0-62 mph in a whisker less than five seconds. No clunky V8 here, thank you very much. This sizeable V12 is ▶


PHOTOGRAPH by James Lipman






ENGINE: V12 twin-turbo POWER: 563bhp @ 5,250rpm 0-62MPH: 4.9 seconds TOP SPEED: 155mph COST: From £232,000

▲ KINDRED SPIRIT: The Ghost is a hard act to follow, but the more aggressive Series II has surpassed it, effortlessly blending modern tech with old-school charm

▶ more

The drive is smoother than silk that’s been wrapped in cashmere on a bed of velvet. It’s like someone has gone out ahead of you and ironed flat all the roads 68


from the driving experience. It still feels like a precise machine: it darts into corners in a far more eager way than you’d expect for something that weighs the best part of two-and-a-half tonnes. In fact, the Ghost Series II is one of the most driver-focused cars the marque has made. There’s headup display – of course there is – so details including your speed (and the limit), sat-nav instructions, proximity and danger warnings float at the bottom of the windscreen. The ZF eight-speed automatic gearbox is whippet-fast, too – and has the latest satellite technology incorporated. This means the car can anticipate a sharp corner before you even see it. It then changes to the best gear for the job. For example, if you’re coming up to a roundabout, it will change down a gear or two, so you don’t have to trouble yourself to brake too hard. Almost like a trusted advisor: “Don’t you worry about this, sir – I’ve got your back.” You do have to remember to give way, still. Although, in a car like the Ghost, you kind of feel like everyone else should be giving way to you – on principle.

The tech doesn’t end under the bonnet: the car recognises simple voice commands (ensure you adopt the Queen’s English for speech); there’s on-board wifi allowing numerous devices to hook up; and then there’s that sound system. Rather than hiring in an external company to make it, Rolls has done the work in-house. Like a watch manufacturer making all its own parts, Rolls believes in authenticity at every level. Your favourite music sounds better than you’ve ever heard it before. Turn up the volume on the 18-speaker system, and it’s like the O2 arena sound stage has been parcelled up and unleashed in the cabin. (But without the sticky seats and long queues at the bar.) It is, like everything else the car does, genuinely special. It was in no small way thanks to the prolific Ghost Series I that Rolls-Royce’s profits have been as impressive as they have for the past decade. Big things were expected of its successor, and with the Series II, it would seem that the company’s future is in very safe hands. H For more information, see

PHOTOGRAPHS by James Lipman (

of a purrer than a, er, growler. Foot down and you can hear it – just about – rolling its Rs… “R-r-r-r-Rolls-r-r-r-Royce.” The drive is smoother than silk wrapped in cashmere on a bed of velvet. As my father-in-law put it: “It’s like someone has gone out ahead of you and ironed flat all the roads.” You just don’t feel bumps anymore. You’re vaguely aware that they’re out there – in the same way you’re aware of, say, 4G or infrared rays – but you’re so anaesthetised from them that they barely make it into your consciousness. Despite this, you’re not disconnected

1950 Healey Silverstone - sold for £212,750 at Silverstone Classic Show 2014

19501950 Healey Silverstone at Silverstone SilverstoneClassic Classic Show Healey Silverstone- sold - soldfor for£212,750 £212,750 at Show 20142014

1991 Ferrari Testarossa - sold this year 1991 Ferrarirecord Testarossa sold this year for world price- £202,500 for world record price £202,500 1991 Ferrari Testarossa - sold this year for world record price £202,500

2010 Porsche 911 GT2 RS (997)

2010Sold Porsche 911 GT2 RS (997) this year for £236,250 Sold this year for £236,250

2010 Porsche 911 GT2 RS (997) Sold this year for £236,250

The ClassicSale Sale The Silverstone Silverstone Classic The Silverstone Classic Saturday 25th Sunday 26thJuly JulySale 2015 Saturday 25th & & Sunday 26th 2015 The Wing, Silverstone circuit, NN12 8TN

The Wing, Silverstone circuit, NN12 8TN Saturday 25th & Sunday 26th July 2015





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Ahead of the Curve JD Classics is the first company to develop an algorithm methodology to work out which classic car prices are about to boom. GQ’s MATT JONES investigates

PHOTOGRAPHS by Firstname Surname




VISUAL PHEROMONES AND cultural connotations make classic cars one of the world’s most compelling alternative asset classes. More so when you consider that they consistently provide better returns than other traditional asset classes, as well as more unusual investments. According to the Knight Frank Luxury Investment Index, wine, for example, offers investors a 3% return over 12 months. Watches, 4%. Coins, 10%. Classic cars? 25%. Even in the last 12 months the market’s shown growth of 8% – and 469% over a ten-year period. Needless to say, that outperforms the FTSE 100 by a comfortable margin. Which is all very well. You can drop, say, £10m on a late-1950s Ferrari 250 GT short-wheelbase California, relatively safe in the knowledge that you’ll get a decent return – 13 of them appear in the top 100 most expensive cars of all time and only 56 SWBs were built, so demand comfortably outstrips supply. But what the market lacks is even a rudimentary algorithm for speculation so you can turbocharge your investment. Or at least it did. JD Classics, in the words of its founder and 100% shareholder Derek Hood is “primarily a restoration firm.” But it’s also developed classic car value forecasting and a series of rubrics that inform it. Hood says, “Over the years we’ve built up what’s arguably the world’s number one restoration facility. Thirteen years ago, when we commissioned our current workshops, I could see where the market was going. We’ve been growing so quickly, in particular over the past five years, and with sales now in the hundreds of millions, I wanted to set up an infrastructure and governance in line with a FTSE 250 firm. That’s what former investment banker Anthony Wenyon has been brought on board as CEO for, as well as to position the business as a global brand.” Wenyon, whose first role in the City was in equities at UBS, says, “There are many parallels between the financial world and classic cars. They have become an asset class and an established store of wealth. Their prices are now tracked, albeit in a basic form, by indices [examples include the Historic Automobile Group International (HAGI) index, classiccarprice. com and] and financial pricing

models can be applied to them with a market demand and supply framework. There are value-added models and metrics that can be applied to calculate returns.” Applying City logic to the practice of classic car investments – as opposed to examining the profits – isn’t just novel, it’s previously unheard of. This, like other investments of passion (art, jewellery, ceramics and stamps) is an industry that’s relied solely on gut feeling to steer value and price cars. But mapping transactions, identifying trends and reacting to them has proved vastly successful for JD. “Just as a private equity firm tracks returns on funds they invest in developing businesses they own, we track percentage IRRs (Internal Rates of Return) on individual cars,” says Wenyon. “This allows us to judge when and how to prioritise workshop capacity and pinpoint when to release cars into the market. “We use a proprietary valuation model to pick models that are undervalued in the market. It’s a relative valuation in the same way equity analysts compare metrics within a particular sector to spot undervalued stocks, but it works. We’ve taken views on a number of models being mis-priced and we’ve been proven right in all cases. The Ferrari Daytona is one example.” The Daytona has never been a cheap car, but it’s only recently become an expensive one: take, for example, the one that sold at RM Auctions in March this year – for $3.3m. The Daytona moniker was actually made up by journalists – its given name is the rather less evocative 365 GTB/4. 365 for the capacity of each cylinder, B for berlinetta and 4 for the number of camshafts. And while it might look a bit disco, it’s true to the big-money Ferrari idiom – V12 in the front, seats in the ▶

There are many parallels between the financial world and classic cars. They have become an asset class and a store of wealth – and their prices are now tracked 71




▶ middle,

and drive sent to the rear wheels, all of which is hidden under a gently ridiculous, quintessentially Italian bodyshell. It’s also the latest classic Ferrari heading towards the £1m club, following its predecessor, the 275, which can fetch upwards of £3m. So, beyond the Daytona, how does a keen amateur pick the right classic? Wenyon says, “It’s not rocket science. We never take a view on the overall market, but we will restore cars that are undervalued relative to wherever the market is at a point in time. If you try to be too clever things get complex, and then you get caught out. We believe there’s further movement in Daytona prices, which is why we bought 11 of them.” A move that’s set to pay off – 18 months ago they were selling for £450k, and now they are making £750k plus. JD’s market-agnostic, model-linespecific system can go a lot further than make and model, though. It’s about benchmarking as close to a traditional price performer as possible. Wenyon says, “Take the Lamborghini Miura SV. It’s the one to have and it’s a car that can achieve between £1.5m-£1.8m. The model that followed it was the Countach – however, within the various sub-models, there are very big differences. The early cars, like the Miura, are very pure and very simple, relative to the 1980s cars which became more complex, both visually and technically. But the 1970s model introduced geometric, angular design – it was a breakthrough. These cars have only recently been discovered by the broader market following relative stabilisation of Miura prices. Stabilisation can be indicative of an imminent shift, and in this case, the very best early ‘Periscopo’ Countach models are around £800,000, which is roughly double their value 12-18 months ago. “That, however, has put a relative price delta between the Countach and the Miura. Within the Lamborghini marque there’s a disconnect now. Take a Miura S as the model to benchmark – by rights, they should be roughly double the value of a Countach. The Miura SV should always have a premium over the S because it’s a better car and there are fewer of them – put another 35% premium on the SV, which is roughly consistent with the model range’s



▲▼ FAST FROM THE PAST: Italian sports cars – from the Ferrari 275 to the Maserati 3500 GT Vignale Spyder – are a safe bet, especially if JD has been behind the wheel

It’s not rocket science. We never take a view on the overall market, but we will restore cars that are undervalued relative to wherever the market is

stratification, and they should be fetching more than £2m, which they’re currently not. There should be movement there.” But it’s not just old-car money increasing old-car values. JD also keeps an eye on modern automakers when settling on future investments. Wenyon says, “Look at Maserati – it’s a relatively low-volume manufacturer that’s looking to expand to 50,000 units [per year]. The only way it can do that is to communicate and focus on the heritage of the brand. The 100-year anniversary was a huge pillar in this communication, and you get a sense that the classics get an appreciation as the brand’s profile increases. We saw this already with Aston Martin’s rebrand in the early 2000s. The positive effect on the DB series was extraordinary – they moved far more than the market did.” There are also broader forces beyond the automotive market set to pump up prices, which Wenyon recognises as significant. Chiefly, Chinese money. Few investors have engaged with classics owing to restrictions on bringing classic vehicles into the country, but legislators are in the throes of lifting the ban. “While we don’t take a view on the wider market, Chinese investment will undoubtedly have an impact, but it’s more of a progressive development. If you’re thinking longer term, for say five years, which gives you an opportunity to enjoy the car, developments in Asia make it a sensible place to put a meaningful part of your wealth. We intend to have a presence in Singapore in the next 18 months.” All of which is pretty good news for classic car owners, and JD’s bottom line. Hood says: “We always share the value we create with our customers. We work on splitting upside 50:50, and that’s why we have so many repeat serial customers. Wenyon’s even got the team tracking customer returns after they’ve restored a car with us or bought cars postrestoration. It brought a smile to my face when I stumbled across his ‘customer returns’ folder – they’ve all done better than most private equity funds.” Perhaps it’s time to put the (drum) brakes on conventional investments. H Matt Jones is digital features editor for GQ. For more on JD Classics, see


Power Surge London gets a taste of the emission-free future of motorsport this June. JEREMY TAYLOR samples Formula E behind the wheel IT WON’T SHATTER the sound barrier, but Formula E will serve up an electrifying spectacle when it races into Battersea Park on 27 June. The world’s first fully electric racing competition promises all the thrills of Formula 1 – minus the exhaust fumes and ear-splitting soundtrack. The ten-race series has already played out to capacity audiences in glamorous far-flung locations including Buenos Aires, Malaysia and Long Beach. A staggering 20 million TV viewers tuned in to see the opening round in Beijing last September. Its critics claim electric cars lack the high-octane thrills of a combustion engine. However, when I travelled to Miami earlier this year to watch an ePrix and have a go at driving the car, I left with no doubt as to why Formula E sparks the imagination of motorsport fans around the world. Because all ten races are held in city centre locations with Monaco-style narrow streets, there’s plenty to get the adrenaline pumping. The set-up makes overtaking especially difficult – forcing drivers to chance their arm at every opportunity. And with each car built to the same specification for the inaugural season, the action comes fast and furious. Speeds are certain to increase further for the 2015/16 season, when individual manufacturers are allowed to join Formula E for the first time. While organisers are keen not to draw too many comparisons with Formula 1,

The eMachines boast zero emissions and are charged from generators powered by glycerine: a sweet, non-toxic compound so pure I even sampled a mouthful 74


the sleek styling of the single-seat cars looks almost identical. It’s true many of the drivers have strong links with F1, too. The Formula E starting grid includes former F1 driver Nelson Piquet Jr; Nicolas Prost, son of four-time F1 champion Alain; Red Bull reserve driver Sébastien Buemi; and Jarno Trulli, who has competed in a total of 256 F1 grand prix. But unlike Formula 1, their new eMachines boast zero emissions and are charged from generators powered by glycerine – a non-toxic compound derived from plants. The sweet liquid is so pure I even sampled a mouthful myself. In Miami, I become only the third journalist ever to squeeze into the seat of a Formula E racing car. I’d been lucky enough to drive Damon Hill’s F1 car 12 years ago, and memories of that cockpit came flooding back as I pulled on my helmet. It was cramped, claustrophobic and thoroughly uncomfortable. Sweltering inside fireproof underwear and a race suit, the Miami sun just adds to the tension as I’m given a final debrief. Formula E cars don’t need a fuel tank, but there are still major risks involved. “Anything that carries such a large amount of energy can be dangerous,” explains the incident commander, Jonathan Webb, ever so helpfully. “One of the main risks in F1 is fire, but at least you can see the flames and take appropriate action. “In Formula E it’s different because the cars pack 800 volts. You can’t see that until you touch it and then it’s too late.” To combat the threat, track marshals are equipped with pen-like probes that check the bodywork isn’t ‘live’ following an accident. Drivers are also briefed to leap from the car after a crash, eliminating the risk of becoming a potentially fatal earth by stepping onto the ground. Once I’m in my safety clothing, pit crew clip a HANS device to my helmet. The ▶ PHOTOGRAPH by LAT Photographic



Formula E fans are able to influence the outcome of a race by using an online voting poll called FanBoost. The driver with the most votes gets an extra five-second boost of power during each ePrix.

Race organisers use music to pump up the atmosphere at an ePrix. A live ‘EJ’ (naturally) provides the music.

The Swiss government has indicated it may relax the country’s restrictions on motorsport and pave the way for a future ePrix in Switzerland. The last motor race here was in 1954, after which the sport was deemed unsafe.

The safety car for the Formula E series is the petrol-electric hybrid BMW i8. It’s the only car on the track to produce exhaust emissions.

Formula E races last 40 laps, but instead of refuelling, the drivers come in after 20 laps to change cars. It can lead to chaotic scenes in the pit lanes, adding to the excitement of the race.





◀ CHARGING AHEAD: Carrying a 200kg battery pack, Formula E cars produce the equivalent of 250bhp, hitting 60mph in three seconds. For the 2015/2016 season, individual manufacturers are invited to enter, promising even higher speeds

▶ Head

And Neck Support system reduces the risk of a serious neck injury in cases where there’s an impact. Then I step onto the seat of the car and slide my legs all the way forward until I’m virtually lying down. A five-point safety harness is pulled tight before the quick-release steering wheel is attached. The car has a five-speed automatic gearbox, which is operated by paddles on either side of the wheel. It also has a lever to activate energy regeneration under braking, effectively recharging the lithium-ion batteries during a race. An LCD readout on the steering wheel feeds me vital information about the car’s 200kg battery pack, while three small dials

Formula E cars have a top speed of 150mph. However, the low centre of gravity means I’m taking corners at speeds I would never try in a conventional road car 76


in the centre control power and torque. My right foot operates the accelerator – the left operates the brakes. There’s no key, I just flick a switch and the car is ready to race. Driving down the pit lane I have a speed restrictor set at 30mph – even when I press my foot hard to the floor. But when I deactivate the system, the surge of power pins me back in my seat. I’m hurtling fast towards the first corner in second gear, then swinging out wide to cut back across the track and clip the apex of the curve. Formula E cars produce the equivalent of 250bhp, race to 60mph in three seconds and have a top speed of 150mph. However, the lightweight body construction and low centre of gravity mean I’m taking corners at the kind of speeds I would never try to attempt in a conventional road car. By the third lap I’m powering down the straights with my foot to the floor. There’s no speedometer and the only thing restricting progress is the battering my helmet is taking in the slipstream. I can barely stop my head from wobbling; little wonder the drivers have such thick necks. Far from being silent, the car produces 80 decibels, slightly more than an average road saloon. The noise is created by

a combination of the electric drivetrain, the 18-inch Michelin tyres and various spoilers. From inside, it sounds like a jet fighter, although admittedly a muffled one. By the end of my seven laps, I’m a total convert. Miami petrolheads are more used to watching V8-engined NASCAR races, but it’s clear the growing crowd watching are enjoying the power of electric, too. Later, Nelson Piquet Jr explains why Formula E is so important: “It will fast track the development of battery-powered cars, especially when manufacturers sign up from next season. Everybody will be racing to build more efficient, lighter power packs, which will eventually filter down to the cars we drive every day on the road. “The cars we use on the track will get better and better. You have to remember that F1 has been developing for 70 years. By comparison, 18 months ago we didn’t have a single Formula E car built.” Boris Johnson, an avid supporter of electric cars, has given his person approval to the London ePrix and there’s little doubt the event will be a sell-out. And, of course, you won’t need your ear plugs… H For more information and tickets for the London ePrix visit



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The Car’s the Star Geometric sculptures in vintage Ferrari blues, the crushed remains of a road trip and an X-rayed Mini – let MELISSA SCALLAN guide you through an eclectic collection of auto art

£400-£2,000 TOM BLACHFORD, 1995 CAMINO MONTE ■


Using only the light from a supermoon, Australian Tom Blachford crept around Palm Springs in the dead of night, taking photographs of its classic, mid-century architecture. Blachford was struck by both the attractiveness of the desert resort and the lack of street lights, clouds and light pollution, which made it perfect for night-time shots. Seeing the beautiful, atmospheric photographs at his first exhibition, Palm Springs residents gave him access to their homes and lent him nine vintage cars. A pristine Dodge Polara, apparently hurriedly abandoned, sits alone outside the Ship of the Desert, so named for its curved living room overlooking the area, which resembles a ship’s bridge – and the two upstairs bedrooms that are entered via an outside gangway. Courtesy of the artist:









Architecture, football and vintage cars are just some of the passions of Betirri Bengtson, a native Mexican now living in Houston, Texas. A practising architect, he has also received various artwork commissions: his bodiless football players featuring in a series of paintings to celebrate the success of Brazil’s Sport Club



Internacional, in association with Reebok; a depiction of the evolution of the Lamborghini marque, from 350GT to Aventador, for the Houston Lamborghini Festival; and a huge 12x35ft mural at a Texas sports complex. With only 39 Ferrari 250 GTOs ever produced, this image is almost certainly the closest that you’ll come to being the owner of this beautiful, rare and highly coveted sports car. But don’t be downhearted: at least you won’t have to worry about this version breaking down, eh? Courtesy of the artist:

Original, limited-edition Art Deco posters by leading artists

Limited to editions of 280, our newly-commissioned Art Deco posters feature glamorous holiday destinations around the world, ski resorts in the Austrian, French and Swiss Alps, and the world’s greatest historic automobiles. Over 100 designs to choose from, all printed on 100% cotton fine art paper, measuring 97 x 65 cms.

Priced at £395 each.

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In 2007, Cedric Christie bought 12 cars and invited 11 friends to drive across Europe with him to a series of art fairs, including Documenta, which takes place every five years. Christie re-sprayed the cars and decorated each one with a Documenta year, the curator’s

name, and decals of artists exhibiting that year. The drive was an exciting experience for them, especially as no one actually had a map. “We had the ultimate boys’ trip… it was just heaven,” Christie happily recounts. After returning from the trip, storing 12 cars posed a slight space issue – so Christie had them crushed, transforming six of them into sculptures. Pink Painting [pictured] represents the controversial Documenta 4 (1968) when exhibitors included Hockney and Beuys. Courtesy of the artist and Flowers Gallery





£4,200-£50,000 NICKY VEASEY, MINI ■

2009, C-TYPE PRINT, 118.9x84.1cm EDITION OF 5

Formerly an advertising photographer, it was a TV stunt (being asked by The Big Breakfast to X-ray the inside of a Pepsi can, at a time when the brand was running a promotion where one ring pull had a number on it worth £100,000) that led to Nicky Veasey discovering a fascination with seeing how things – fish, clothes, a Boeing 777 – look inside.



Veasey says the X-ray reveals the integrity of objects: natural forms are surprising and unique, and the most beautiful, minimal object might be, in Veasey’s words, “a right old Heath Robinson mess when you look inside”. Veasey X-rayed the Mini to celebrate its 50th anniversary. British, iconic, fun and instantly recognisable, the car is a fusion of science and art. Although it’s small, this was certainly not a simple project: X-rays are true to size, so it required 350 films to complete. Courtesy of the artist and Waterhouse & Dodd;

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Stop! Hammer Time… With hundreds of watches going under the hammer, how do you decide which brands are a good investment? ADRIAN HAILWOOD says IWC is a safe bet because it understands the need for balance

SUCCESS FOR A watch brand can be a double-edged sword. The buying public falls in love with one of your models. You produce more versions of it, even special editions, and then suddenly you can’t sell anything else. All your other collections are ignored, no matter how good they are or how much marketing you do, and you end up being seen as a one-trick pony. Even the best watchmakers can fall prey to this problem. Audemars Piguet struggles to generate interest in anything that is not a Royal Oak, Zenith does well with the El Primero but not much else and Hublot’s success is based on the Big Bang – or variants thereof. Even with Rolex, the Oyster Perpetual grabs the majority of the headlines. It has enough sub-categories within this range to create a huge variety of pieces but the Cellini collection, for example, is ignored by most Rolex buyers. IWC is one of those that pulls off the delicate balancing act of promoting all six of its collections without being defined by just one of them. From the simple elegance of the Portofino to the complication of the Da Vinci, there seems to be a relevant place for all the competing family lines. Pictured [right], the ‘Big Pilot’ is drawn from the company’s earliest aviation pieces, with a model selling at a recent Fellows Watch Sale for £5,100. These second world war navigator watches were created with precision pocket watch movements. The

IWC is one of those that pulls off the delicate balancing act of promoting all six of its collections without being defined by just one of them

rest of the pilot collection is sized at a more familiar diameter but the B-Uhr-inspired piece remains the most distinctive. Then there’s the Aquatimer [centre], part of IWC’s output since 1967 (and recently selling at one auction for just £1,600). Although late to the diving party compared to some manufacturers, IWC has achieved significant milestones. It was the first manufacturer to produce a titaniumcased dive watch and the first to produce a watch with a mechanical depth gauge. And then there’s the Portugieser collection [left] – always a little on the large size, sharing as it does with the Big Pilot a history of housing a precision pocket

watch calibre. Nevertheless, this recently sold at a Fellows auction and had a hammer price of £3,300. Always a civilian watch, this collection wears its large size with clarity and sophistication and the pictured Regulateur mixes the contemporary and historic themes to perfection. Maybe it’s all about moderation. IWC’s watches are a consistent feature at Fellows and regularly command good hammer prices. IWC is successful but not so much so that one of its styles overshadows the others, and equally there is no obvious area of weakness in its line-up – just a well measured offering for all tastes. H For rare and classic watch, auctions visit




THE GRAVES SUPERCOMPLICATION 1933 In the early part of the 20th century, the world’s wealthiest men played a game of horological one-upmanship that spawned some of history’s most complicated and historically important watches. Ultimately, victory went to the American financier Henry Graves Jr, whose 1933 Patek Philippe ‘Supercomplication’ had 24 complications, including a minute repeater with Westminster Chimes, grande and petite sonneries, a perpetual calendar accurate to the year 2100, an alarm, and a celestial chart for the New York night-time sky. Produced long before the advent of CAD technology, it held the title of the world’s most complicated watch until 1989, when it was beaten by another Patek – the Calibre 89. One record it maintains is that of the world’s most expensive watch, confirmed last year when it sold at auction for $24m, smashing its own record of $11m set in 1999.

The Test of Time Patek Philippe have manufactured some of the most significant watches in existence. ROBIN SWITHINBANK picks out ten of the best






1932 It’s often said (at least, in my circles it is) that if you close your eyes and think of a wristwatch, the first thing that will come into your head will look uncannily like a Patek Philippe Calatrava. In 1932, its round case and simple white Roman numeral dial became watchmaking’s defining trope – an aesthetic that has since been widely imitated. Its design was inspired by the Bauhaus principle of form following function, which goes some way to explaining its longevity – today, it is Patek’s flagship line. 1932 proved to be a significant year for the company, too. As well as launching the Calatrava, Patek Philippe was bought by Jean and Charles Henri Stern – whose great-grandson Thierry became president of the firm in 2009.

2005 It seems odd, but it wasn’t until 2005 that Patek created its first in-house chronograph calibre – ie, one that it developed and produced under its own roof. It wasn’t just any chronograph, mind. Not only did it have a vaunted split-seconds function (one that can time two events that start at the same time but finish independently) operated by a single pushpiece, but it was also the thinnest column-wheel chronograph ever made, coming in at 5.25mm thick. It was said at the time that it took a watchmaker two months to assemble and adjust the 5959’s movement, and its run was therefore very limited, making it highly collectable. Sotheby’s sold one in 2013 for more than £227k, almost £35k more than estimated.


It’s often said that if you close your eyes and think of a wristwatch, the first thing that will come into your head will look like a Patek Philippe Calatrava

There’s plenty of debate about which manufacturer made the first wristwatch and for whom. Some say Breguet for the Queen of Naples; some say Cartier for Alberto Santos-Dumont. Others (including Guinness in its book of records) insist it was Patek Philippe. In 1868 it created a wristwatch for a Hungarian countess: an ornate, rectangular, yellow-gold piece set with diamonds, which was more costume jewellery than timepiece. However, the countess’s watch did nothing to persuade gentlemen to empty their pockets of the time – men’s wristwatches didn’t begin to catch on until the Great War.




Thomas Gerber Photography

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Annual calendars aren’t exactly two-a-penny these days, but 20 years ago, they didn’t exist at all. Patek broke new ground in 1996 with its Ref 5035

ELLIPSE REF 3738 1977 The oval-shaped Ellipse had been on the scene since 1968, so there was nothing new about its looks by the late 1970s. What made the 1977 model gleam like a mirror in the sun was its movement, Calibre 240. It had a 22-carat gold micro-rotor set flush to the bridges, so that the whole calibre measured just 2.53mm thick. That made it the perfect base on which to add further modules so that Patek could create ultra-thin complicated watches, many of which would become icons in their own right. Calibre 240 is still in Patek’s collection, and still the brand’s thinnest selfwinding movement.


ADVANCED RESEARCH ANNUAL CALENDAR REF 5250 2005 The first of Patek Philippe’s groundbreaking Advanced Research pieces had a lubrication-free escape wheel made of a silicon-based material called Silinvar. Many experts agree that the introduction of silicon into watchmaking – spearheaded by Patek, Rolex and Swatch Group’s ETA, which collaborated on Silinvar – is the most important horological innovation of the past decade. Silicon is non-magnetic, frictionless, lightweight and can be manufactured to very fine tolerances in high volumes. Applied in the moving parts of a watch, it makes for a more accurate, efficient and reliable product that needs far less maintenance than standard brass.

Annual calendars aren’t exactly twoa-penny these days, but 20 years ago, they didn’t exist at all. Patek broke new ground in 1996 with its Ref 5035, which became the world’s first watch with a calendar display that only needed adjusting once a year at the end of February. Seen as a more affordable alternative to the perpetual calendar, which caters for February’s odd length even in leap years, it actually had more parts than its supposed superior and was thought to be no less expensive to make. The annual calendar was awarded a Swiss patent and has since become a Patek signature.





5175 GRANDMASTER CHIME 2014 For its 175th anniversary, Patek unveiled the most complicated wristwatch it has ever made. The Grandmaster Chime has 20 complications displayed over two dials, either of which can sit face up thanks to the watch’s 214-part reversible case. Two of those complications had never been seen in a watch before – a date repeater that chimes the date on demand, and an acoustic alarm that sounds the alarm time – and it was the first Patek wristwatch with a grande sonnerie, which chimes at the top of every hour and every 15 minutes at the half and quarter hours. The seven planned for production were each priced at approximately £1.73m and unfortunately for you (as if you could afford one) they all sold in a flash.


NAUTILUS REF 3700 1976 It’s a curiosity that the decade that almost killed off the Swiss watch industry is also the decade that gave us some of watchmaking’s most enduring designs. In the 1970s, while the quartz crisis was pillaging traditional Swiss watch factories, a freelancer by the name of Gérald Genta emerged as the watch designer nonpareil. He worked for Audemars Piguet, creating the iconic Royal Oak in 1972; for IWC, where he updated the Ingénieur in 1976; and for Patek in the same year in a marriage of minds that produced the portholeshaped Nautilus, a steel sports watch that shared a name with the world’s first nuclear-powered submarine. Few watches boast so perfect a blend of horology and masculinity.

1989 Patek pulled out all the stops for its 150th anniversary and created Calibre 89, still judged – by most experts at least – to be the most complicated timepiece ever made. It had an astonishing 33 complications, took nine years to build, and was made up of 1,728 parts. But who’s counting? (They were.) Among those complications were an Easter date indication and a secular perpetual calendar with a retrograde date indication that won’t need adjusting until the 28th century. Both functions were awarded Swiss patents. Only four Calibre 89s have been made, which explains the price tag – in 2009, the last example to appear at auction went under the hammer at 5.1m Swiss francs.



GRAND EXHIBITION The Patek Philippe 175th Anniversary Collection, including the Grandmaster Chime, will be on display at the Watch Art Patek Philippe Grand Exhibition London 2015 from 27 May to 7 June. Taking over the whole of Chelsea’s Saatchi Gallery, the exhibition will celebrate Patek Philippe’s tradition of high-precision watch manufacturing, an insight into the company’s 175-year history as well as its heritage in the domain of haute horology. See more at

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


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

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Fashion Forward Fashion house Louis Vuitton is bidding to be a major player in the watch industry with two new models, says ROBIN SWITHINBANK A FEW YEARS ago, there was a lot of chatter in watchland about what impact luxury fashion houses making high-end timepieces might have on the traditional watch industry. Bulgari, Chanel and Hermès were all part of the debate, and in its way, so too was Montblanc. With piles of cash, sophisticated marketing machines and global retail networks at their disposal, they looked a real threat to the old guard. But of late, the story’s gone quiet – partly because of the threat of smartwatches, partly because of the uncertainty caused by the all-powerful Swiss franc, and partly because Patek Philippe, Rolex, TAG Heuer et al are all very good at making noise of their own. But it hasn’t gone away. Not at all. There’s no better illustration of this than what’s going on at Louis Vuitton. Vuitton, as the fashion darlings call it, has been in the watchmaking game since 2002, when it launched the Tambour, a watch with a case shaped like a 1970s salad bowl. Lots of incarnations followed; none cleverer than the ingenious Spin Time models, which tell time using spinning cubes, instead of hands. Despite these highlights, the Tambour hasn’t really caught on. This, I’ve no doubt, is why last year Louis Vuitton switched tack and introduced us to the Escale Worldtime, a blindingly good timepiece. This was a Swiss watch that looked like it really didn’t want to be Swiss. The painted dial showing 24 time zones looked like the winning entry from an

This was a Swiss watch that looked like it really didn’t want to be Swiss. The design was playful and creative – about as Swiss as a threesome in a campervan

art competition to encourage depressed kids from the developing world to sort themselves out. And it didn’t tell the time using anything as conventional as hands – instead it had three discs revolving past a yellow line. The design was playful and creative, and, all told, about as Swiss as a threesome in a campervan. This year, the Escale is back. Twice. Sticking with the time zone theme, there’s the Escale Worldtime Minute Repeater (pictured), a 44mm pink gold and titanium piece with a repeater activated by pulling one of the lugs, which are inspired by Louis Vuitton trunk corners; and the Escale Time Zone, a 39mm steel GMT watch that does more than most of its ilk by handily showing the time in 24 time zones simultaneously. Now, while the Worldtime Minute Repeater is undeniably the stuff of collectors’ dreams, it’s actually the Time Zone that could come to define Louis Vuitton’s assault on the traditional watch market. The reason for this is that the minute repeating version is £280,000 and will be made to order. Which is all very nice, but it’s unlikely it will do much to make consumers flock to Louis Vuitton. By contrast, the Time Zone is £4,000, a considerably more egalitarian price that puts it in Rolex Oyster Perpetual territory, or up against the entry-level stuff in Omega’s future-proofed Master Co-Axial line. That suddenly puts the dandyish charms of Louis Vuitton under the noses of the biggest luxury watch-buying demographic. Which is, of course, where it starts to get interesting. So, should you buy one? Heck, why not? If nothing else, sporting one of these says you’d consider a threesome in a campervan – and you never know when that might come in handy, do you? H

▲TIME WARPED: Louis Vuitton’s Escale Worldtime Minute Repeater is handpainted and costs a cool £280,000



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Hits All the Right Notes You needn’t be master of the keys to make use of the new Steinway. The world’s best pianomaker has tinkered with the ivories so you can put on the finest live performances without lifting a finger

STEINWAY & SONS It’s all well and good buying one of the best grand pianos in the world, but unless you happen to be a concert pianist you’re not really going to do it the justice it deserves, are you? That’s where Steinway & Sons’ new Spirio comes in. Steinway has been making the world’s finest traditional grand pianos for more than 160 years, and now it has perfected a system that plays them for you. The Spirio produces the most accurate reproduction of live performances ever achieved: delicate pedalling, subtle phrasing, soft trills and thundering fortissimos are all replicated with unparalleled accuracy. Steinway & Sons is recording a new catalogue of music for the system, featuring the roster of more than 1,700 Steinway Artists performing a wide range of genres. Chopsticks, we assume, is not included. H More information:

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Get Your Water Wings Named after the winged horse Pegasus, this 53m super yacht is one of the finest you’ll find for charter in European waters. Built with entertainment in mind, the only decision now is who to take with you… AFTER AN EXTENSIVE refurbishment in 2009, Pegasus is one of the finest yachts for hire in the Aegean. Her home in Greece explains the name, but that’s not the only mythical thing about her: every detail of this 53m Feadship is out of this world. She’s been built with entertainment and lounging in mind, with 265 sq ft of outdoor space shared across four distinct areas. The main deck is an extensive space with a table that lowers and converts into a day bed. The pool deck, with full bar and grill, includes a seawater pool with a glass side that overlooks the aft. Then there’s the lounge deck allowing for al fresco dining for up to 22. It’s a great spot to enjoy sundowners – and even has the option to create shade with an ingenious tarp tent.

Finally, there’s the ‘beach club’. This includes a folding bathing platform that doubles up as a submersible ramp, as well as a side platform for mounting the yacht’s two jet skis. There’s also an eight-metre luxury tender on board capable of 35 knots.

The modern interior has an eclectic, multicultural theme – where many yacht interiors are either too bland or too bling, Pegasus gets the balance just right

That’s not to say Pegasus is a slouch. Thanks to her two Cat engines pumping out 2,800hp, she’s perfect for islandhopping around the Aegean Sea. Inside, there’s room for 12 guests, plus a crew of 13. The contemporary interior has an eclectic, multicultural theme: there’s Burmese teak flooring, black American walnut furniture and a pan-European influence from renowned interior design houses including Italy’s Romeo Sozzi and Spain’s Tresserra. The look is finished off with a collection of post-cubist sculptures, bas reliefs and photographs. Where many yacht interiors are either too bland or too bling, Pegasus gets the balance just right. H To charter Pegasus, call 020 7099 0941 or email;




Tactical Retreat The Mulia resort in Bali is a five-star world unto itself. The only problem, LAURA MILLAR finds, is having to leave...




IT’S TIPPING DOWN the day I leave The Mulia to head back to England. “The sky is crying!” jokes one of the (many) concierges. “It doesn’t want you to go.” Me neither, I think, bravely holding back my own tears. I’ve never been anywhere quite like this resort in Bali; within several hours of arriving, I have completely fallen under its spell. Imagine arriving onto what looks part crazed Cecil B. DeMille movie set, part paradise; everywhere you look, there are serried ranks of huge, white, female stone statues, guarding the pristine swimming pools like ancient handmaidens, while the tasteful interiors are something Christian Grey’s penthouse could only dream of. And if you can tear your eyes away from all that, there’s the customary picture-perfect, translucent, turquoise sea fringed by the regulation white, fine, sugarsoft sand. Basically, it’s awesome.

There are serried ranks of statues guarding the pristine swimming pools like ancient handmaidens, while interiors are what Christian Grey’s penthouse dreams of

◀ HEARTBREAK HOTEL: Offering opulent suites and villas, immaculate beaches, and a plethora of incredible restaurants, leaving The Mulia makes for a tearful goodbye

The Mulia opened in early 2013, immediately making its five-star neighbours (which include the St Regis and the Westin) feel a bit shabby. It’s already been garlanded with enviable awards, including the US Conde Nast Traveller reader’s choice. Its location, Nusa Dua, lies at the southernmost tip of the Indonesian island – a small, rareified enclave away from the popular backpacker hangouts of Kuta and Seminyak. I reach it via Java, on Garuda Airlines; the country’s national airline isn’t that well-known, but a new modern fleet and award-winning economy and business class cabins signal a new confidence in tourism. It’s certainly worth the 13 hours it takes to get there. Arriving at the lobby of the resort’s boutique hotel (the complex also houses a 526-room hotel and villas), I am practically mobbed by effusive staff eager to proffer me cool, wet towels, ▶





▶ genuine, warming smiles, and refreshing welcome beverages. This is one of those slick operations where you begin to suspect every single member of staff has Googled all guests before arrival and consigned their faces and names to memory. Each one impressively addresses you by your own moniker whenever you encounter them. The Mulia’s three sections are entirely distinct: the boutique hotel has 111 upscale suites; the larger hotel takes the role of more family-oriented resort; and a clutch of 108 villas is scattered across the hillside, which sleep between two and 12 people. But it’s in the food department that The Mulia really comes into its own. There are eight restaurants and bars to choose from, and when I say that one of my favourites was The Café – the buffet located in the family resort – well, I was as surprised as you are. Here, there are dozens of fresh food stations, where chefs cook to order, using only the best ingredients – a principle which runs throughout the resort. Executive chef Mike Corcoran, an affable Chicagoan, explains that the kitchens use only American beef, New Zealand lamb and Southeast Asian seafood. If you like sushi, head to Edogin for sashimi so fresh you can almost see its gills move, and a choice of fillets including black cod, sea bream and snapper. Table8, where the witty decor and authentic food could give Alan Yau a run for his money, specialises in Cantonese and Szechuan cuisine and does daily dim sum at lunch. And Soleil, the Mediterranean restaurant, holds a Sunday brunch so sumptuous, people come from far and wide to wangle a table. There are veritable cornucopias of oysters, lobster tails and tiger prawns, whole roast suckling pigs, and a dessert station that looks like an explosion in a sugar and

The suite boasts a hot tub on a vast balcony, and a loo which has a lid that rises automatically when you enter the bathroom, with a pre-warmed seat waiting 104


rainbow factory – in a good way. During my stay, I try two different types of accommodation. The first is a suite, boasting a fine view out onto the giant handmaidens, a hot tub on the vast balcony, and – possibly my all-time favourite hotel room feature – a loo which has a lid that rises automatically when you enter the bathroom, with a pre-warmed seat awaiting your regal behind. The overriding feel is oligarch chic, all metallic cushions here and directional lighting there. The second is a villa, with private pool and outdoor shower, and comparatively understated decor. But you probably won’t spend much time in either; other distractions, like the large and ultra-modern spa, beckon. Featuring sci-fi touches, such as an ice chamber (apparently Russians can tolerate staying in it for 25 minutes; I managed four), aromatherapy shower, and colour-therapy hammam, it offers a menu of indulgent facial and massage treatments. The fantastically well-equipped gym (so big the whole England team could train in here at once) has a programme of classes including tennis, yoga, circuit training and more. There’s a danger you’ll never leave, but not to explore your surroundings would be criminal. Bali has put its decades of oppressive Dutch colonial rule behind it, and offers up beautiful, ornate temples, shocking-green rice terraces, and even the odd monkey sanctuary. The hotel can help arrange a variety of excursions; well

worth doing is a trip to Uluwatu Temple, an ancient, crumbling edifice on a dramatic clifftop, where you can also experience a traditional Kecak dance, featuring impossibly elegant, long-nailed women, and very bendy men. Just outside the cultural capital, Ubud, is the best place to see rice paddies; men and women in peaked, straw coolie hats still tend to the rice crops by hand, as they have done for centuries. Within the town lies the aforementioned monkey sanctuary: an old forest given over to mischievous macaques which, it has to be said, have an even more relaxing life than cats. They lie around, scratching, preening, eating the occasional sweet potato, and just generally chilling out. It’s not unlike my stay at The Mulia, actually. But the difference is, the macaques aren’t crying, because they don’t have to leave. H


Return flights to Bali with Garuda Indonesia start at £596 for economy; £2,357 for business class from London. Visit

The Mulia Hotel has suites available from £575 per room per night, based on two adults sharing. Mulia Villas are available from £755 per night per villa. Visit



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Drinking in the History The Wellesley has built a first-rate reputation among London’s luxury hotels for its extra-mile touches, including historic cognacs, free Rolls-Royce transfers and superlative cigars, says SIOBHAN McFADYEN

STANDING OUT IN London’s competitive luxury hotel market is no easy feat. But it’s one that the art deco Wellesley manages with aplomb. How many other hotels in the capital have their own 32-metre yacht based in, er, the South of France? Exactly.

The location Situated conveniently in Knightsbridge, next to Hyde Park, the Wellesley’s setting and services are difficult to match. If you have a meeting nearby, you can use the hotel’s complimentary Rolls-Royce chauffeur service to drop you off. As long as you’re only going 1.5 miles – any further, and it’s an Uber for you, my friend. The room Plump for the Louis Armstrong suite – this three-room suite has one-touch lighting, an easy-to-use entertainment system, a giant bed, and an oversized bathtub to match. The latter begs you to have a good old soak with a bountiful array of Hermès goodies. No matter what time of the day or night you arrive, the 24-hour butler service is unobtrusively on hand to unpack, steam and press your clothes, arrange your dinner reservations or deliver an aperitif. The bars (and cigars) The Crystal Bar is mood-perfect for a quiet drink, and if you’re feeling extra indulgent then call on resident connoisseur Giuseppe

PHOTOGRAPHS by Michelle Chaplow

Should you be in the mood for a special treat, the Boutelleau 1800 and the Coutanseaux 1767 prove the adage that good things come to those who wait

SMOKE AND MIRRORS (CLOCKWISE FROM LEFT): The Wellesley is a restored 1920s townhouse; enjoy a cigar from Europe’s largest hotel humidor; the Oval Restaurant

Ruo for some advice. You’re in safe hands, as he has travelled the globe to assemble one of the most impressive whisky and cognac collections in existence. Should you be in the mood for a special treat the Boutelleau 1800 and the Coutanseaux 1767 are certainly worth checking out – and add credence to the old adage that the best things come to those who wait. Take a glass with you to the climatecontrolled Cigar Lounge, which boasts an incredible £1.5m collection and has the largest hotel humidor in Europe. Or head to the Jazz Lounge, which offers up treats in the form of singers including Rebecca Poole and American Songbook pianist and vocalist Sara Dowling.

The restaurant The hotel’s elegant Oval Restaurant is an undeniable touch of class, too. There’s an eclectic menu that appeals to all palates, with Italian executive chef Michele del Monaco offering twists on traditional dishes from his home nation. Choosing the best ingredients from around the world, from Peru to Italy and even closer to home in Scotland, Chef Monaco’s menu is a masterpiece. The delicious lobster linguine in a velvety Pachino tomato sauce is flown in fresh from the Isle of Mull and is outstanding, while the fillet of beef from Galloway is truly notable for its butter-like texture. H 020 7235 3535;




Lord for the Day The butlers, breeches and plot twists might not be included, but SELENA BARR says there is one way to play at being Lord Grantham

FOUR MONTHS HAVE now passed since the pheasant-shooting season closed on 1 February, and I am missing it terribly. Save for a few days controlling woodpigeon over peas, my beloved shotgun has sat idle in the safe. That was until an invitation to shoot simulated game at Highclere Castle landed on my doormat. As the setting for the award-winning ITV television drama Downton Abbey, the spectacular castle is one of eight venues the Really Wild Clay Company (RWCC) use for its high-octane roving days, which run from March until mid-August. “Shooting simulated game is a fantastic way to pull the trigger throughout the summer months,” explained RWCC’s Tizi McPherson, who helps oversee the days as well as working as a full-time shooting instructor for the Royal Berkshire Shooting Group, the parent company of RWCC. He added: “Plus, simulated game shooting is extremely cost effective. For just £275, Guns are presented with around 1,000 birds over five drives. An equivalent day shooting pheasants on Highclere would cost a lot more like £2,000 per Gun.” The day started with a traditional shoot breakfast at the Yew Tree Inn located on the edge of the estate run by a keen RBSS client, Simon Davis. After a full safety briefing from RWCC’s Robert Cross, each of the Guns were kitted out with a baseball hat, safety glasses and foam ear plugs.

I’ve watched Downton since the first series. It feels quite surreal to be shooting at the estate where it was filmed, but it’s great to play at being Lord Grantham 108


The 15 Guns then loaded up into 4x4s for the first drive on the southwest edge of the 5,000-acre estate. Known as Wayfarers, the drive was reached via an ancient avenue of limes, past the stunning Jacobean-style castle itself as well as an eye-catching folly called Heaven’s Gate. Just like on a driven pheasant shoot, the fully tweed-clad Guns and their loaders lined out on eight pegs. “Some simulated game shooting companies have been criticized in the past for spacing Guns too closely together,” revealed Cross, adding: “We always leave at least 25 yards between each peg.” Better to be safe than sorry. The attention to detail is second to none, with the would-be gamekeeper Paul Bassett and his team of trappers whistling and beating to push birds over the smiling Guns. The team operates six manual traps to ensure the targets are presented in as realistic way as possible. “Most Guns are surprised when they find out we use manual traps,” said Paul. “Unlike automatic traps, we can vary speed, direction, distance and curve very easily which all helps to create targets that fly like gamebirds.” Drive one saw the Guns presented with curving, crossing birds. Gun Svante Adde wielded his Beretta with expertise and powdered almost every clay that tried to pass him other than the spectacularly high ones. “My family and I have watched Downton Abbey since the first series; we are huge fans of the programme. It feels quite surreal to be shooting at the estate where it was filmed, but it’s great to play at being Lord Grantham for the day,” he admitted. Half way through the drive, McPherson blew a whistle to notify Guns and Loaders to switch places. Svante’s shooting partner, Tim Sykes unsheathed his 12-bore and quickly got ready for the whistle to blow again to start the second half of the drive. Clays poured over the line, giving Guns plenty of challenging sport. “One of the ▶






▶ great



at the pub when all shooting has finished.” One of the real highlights of the day was the grouse competition drive, which saw the Guns split into four teams. Held on the west side of the estate, each team was presented with 50 birds, while Cross kept score. The RWCC presents three different types of clay targets – midi, standard and a unique feathered clay. McPherson explained: “The feathered clays are always popular. We attach pheasant tail feathers to the clay disc to make its flight over Guns even more realistic. The top secret design took a while to perfect, but they add some fun to the day for Guns. We save the feathered clays for the competition drive. For every one hit, an extra £20 is given to the local air ambulance trust.” Competitive clay shooter Ian Cordingley regularly attends RWCC roving days. “Simulated game shooting is fast-paced and action-packed,” he shouted between shots with his Krieghoff. He added that roving days are a great way to meet like-minded people. “Most people come with just one or two mates, but everyone leaves with new friends. On a day like today I would usually shoot with my girlfriend Georgina, but she had to bail out at the eleventh hour. The other Guns and the RWCC team are so friendly I wasn’t left on my own, plus I got to shoot double the amount of birds.”

I do not understand people who lock away their shotguns all summer, do not practice and then ruin their expensive day’s grouse shooting in August because they cannot hit anything The day was rounded off with a threecourse lunch back at the Yew Tree before Cross announced the winners of the grouse shooting competition. Team Four, which consisted of Rod Bowen, Philip Manducar, Tim Sykes and McPherson (standing in for Georgina) were crowned the overall champions, taking home silver engraved letter openers as a prize. So, if you fancy a day’s shooting with all the trimmings of a full-blown driven pheasant day on a top-drawer estate, simulated game shooting is an affordable alternative. Unfortunately, valets, plot twists and Hollywood stars are not included. H Cost: £275+VAT per Gun, which includes everything other than felt-wad cartridges. For more details, visit: really-wild-clay-days or call 01491 672 900.

PHOTOGRAPHS by (previous page and above) Tweed Media, (bottom left) Nick Ridley

advantages of shooting simulated game is that it cannot be spoilt by the weather. Even if it is pouring with rain, the birds will still fly high and fast,” commented Svante before slipping a pair of new feltwad cartridges into Sykes’ broken Silver Pigeon Beretta shotgun. For the next two drives, known as Beacon South and Beacon North, the Guns shot with their backs to Highclere Stud, where HM the Queen’s racehorses are bred and trained. In a field covered with pretty yellow cowslips boasting far-reaching views across the surrounding Berkshire and Hampshire countryside, the Guns each shot 75 cartridges before switching places. Online property expert Peter Sherrard regularly shoots driven game. “Simulated game shooting during the close season gives me the opportunity to practice and keep my shooting straight,” he commented before dusting a left-and-right. “I do not understand Guns who lock away their shotguns all summer, do not practice and then ruin their expensive day’s grouse shooting in August because they cannot hit anything. To stay on top of your game, you need to keep shooting year-round.” RWCC’s al fresco elevenses were impressive. Guns were treated to barbecued partridge breasts on bruschetta with Berkshire-produced pork pies and cheeses. “We do not serve any alcohol during this pit-stop as Guns still have one further drive to shoot,” explained Cross as he collected the last entry for the charity sweepstake. “We take health and safety extremely seriously and save drinking alcohol for back

Our next Auction will be held on: 18th June 2015 at: Princess Louise House Hammersmith Road London W6 7DJ

Lot 1074 Vincent Rickards for James Purdey & Sons Ltd. A unique, exceptionally fine leather cased gun tool and cleaning accoutrement set for 12-bore to .410 calibre. Estimate £12,000 - £16,000



Shrine to Wine The sommelier isn’t short on suggestions at the once notorious Pétrus, now newly refined with French flair, says MARK HEDLEY

WITH A NAME like Pétrus – the hallowed right-bank bordeaux – it shouldn’t really surprise that wine plays a central role in this Michelin-starred Knightsbridge establishment. Upon entering, you’re faced with a giant cylindrical glass wine cellar. Like some kind of modern-day temple to Bacchus, it stretches from floor to ceiling. The tables are spun off from it like planets around the sun. There’s even a circular spirits trolley à la Mad Men that, if you’ll forgive the slightly stretched space metaphor, can shoot from table to table like some kind of drunken meteor. Indeed, Pétrus, in a previous incarnation at least, was renowned for getting bankers drunk. In 2002, five Barclays Capital boys spent more than £44,000 on one meal. It proved even more costly when they lost their jobs, thanks to the negative press coverage. Now, in its present form, it is a much more understated affair, far more fitting for our times. And rather than the brash bankers, it’s the food that does the talking. It’s unapologetically French from the



start – succulent, rich frogs’ legs are part of the canapé line-up, for example. A light ballotine of quail, morels, pancetta and charred lettuce set the tone for what is a rich but balanced tasting menu. The seafood courses – seared Orkney scallops (“the best I’ve ever had” scoffed my wife as she leaned over to steal more off my plate) and fillet of Cornish brill – were superb. They were made all the more delicious by some inspired wine selections (as you’d hope). Top of my list was the biodynamic Nuits-St-Georges Blanc Clos de l’Arlot burgundy, which was rapidly added to my basket at Corney & Barrow. I’m a savoury man, so I was the most surprised when one of the desserts stole the show: a playful take on a Black Forest gâteau, where lifelike cherries turned out to be made from chocolate, completing their look with shredded wheat stalks. It’s clever, delicious – and certainly worth shouting about. H Pétrus, 1 Kinnerton Street, SW1X 8EA; 020 7592 1609;

M RESTAURANTS 2-3 THREADNEEDLE WALK, 60 THREADNEEDLE STREET, EC2R 8HP Beef can be a divisive little devil. Revered around the world, many countries have their own unique tradition – so when former Gaucho head honcho Martin Williams set up his own shop last year, he sought to give his patrons access to more than just one nationality’s ideal. The result was M Restaurants, a venue serving up food and drink representing not one, not two, but six countries: the US, Argentina, Japan, South Africa, Australia and France. This is evidenced in our starter: a yellow fin tuna sashimi with ground wasabi is gloriously tender, flanked by a show-stopping chicken karaage with ginger and wasabi sauce, but also smoked duck with boudin noir. The karaage is fantastic, and made better still by a silky, beautifully complex 2010 Newton unfiltered chardonnay. The culinary journey continues with an Argentine wet-aged black angus sirloin and a South African rib-eye. The fat gently crackles between the teeth; this is steak at its opulent, juicy best. We’re even treated to a piece of wagyu you can cut with a fork. Sides are similarly well-judged, for the most part. Smoked mashed potatoes are the standout – tinged with the kind of smokiness only real wood chips can provide – and a Château Grand Village Rouge 2010 is both a great pairing and a refreshing departure from malbec. I leave sated, and converted: why limit yourself to the best of one nation when you could have the best of six? – MG 020 3327 7770;

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GOING, GOING, GONE In the recent Hollywood hit Gone Girl there’s a somewhat unlikely supporting role: “The bed is a Savoir, you can’t get a better night’s sleep,” says Desi, played by Neil Patrick Harris. Desi has created the ultimate luxury hideaway with no expenses spared. OK, he’s not done it for the most wholesome of reasons, but you can’t question the guy’s taste. No stranger to the spotlight, Savoir beds’ comfort is almost as renowned as the luminaries who have slept in its beds, including the likes of Sir Winston Churchill and Marilyn Monroe. Our favourite is this, the Winton. At £23,000, it’s not cheap, but can you put a price on a good night’s sleep? H For more info, see

PHOTOGRAPH by Dominic Blackmore

Let’s Just Sleep on It Savoir beds were first created for The Savoy Hotel in 1905. More than a century later, the beds are featured in the greatest homes, hotels and, er, movies in the world





Time to Tech it up a Level The City fringes have always been a place where creativity collides with commerce – and the new Atlas Building near the Silicon Roundabout is set to be a pinnacle of new design and investment potential

THE RISE OF the technology sector around Silicon Roundabout has not only had a commercial impact – helping to grow Tech City into a genuine challenger to Silicon Valley in the appeal for global talent – but it has also driven growth in the area’s booming residential market. This spring, work begins on the Atlas Building, which will rise 152 metres above City Road, making it the tallest tower in Tech City. The mixed-use scheme, which is being developed by private property development and investment firm Rocket Investments, will include a dramatic 40-storey residential tower [pictured], a ten-storey office building, as well as a new public piazza and retail space.

With a commanding silhouette and spectacular cityscape views across the City and the West End, the tower will be a collection of 302 apartments, including studios, one, two and three-bedroom

The Atlas Building will offer hotel-style amenities, including a gym, spa, swimming pool, 24-hour concierge and security and a private residents’ lounge

apartments and penthouses – all with either a private balcony or terrace. As well as highly-specified homes, the development will offer residents hotel-style amenities and services, including a gym, spa, swimming pool, 24-hour concierge and security and a private residents’ lounge. The bold design by award-winning international architectural practice Make Architects aptly responds to the spirit of innovation that is transforming this part of London. With further growth and regeneration predicted, the Atlas Building offers the chance to invest – or indeed live – in one of the capital’s most vibrant areas. H To register interest visit or call the Louisa Strong on 020 7087 5259.




SLICE OF THE ACTION The Rocksure Group specialises in equity co-ownership of portfolios of luxurious apartments and villas around the world for capital gain and great value enjoyment. Talk about the best of both worlds ROCKSURE NORTH AMERICA has invented a way for high-net-worth individuals and companies to invest as little as $175,000 in prime residential real estate in Manhattan, one of the hottest property markets in the world, and be able to enjoy spacious and luxurious twobedroom, two-bathroom homes for just $130 per person per night. Investors in the Rocksure Manhattan Fund will co-own a portfolio of four highend apartments, each valued at around $3m or more, in fashionable areas of the city such as Midtown, Tribeca and Upper East Side. They will be able to stay at their choice of locations for a number of nights each year. At the end of the ten-year life of the fund, all of the properties will be sold and the proceeds returned to investors. There is no need for you to visit New York every year, if you don’t want to – investors can choose to use their annual entitlements to stay at any of the spectacular Rocksure-owned apartments or villas [see opposite page for a selection]. Rocksure Europe has similarly introduced the Rocksure London Fund, an entirely separate investment but, in structure and benefits, an almost identical twin of the Rocksure Manhattan Fund. This will be of interest to those living all across the UK, or indeed overseas, who desire occasional use of a choice of smart London apartments in high-demand areas such as Kensington and Covent Garden, and to have a foothold in the London property market. This investment would also appeal to companies seeking to

‘I prefer to sleep in an appreciating asset than in a hotel bedroom,’ explained one Brazilian investor in Rocksure’s London Fund 118



CLOCKWISE FROM MAIN: the view of the villa and pool at one of Rocksure’s Marrakech properties; the master bedroom in Rocksure’s Prague apartment; the living room in Rocksure’s Paris apartment

accommodate clients and prospects at a very competitive price. “I prefer to sleep in an appreciating asset than in a hotel bedroom,” explained one Brazilian investor in Rocksure’s London Fund. Just as prime residential real estate in London has been the bestperforming asset class in the UK over the last 40 years, so in New York it has been a pathway to considerable capital gain. Those interested in Stateside accommodation should also take a look at

Rocksure North America’s Liberty Fund, which includes an apartment in New York but will also offer spacious and luxurious apartments in San Francisco, Miami, Washington DC, Chicago and Santa Monica, the beach resort just 30 minutes’ drive or so from LA. It’s a great way to enjoy appreciating assets with friends and family and the chance of capital gain as the US economy strengthens again. H

Founders Discount for HEDGE readers able to act fast.

Contact Information Please get in touch: Rocksure North America LLC; Tel +1 646 583 1448; ■ Rocksure Europe; +44 1993 823 809; ■





HEDGE Legend # 2



Cautious, publicity-shy, and one of the world’s most compelling billionaires, SAFI THIND digs deep into the cult of Seth Klarman THE FIRST THING you note about Seth Klarman, 58-year-old manager of $28bn Baupost Group, is that his out-of-print book, Margin of Safety, costs up to $3,000 on Amazon. The second thing is the sparsity of information out there from Klarman himself. Of course, many hedge fund managers are noted for keeping their counsel, but Klarman is probably more secretive than most on this scale. Klarman was born in New York and graduated from Cornell University in 1979, later getting an MBA at Harvard Business School, where he was classmates with famous financiers Stephen Mandel and Jamie Dimon, as well as General Electric chief executive Jeffrey Immelt. Before founding Baupost, he worked at the Mutual Shares fund, now a part of Franklin Templeton Investments. But it was in 1982, after Klarman graduated from Harvard, that things really kicked off. He was asked by one of his former professors, Bill Poorvu, to help manage money; Poorvu and his partners, Howard Stevenson, Jordan Baruch and Isaac Auerbach had used their names to create the acronym Baupost. Though Klarman’s moniker wasn’t included in the formulation of the company name, he fast became the clear driving force behind the hedge fund’s success.

He has proved pessimistic about the economic outlook, criticising governments for their free money-printing policies and highlighting the danger of asset bubbles 122


Baupost was launched with around $30m capital, but in the 30-odd years since then, the hedge fund has swelled to around $28.5bn under management. Klarman has pursued a value investment strategy, in the mould of Warren Buffett, who he cites as a hero. Often this has been on the more conservative side, with up to 50% of assets held in cash at times. But he is also known to go for more challenging, illiquid and harder-to-understand assets, such as real estate, Russian oil and ex-US government assets, using derivatives to apply his trades. And this has been extremely successful – according to Bloomberg, Baupost gained an average of 19% annually up to 2014. It is this success, and the relative lack of information on the mechanics of the fund, that have made the 1991 book he authored so in demand. Stories abound of investors waiting more than six months to get a copy from the library. In any case, the book has become something of a collector’s item, and attests to the high regard that Klarman is held in among his investor peers. His own net worth stands at $1.5bn this year, money he has put to use in his philanthropic foundation, as well as becoming a partner of baseball’s Boston Red Sox, alongside principal owner, former commodities fund trader John Henry. Klarman has proved pessimistic about the economic outlook since the 2008 crisis, criticising governments for their free money-printing policies, highlighting the danger of asset bubbles and the difficulties of investing in a market that he claims is more complicated than ever. Still, the fund posted net returns as high as 8% in 2014. In March, Klarman said he was taking time away from the office after undergoing cardiac bypass surgery. His investors will hope the break doesn’t last too long. H


$1.47bn: Klarman’s total wealth, according to Forbes.

$350m: Klarman’s earnings in 2013.

11: Rank of Baupost among the world’s biggest hedge funds.

$4bn: Capital returned by Baupost to investors in 2013, for only the second time in its history, citing a lack of investment opportunities.

$350m: Approximate assets of the Klarman Family Foundation.

$1,200 to $3,000: The cost of buying Klarman’s out-of-print book, Margin of Safety, on Amazon.

1982: Year Klarman met his wife, Beth, on a Boston Harbour cruise. It’s the same year Baupost was founded.



Hedge 35 - The Motors Issue  

Hedge Magazine - Issue 35 - The Motors Issue

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