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ISSN 1757-7381

ISSUE . 4 4

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MONEY

MAN

Currency supremo Stephen Jen on what it takes to make it in FX


U M P I S N O T A G O O D I N V E S T M E N T N O M AT T E R W H AT Y O U M I G H T T H I N K O F H I S P O T E N T I A L R E

A G O O D I N V E S T M E N T N O M AT T E R W H AT Y O U M I G H T T H I N K O F H I S P O T E N T I A L R E T U R N . T R U M

S T M E N T N O M AT T E R W H AT Y O U M I G H T T H I N K O F H I S P O T E N T I A L R E T U R N . T R U M P I S N O T A G

M AT T E R W H AT Y O U M I G H T T H I N K O F H I S P O T E N T I A L R E T U R N . T R U M P I S N O T A G O O D I N V E S T M

AT Y O U M I G H T T H I N K O F H I S P O T E N T I A L R E T U R N . T R U M P I S N O T A G O O D I N V E S T M E N T N O M A

T T H I N K O F H I S P O T E N T I A L R E T U R N . T R U M P I S N O T A G O O D I N V E S T M E N T N O M AT T E R W H AT

F H I S P O T E N T I A L R E T U R N . T R U M P I S N O T A G O O D I N V E S T M E N T N O M AT T E R W H AT Y O U M I G H T

E N T I A L R E T U R N . T R U M P I S N O T A G O O D I N V E S T M E N T N O M AT T E R W H AT Y O U M I G H T T H I N K O

T U R N . T R U M P I S N O T A G O O D I N V E S T M E N T N O M AT T E R W H AT Y O U M I G H T T H I N K O F H I S P O T E

U M P I S N O T A G O O D I N V E S T M E N T N O M AT T E R W H AT Y O U M I G H T T H I N K O F H I S P O T E N T I A L R E

A G O O D I N V E S T M E N T N O M AT T E R W H AT Y O U M I G H T T H I N K O F H I S P O T E N T I A L R E T U R N . T R U M

S T M E N T N O M AT T E R W H AT Y O U M I G H T T H I N K O F H I S P O T E N T I A L R E T U R N . T R U M P I S N O T A G

M AT T E R W H AT Y O U M I G H T T H I N K O F H I S P O T E N T I A L R E T U R N . T R U M P I S N O T A G O O D I N V E S T M

AT Y O U M I G H T T H I N K O F H I S P O T E N T I A L R E T U R N . T R U M P I S N O T A G O O D I N V E S T M E N T N O M A

T T H I N K O F H I S P O T E N T I A L R E T U R N . T R U M P I S N O T A G O O D I N V E S T M E N T N O M AT T E R W H AT

F H I S P O T E N T I A L R E T U R N . T R U M P I S N O T A G O O D I N V E S T M E N T N O M AT T E R W H AT Y O U M I G H T

E N T I A L R E T U R N . T R U M P I S N O T A G O O D I N V E S T M E N T N O M AT T E R W H AT Y O U M I G H T T H I N K O

T U R N . T R U M P I S N O T A G O O D I N V E S T M E N T N O M AT T E R W H AT Y O U M I G H T T H I N K O F H I S P O T E

U M P I S N O T A G O O D I N V E S T M E N T N O M AT T E R W H AT Y O U M I G H T T H I N K O F H I S P O T E N T I A L R E

A G O O D I N V E S T M E N T N O M AT T E R W H AT Y O U M I G H T T H I N K O F H I S P O T E N T I A L R E T U R N . T R U M

S T M E N T N O M AT T E R W H AT Y O U M I G H T T H I N K O F H I S P O T E N T I A L R E T U R N . T R U M P I S N O T A G

M AT T E R W H AT Y O U M I G H T T H I N K O F H I S P O T E N T I A L R E T U R N . T R U M P I S N O T A G O O D I N V E S T M

AT Y O U M I G H T T H I N K O F H I S P O T E N T I A L R E T U R N . T R U M P I S N O T A G O O D I N V E S T M E N T N O M A

T T H I N K O F H I S P O T E N T I A L R E T U R N . T R U M P I S N O T A G O O D I N V E S T M E N T N O M AT T E R W H AT

F H I S P O T E N T I A L R E T U R N . T R U M P I S N O T A G O O D I N V E S T M E N T N O M AT T E R W H AT Y O U M I G H T

E N T I A L R E T U R N . T R U M P I S N O T A G O O D I N V E S T M E N T N O M AT T E R W H AT Y O U M I G H T T H I N K O

T U R N . T R U M P I S N O T A G O O D I N V E S T M E N T N O M AT T E R W H AT Y O U M I G H T T H I N K O F H I S P O T E

U M P I S N O T A G O O D I N V E S T M E N T N O M AT T E R W H AT Y O U M I G H T T H I N K O F H I S P O T E N T I A L R E

A G O O D I N V E S T M E N T N O M AT T E R W H AT Y O U M I G H T T H I N K O F H I S P O T E N T I A L R E T U R N . T R U M

S T M E N T N O M AT T E R W H AT Y O U M I G H T T H I N K O F H I S P O T E N T I A L R E T U R N . T R U M P I S N O T A G

M AT T E R W H AT Y O U M I G H T T H I N K O F H I S P O T E N T I A L R E T U R N . T R U M P I S N O T A G O O D I N V E S T M

AT Y O U M I G H T T H I N K O F H I S P O T E N T I A L R E T U R N . T R U M P I S N O T A G O O D I N V E S T M E N T N O M A

T T H I N K O F H I S P O T E N T I A L R E T U R N . T R U M P I S N O T A G O O D I N V E S T M E N T N O M AT T E R W H AT

F H I S P O T E N T I A L R E T U R N . T R U M P I S N O T A G O O D I N V E S T M E N T N O M AT T E R W H AT Y O U M I G H T

E N T I A L R E T U R N . T R U M P I S N O T A G O O D I N V E S T M E N T N O M AT T E R W H AT Y O U M I G H T T H I N K O

T U R N . T R U M P I S N O T A G O O D I N V E S T M E N T JIM N SIMONS O M AT T E R W H AT Y O U M I G H T T H I N K O F H I S P O T E Founder & CEO, Renaissance Technologies


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

Editorial

E DI TOR'S

L ET T E R

EDITOR

Mark Hedley SENIOR CONTRIBUTING EDITOR

Jon Hawkins ASSOCIATE EDITOR

Ben Winstanley STAFF WRITER

Max Williams SUB EDITOR

Vicky Smith ASSOCIATE EDITORS

Mike Gibson, Hannah Summers ASIA EDITOR

Cathy Adams

Design ART DIRECTOR

Matthew Hasteley DEPUTY ART DIRECTOR

Lucy Javanshir SENIOR DESIGNER

Abi Robinson DESIGNER

Bianca Stewart JUNIOR DESIGNERS

Annie Brooks, Nicola Poulos

Contributors Selina Barr, Sebastian Canderle, Jessica Furseth, Adrian Hailwood, Colin Hampden-White, Matt Hussey, Colin Lloyd, Paul Oberschneider, Melissa Scallan, Safi Thind, Natacha Tonissoo

Advertising SALES DIRECTOR

Michael Berrett ACCOUNT MANAGERS

Freddie Dunbar, Jason Lyon, Will Preston, Seth Tapsfield, Nick Webb, Nathan Wilgoss, Georgina Kerr

Printing Blackmore

B

ack in May 2016, the world made at least some sense. Brexit was just an ugly portmanteau rather than a political certainty. And Donald Trump was merely an irritating reality TV star with ambition as (surely) preposterous as his hairdo. At the same time, hedge fund managers had donated $48.5m to Hillary Clinton’s campaign – and a grand total of, er, $19,000 to Trump’s. If the Masters of the Universe were backing Clinton, then I knew where my money was going. And so did the pollsters. But Carl Icahn had different ideas. The billionaire activist fund manager was an advisor to Trump’s campaign, and was even offered a position in the coiffured one’s economic advisory council. By the close of play on Election Day, Icahn had made more than $700m on his stock portfolio, according to Bloomberg data. Mining, energy and insurance stocks made up the majority of this windfall – alongside shares in his own publicly traded company, Icahn Enterprises. That figure is a conservative estimate about his overall gains from the election. Although Icahn attended Trump’s victory party, he admitted to sneaking off early to get to work: his purchase of US stocks after leaving the party amounted to roughly a $1bn bet. As for the rest of us who bet the other way? I think Nader Naeimi, head of dynamic asset allocation at AMP Capital, sums it up best: “We need to get comfortable feeling uncomfortable.”

PUBLISHED BY

Square Up Media 5 Tun Yard Peardon Street London SW8 3HT +44 (0) 20 7819 9999 squareupmedia.com LEAD DEVELOPER

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Mark Hedley - Editor @ mark@squareupmedia.com

PAUL OBERSCHNEIDER Paul Oberschneider is a successful entrepreneur, angel investor, speaker and the author of new book, Why Sell Tacos in Africa? In this issue he tells us why avoiding needless procrastination is the secret to success. p27

COLIN HAMPDEN-WHITE Hampden-White is editor of the global publication Whisky Quarterly. He is a judge for the World Whisky Awards and the International Wine & Spirits Challenge. He tells us how to invest in the thing he loves most in the world. p42

NATACHA TONISSOO Natacha Tonissoo is a freelance travel writer based in New York. Away from her screen, she can usually be found checking out NYC’s new openings. We tapped into her knowledge for an insight into the city’s best hotels. p64

@mghedley

ACCOUNTS

MATT HUSSEY

Taylor Haynes, Caroline Walker FINANCIAL DIRECTOR

Steve Cole DIRECTOR

James Rolph MANAGING DIRECTOR

Stephen Laffey CEO

Tim Slee CHAIRMAN

Tom Kelly OBE

△ Cover image by David Harrison

© Square Up Media Limited 2016. 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.

Matt is an awardwinning photographer and journalist. He’s written for The Daily Telegraph, Wired, Yahoo and maintains a column on the Huffington Post. We sent him off to Ecuador for a bucketlist experience in the Galapagos Islands. p70

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ISSUE 44

Contents INDUSTRY • LUXURY • OPINION

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38

S HO RT S 16 Open Position 18 My Mayfair 22 On The Market 24 Picture This 27 Columns

F U N DA M E N TALS 34

Thinking Strategically

Why shifting his point of view was the key to success for currency strategist Stephen Jen

38

The Blue-Sky Thinker

Jean-Jacques Duhot talks systematic trading and using personal experience to succeed

42

Get into the Spirit

No grain, no gain… Colin Hampden-White’s advice on how to invest in whisky, wisely

46

Keep Calm and Carry On

Is Brexit such bad news for hedge funds? Dominic Hobson on how to ride the changes

T R AV E L 53 Watch 55 UK 58 Around the world 64 New York 70 Galapagos 76 Mustique 80 Mauritius 84 Art

R EWA R DS 96 Christmas Gift Guide 104 Watches 108 Golf 110 Motors 115 Wine 122 HEDGE Legend

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HUGO BOSS UK LTD. Phone +44 (0)20 7554 5700 hugoboss.com

The Art of Tailoring BOSS Stores 122 New Bond Street 178-180 Regent Street


SHORTS

It takes Swiss photographer Frank Oefner two months and more than 2,000 photos for a single image to come to life PICTURE THIS . 24 OPEN POSITION . 16 | MY MAYFAIR . 18 | ON THE MARKET . 22 | PICTURE THIS . 24 | COLUMNS . 27


OPEN POSITION BETH M WIENER

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Beth M Wiener, Partner-in-Charge, Alternative Investment Group, Marcum PAST: My path to becoming national practice leader for Marcum’s Alternative Investment Group really started with the birth of my twin girls. In 1995, I was looking to work for a local accounting firm that would accommodate a flex-time schedule, and Marcum came through. The irony was that I really had disliked everything about public accounting back in the days of my first job, but Marcum was the right place at the right time. It turned out to be the move of my career. We landed our first fund clients (hedge and private equity) in 1996-97, and I was assigned to do their audits. Within three years, we had enough fund clients to start a dedicated niche practice group. Marcum’s managing partner, along with my mentor in the firm, took me out to lunch one day and asked if I would run the group. We hired ten additional people that year for both audit and tax services, and it took off from there. I became a partner two years later. PRESENT: I run the day-to-day operations of Marcum’s Alternative Investment Group, which provides audit, tax and consulting services to hedge funds, private equity funds, funds of funds, management companies and their principals. I am responsible for everything from overseeing client service, to training and managing the team, to building the business nationally and internationally. We are continually innovating to ensure our services remain aligned with our clients’ needs. For

example, expanding from Grand Cayman, where we opened an office in 2002, we just announced our first office in Europe, Marcum RBK (Ireland) Limited, which is principally a service centre for our hedge and private equity fund clients. In addition, I serve on the firm’s national Diversity Steering Committee, I’m co-founder of a networking group for women CFOs in the alternative investment industry, and I’m very active on the board of the charity Help for Children/Hedge Funds Care. FUTURE: Ireland will continue to be a key focus for the group for the foreseeable future, as Marcum gains traction there as a major alternative to the ‘big four’ accounting firms. We will also be investing in more talent and infrastructure in the US, to capitalise on several mergers Marcum recently completed in various markets. H

LOUIS XIII Remy Martin’s Louis XIII is simply inimitable. Within its iconic Baccarat crystal decanter is 100 years of history. This isn’t an exaggeration: it literally takes a century to create the Grande Champagne cognac in every bottle. £1,995; louisxiii-cognac.com

PHOTOGRAPH by David Harrison

L O N G

– RICHARD DUNBAR, SENIOR INVESTMENT STRATEGIST, ABERDEEN ASSET MANAGEMENT

P O S I T I O N

G O I N G

“NOW IS THE TIME FOR COOL HEADS. THE US REMAINS THE COUNTRY FROM WHICH VIRTUALLY ALL DISRUPTIVE TECHNOLOGY OVER THE LAST 50 YEARS HAS EMERGED.”

O P E N


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Black Roe Poke. It’s an early form of Facebook flirting. More pertinently for food lovers, though, poke (pronounced ‘poh-key’) is a fish salad from the Pacific that’s currently a phenomenon in America – and has recently arrived in Mayfair in the form of Black Roe. This achingly stylish restaurant – all black surfaces, low lighting, and monochrome photographs of its fishermen on the walls – became London’s first poke outpost when it opened in March. One suspects that it won’t be the last. For poke occupies the much-coveted centre of the Venn diagram marked ‘delicious’, ‘healthy’ and ‘trendy’. Essentially raw fish, rice and dressing, you can see why LA and New York have fallen for its delicate charm. Black Roe’s ahi and

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– MW. For more information, see blackroe.com

Subscribe If you work in investment and have an office in London, you may be entitled to a FREE subscription to HEDGE. To apply, just fill out the form on hedgemagazine.co.uk

PHOTOGRAPHS by David Cotsworth

The lobster mac’n’cheese is fabulous, decadent comfort food – what you’d serve to a recently heartbroken friend who also owns a gold-plated toilet

yellowtail poke with spicy yuzu salsa is light and tangy, the rice sticking to tuna cubes like a coat of feathers. You scoop the whole bowl up, order another and don’t feel the least bit guilty afterwards. How could you? Further delights lurk on the menu. Grilled scallops with black quinoa managed to convince my seafood-agonistic dining partner that fish aren’t all bad. The whole lobster ‘mac’n’cheese’ is an appropriately decadent treat. It may be the most lavish comfort food in the city – what you’d serve to a recently heartbroken friend who also owns a gold-plated toilet. It’s also fabulous, although it must be said that the lobster is somewhat overwhelmed by its creamy blanket: the effect is mac’n’cheese with a touch of lobster, rather than lobster garnished with mac’n’cheese. However, final word goes to the smoky lamb rack with coconut. We ordered it on a whim and by God did we whim well. Rich, spiced and packed with flavour, it’s the type of dish where you almost resent each mouthful for emptying the plate. Eating it was sensual (almost sexual?) experience. Who knows for certain if poke will prove a fleeting craze or whether it will soon be as ubqituous as sushi. With such a formidable menu, Black Roe should be here to stay. H


Delve into Dubrovnik A City for All Seasons Known as the ‘Pearl of the Adriatic’, the magical, medieval city of Dubrovnik is Croatia’s crowning glory and has quickly become one of the world’s most sought-after city breaks. Home to some of Europe’s most beautiful buildings, walk the character-filled streets of Dubrovnik Old Town, witness the dramatic landscapes of the Dalmatian Coast – a backdrop to film and TV favourites such as Star Wars and Game of Thrones – or stop by one of the fascinating museums, to learn more about the complex history of this UNESCO World Heritage Site. For a stylish seafront resort, look no further than the award-winning Sun Gardens, Dubrovnik, located on the pristine Dalmatian coast. Set amidst lush gardens overlooking the crystal waters of the Adriatic Sea and Elaphiti Islands, the resort is the perfect place to relax and reconnect. Indulge at the award-winning Spa by OCCO, watch the rose-coloured sunsets from the stunning roof terrace and savour gastronomic delights in one of the resort’s nine restaurants. Whilst the resort’s essence as a relaxing retreat appeals to couples seeking a romantic luxury beach holiday, it also boasts fabulous family facilities, including the newly-enhanced Marco Polo Children’s club and superb sports academies, to ensure guests of all ages enjoy an exceptional luxury holiday experience.

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ON THE MARKET WINTER

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. W I N T E R

Life in the fast lane Historic, classic and racing cars don’t just look fantastic – they’re tonnes of fun and can also prove a sound investment. Whether you’re already immersed in the world or looking to make your first foray into classic car collecting, the inaugural Olympia Historic Automobile Fair & Auction – in association with Coys auction house – will provide all you need to know. The event brings together a collection of stunning vehicles in one of London’s most iconic exhibition spaces, and will see 100 cars go under the hammer, too. The Olympia Historic Automobile Fair & Auction takes place from 17-19 February 2017. HEDGE readers can get reduced-price advance tickets, saving £25 per ticket, by quoting HEDGE when booking. See olympiahistoric.com for more information.

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Monkey business Artistic husband-and-wife duo Claude and the late FranÇois-Xavier Lalanne worked together under the banner of ‘Les Lalanne’ from when they met in 1952, combining their distinct styles – he: bold and majestic animal scultures, she: delicate flora and fauna-inspired pieces – to create collections that achieved iconic status. A new show at Ben Brown Fine Arts brings together the duo’s most celebrated works, including ‘Babouin 1984’ [pictured, right] – a cast-iron baboon with a working fireplace in its belly – as well as new pieces created by Claude in the studio she shared with her husband for over half a century. ‘Claude and François-Xavier Lalanne’ is on from 24 November 2016-26 January 2017. For information, see benbrownfinearts.com H


L I F E

I S

A B O U T

M O M E N T S

C E L E B R AT I N G E L E G A N C E S I N C E 1 8 3 0

CLIFTON RED GOLD, 39 MM SELF-WINDING www.baume-et-mercier.com


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PICTURE THIS

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PHOTOGRAPHY FABIAN OEFNER

SUM OF ITS PARTS FABIAN OEFNER When it comes to food – and indeed societal norms – deconstruction is as faddy as it is foolish. Fortunately, when it comes to art, it works rather better. For a classic car fan, the idea of a pristine 1957 Maserati 250F exploding into a thousand pieces sounds like sacrilege. But when Swiss photographer Fabian Oefner makes the concept a photographic reality, the results are rather more appealing. It takes Oefner two months and more than 2,000 photos for a single image to come to life. They’re created by deconstructing scale-models, shooting each component, piece by piece and then compositing it all together. The ‘Disintegrating II’ series consists of five images. See more at madgallery.net

PHOTOGRAPH by Fabian Oefner

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DEVELOPMENT DECISION MAKING

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Why Are You Waiting? Entrepreneur and angel investor

PAUL OBERSCHNEIDER explains why following your instincts and avoiding needless procrastination are the secrets to successful business

The tendency to procrastinate is something I often see in business. On Wall Street I learned to take decisions quickly. If you don’t, you get stuffed

The procrastination indoctrination The tendency to procrastinate is something that I see all too often in business. When I was a futures trader on Wall Street, I learned that you need to take decisions quickly, and if you’re wrong you can always course correct. If you don’t, you get stuffed; hanging on to a losing position hoping it will turn around. I think in some ways procrastination is ingrained into us from school age. Teachers grade our work based on if we have the right answer, so our mindsets are naturally focused on knowing all the answers before committing. My guess is that you may probably have an idea for your business or career move that you are hesitant about. You’re probably concerned it won’t work, you’re not ready or you need more information. This is how most of us operate – we hate the unknown so we let things carry on as they are. The thing is, since most people think that way, anyone who thinks differently and just tries begins with a distinct advantage. They are far down the road before anyone else gives it a go. The spaghetti and marshmallow tower There is a great book called A More Beautiful Question by Warren Berger that includes an experiment measuring a group of kindergarten children against Harvard MBA students. Each group was given spaghetti, string, tape and a marshmallow and told to assemble the tallest structure they could in 15 minutes. The outcome is probably no surprise. The grads spent too much time arguing about the project and who would be in charge. Meanwhile,

the children jumped right in and worked, adapting quickly to successes and failures. As Berger describes, “the point of the experiment was not to humble MBA students, but rather to better understand how to make progress when tasked with a difficult challenge in uncertain conditions.” What we learn from this is the power of just cracking on and trying things quickly to see what works and what doesn’t. Learn as you build. If you’re wrong, you can make adjustments and get the model right. When I started my first company, I had no idea what I was doing. I was flipping small scale real-estate developments but I finally found the formula that worked. By 2006, my business was a team of 450 employees in 35 offices building two million square feet of retail space and hotels. Like those kids in the spaghetti experiment, I just cracked on, and every time I hit a roadblock, went another way. To avoid procrastination, there are a few key tips that you should remember: Decide what you want to achieve. Remember, your circumstances are unique, so look at the opportunities available. Create a vision for your future and commit to it. Pick one thing: Every change starts with a single step. Focus on one thing at a time. Start now: You may be afraid you’re not ready or you don’t have all the answers. Most people are afraid of those same things, but if you have the courage to start now, you begin with a distinct advantage. The path to success is never a straight line from A to Z. Learn from mistakes, try something new and keep making adjustments until you get the model right. H

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IN 1992 I met a man called ‘Elvis’ in an Estonian sauna. In no uncertain terms, Elvis warned me never to commit to a deal if Finnish businessmen showed interest, because they always enter the market too late. They want total governance, total transparency and everything needs to be de-risked. Naturally, I forgot his fleeting comment almost immediately. Eighteen years later, my property development firm was booming. It was 2006 and in the small countries of central and eastern Europe there was a tidal wave of cash pushing yields to record lows. With values soaring, I was running around London lining up queues of investors for a property fund. I also had a target of purchasing a publicly traded company in Helsinki, but one day I got a call from a Finnish private equity firm asking about a business of mine they wanted to purchase and the words of Elvis came flashing back.

With just a hunch, and despite an explosive market, I made the sudden decision to fold. At the time it seemed liked madness but for the next year and a half, I sold off my businesses one by one. Just as the last company sold in 2008, the crisis hit, and the economy crashed. The music had stopped, but I was out watching the values plummet all over the world. Whether you call it instinct or just luck, I was suddenly a guru. The fact is, if I had procrastinated, waiting for everything to be perfect, my story would have panned out very differently.

Why Sell Tacos in Africa? by Paul Oberschneider is due to be published by Harriman House in January.

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INVESTMENT PRIVATE EQUITY

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Behind Closed Doors If you’re considering investing in private equity, SEBASTIAN CANDERLE advises caution: the risks are high and the returns not necessarily worth it

SHORTS

IF YOU’RE AN investor eager to allocate your capital to private equity, you should keep a few recent developments in mind. Because of the desperate search for yield in this low interest-rate environment, last year saw more funds raise new money than at any point since the peak of 2007. And this year has seen a long list of PE firms burst their hard cap on new funds. This excess capital should tell you that investment returns from the current vintages are likely to be much lower than for previous ones. It is common knowledge that there are at present too many fund managers chasing too few deals. Research papers indicate that the PE industry is sitting on more than $1.2 trillion of dry powder frantically looking for a home. Most single-fund general partners are closing one to two deals per year, compared to the more standard rate of three to four prior to the financial crisis. This will slow the rate of exits for two main reasons. First, in a slower-growth economy, it will take longer to create value. And secondly, given the excessive valuations paid at the outset, getting a similarly generous price upon exit will prove challenging. Another side effect of slower dealmaking is that it has led some fund managers to do fewer transactions per vintage. As a consequence, each investee company represents a larger portion of the entire fund. This could prove an expensive

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mistake – these investment vehicles will not be appropriately diversified. To justify this unforeseen situation, a few financial sponsors have declared that their new strategy is to deploy capital over a ‘select’ number of transactions. It feels like rationalising after the fact. By changing the risk profile of their funds, managers could damage returns. The loss of one or two investments would have a greater impact on the whole portfolio if only six or seven investments were made out of these vintages rather than the more traditional ten to 12. Just look at what happened to Terra Firma after allocating 30% of its fund commitments to EMI. This overconcentration of portfolios is only one issue facing the industry. Financial sponsors have also failed to follow the most basic of riskmanagement techniques. The typical profile of a post-2008 PE fund is as follows: ■■ Several companies in the portfolio are secondary buyouts, some of them even tertiaries or quaternaries – in my experience, these deliver overwhelmingly lower returns than primaries; ■■ Often, one or several investees are repurchases (what I term relapse buyouts, or RBOs), having been already owned by the same fund manager in the past, though through another vintage fund. So, for instance, the PE firm decided to acquire the target out of its fund VI but it had already also been an investor in the business out of its fund IV; ■■ The fund manager has started taking part in transactions that it used to shun in the past (eg, delistings, minority investments, new sectors or geographies where it has no prior experience); ■■ Entry multiples are at an all-time high; not so surprising in an environment where tradable securities like treasuries, corporate bonds and ETFs – and by extension equities – have been artificially inflated by excessive quantitative easing. For all these reasons, returns out of the current vintage will be lower than for previous vintages, maybe significantly so. And yet, recent trends appear to indicate that institutional investors are happy participating in PE funds with limited visibility on recent performance.

Owing to the slow pace of investing, many fund managers come to market with a new vintage without having exited a meaningful portion of their existing portfolio. The appetite for risky asset classes means that it is easier than ever for PE firms to raise money. An increasing number of fund managers successfully close their fundraise within months of launching the marketing process. British outfit Cinven raised its sixth vintage in the first half of 2016 – after just four months on the road – when it had only divested one company (out of 15 portfolio companies) from its fifth fund of 2013. Cinven VI was reportedly twice oversubscribed. French mid-market firm Astorg had exited none of the seven companies acquired out of its fund V (raised in 2011) before reaching the hard cap of its fund VI in June 2016. As I discussed in the past, this kind of rushed and oversubscribed fundraising usually does not bode well for future performance. So it looks like investment risk in the PE sector is at an all-time high while returns are likely to be much lower than those achieved before the financial crisis – a clear example that the efficient market hypothesis, for those who believe in it, naturally adjusts to changes in market conditions. In a close-to-zero interest rate economy, it is only logical that investment returns – even those of high-risk alternative assets – should dwindle. You have been warned. H Sebastien Canderle is the author of The Debt Trap: How leverage impacts private-equity performance, published by Harriman House.


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F U N DA M E N TA LS

I realised that this wasn’t just about the Thai baht – the crisis would take out currency by currency and country by country THINKING STRATEGICALLY . 34 STEPHEN JEN . 34 | JEAN-JACQUES DUHOT . 38 | HOW TO INVEST IN WHISKY . 42 | DOMINIC HOBSON . 46


FUNDAMENTALS

PHOTOGRAPHS by Firstname Surname

HEDGE

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COVER STORY STEPHEN JEN

Thinking Strategically

Stephen Jen, chief executive of Eurizon SLJ Capital, is regarded as one of the world’s foremost currency strategists, but to get there he had to change his way of thinking, finds SAFI THIND

PHOTOGRAPHS by David Harrison

SOMETIMES YOU COME upon moments that define your life. Stephen Jen, chief executive of Eurizon SLJ Capital, had a moment like that while sitting at a table in front of the Thai Central Bank currency chief. It was 1997. Jen was fresh into Hong Kong with Morgan Stanley who had hired him as its first emerging market strategist just the year before, plucking him from a cushy but staid economist role at the International Monetary Fund. He had taken the position to get a relatively easy entry into the currency markets – Asia was at that time a vibrant and diverse region with little threat of systemic risk. “I had a choice of working as the LatAm strategist in New York or London covering central Europe or Hong Kong and Asia,” he explains. “I chose the latter because I thought my first step into the private world would be more tranquil that way.” The Asian market was generally thriving and there was no sense of trouble in the region at the time. Jen had joined Morgan Stanley with a rigorous academic background and his thoughts were inclined towards the official line. He believed that countries like Thailand were steering their economies well and that whatever troubles the country may have in the currency markets would be sorted out by government policy. Until that meeting. Jen had taken a client with him that particular day. On the other side of the table was the official in charge of currency intervention. Just as soon as the meeting started the man – who Jen leaves unnamed – looked up and pointed his finger at Jen’s client then, with a snarl, uttered the words – “don’t even think of speculating against the baht or we’ll destroy you.” Jen recalls the exact date – 31 March, 1997. It was a coup de foudre. “I knew from that moment that it [the Bank of Thailand] was under more pressure than they were letting on,” he says. “We found out they had a very large position

in forward markets as a way of currency intervention and it was clear to me that they were running out of money. After that meeting, I immediately changed my call and issued a report that very evening. I realised that this wasn’t just about the Thai baht – the crisis would take out currency by currency and country by country.” It was an emotionally charged meeting and a study in human psychology – specifically how not to bluff your opponent. The encounter marked a turning point in Jen’s thinking, both towards the region’s currency markets and in his attitude to economic systems. Digging into the fundamentals, Jen concluded there was high risk of a domino effect in Asian currencies – “the dam was about to break,” he says – and Morgan Stanley backed his call with force. “I was trained as a PhD and worked at the IMF,” says Jen. “Naturally I had a bias for taking the official and often sanguine view on countries. I also had a dim view of speculators compared to long-term investors. But, in my own mind, the event meant that I had to make a transformation and take a different view.” It was a form of speculation that was similar to what George Soros was secretly carrying out at the time and ran contrary to Jen’s previously held views on speculation. But, at the same time, it was one that was based on true fact. The Thai baht was overvalued and artificially pegged to the dollar – this was unsustainable.

I used to have a dim view of speculators compared to long-term investors, but I realised that I had to make a transformation and take a new, different view

Not many shared the view at the time but Morgan Stanley’s faith in Jen’s call paid off and made them a lot of money. It also catapulted him to one of the world’s foremost currency strategists. But it was still only the beginning of his training in the currency markets. When he moved back to London at the end of 1999, to lead the bank’s Group of Ten (G10) currency strategy team, he really started to get to grips with what he calls this “strange” asset. Jen’s route to finance came in a parenthetic way. He had originally chosen to study electrical engineering with a view to pursuing a career as an engineer. But his interest was entirely diverted towards economics while studying under a professor called Tyler Cowen at George Mason University who he credits with getting him hooked on macroeconomics. He went on to MIT where he studied under none other than Ben Bernanke, future chairman of the Federal Reserve, who he calls “a fantastic professor” and a Nobel-prize winner, Paul Krugman. Academia gave him some exposure to the currency business as a concept but it showed nothing of the reality of trading the FX markets. “It is hard to study currencies – I got my specialised knowledge and insights by working in this market,” says Jen. “The theories I had learned in graduate school often don’t fully explain the currency markets. You need the robust fundamentals and macro training but you also need lots of street smartness and humility to know what’s going on and what could happen.” Unlike emerging market currencies where cause and effect is more directly attributable, the G10 currencies, because of their size and the diverse players involved, are different, “fickle,” and sometimes “impossible to understand.” Knowing how to trade FX comes with practise. Craving trading exposure, in 2009 Jen left Morgan Stanley to join Blue Gold – now Andurand Capital – run by an ex-cover star of ▶

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COVER STORY STEPHEN JEN

FUNDAMENTALS

Pierre Andurand. Here he started to pick up the patterns of the markets, learning from someone he calls “one of the best traders” in Andurand, who he compares to Roger Federer, with his use of clean, pure strokes. Andurand’s example taught Jen the value of distance. “You can’t be too close,” he says. “If you are, you miss the trend. If you are too far away you miss it too. Andurand doesn’t trade much. And he is a very clean trader – if he doesn’t like a trade he will take it off.” Jen stayed at Blue Gold for a year-anda-half before setting out to build his own company, SLJ Macro, in 2011 with business partner Fatih Yilmaz, who was also the first person he’d hired at Morgan Stanley – “a talented person with good financial, macro knowledge but also good common sense.” The idea was to build not just a hedge fund but a money management assistance company, giving advice and currency overlay services to large institutional clients including central banks, sovereign wealth funds, pension funds and endowments. Five years in the business has only added to his reputation – Jen says he can count on most of the world’s major central banks as his clients. Then, last year, things jumped to another level. Jen was approached by Eurizon Capital – Italy’s third largest asset manager with some €276bn in assets – and decided to sell 65% of his company. The merger has been going through this year and was finally completed in July – “I thought divorces were supposed to be complicated while marriages should be simple,” Jen quips. It is a move that will allow the company to expand on all fronts with Eurizon providing assets and support to SLJ which continues to maintain operational autonomy. Jen says Eurizon Capital’s chief executive, Tommaso ▶ HEDGE,

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I spent a third of my life in Asia, US and London each. It turned out to be helpful.” The company intends to launch three more funds by the year-end using Eurizon’s Luxembourg platform, on top of the four it already has. Two of these will be focused on Jen’s old favourite, the emerging markets. As regards this, Jen actually believes it is an interesting time for EM watchers. “At the moment there is a divergence between the emerging markets and the west,” he says. “The developed world is doing better than people suggest while the emerging markets are doing worse. But the financial market performance is totally contrary to this. There’s been a tremendous rally in emerging market assets even though the economies are not doing well.” Could this see another potential Asian crisis at some point in the future? “Anything is possible,” he says. “The world is always going round in cycles.” For now, Jen feels that the new company can get 100% growth in the next ten years and join the big leagues. It’s not a forecast that you would bet against. H

PHOTOGRAPHS by David Harrison

The developed world is doing better than people suggest while emerging markets are doing worse, but financial market performance is totally contrary to this

Corcos, is, “among all of the clients I’ve met in my 20-year career, one of the most outstanding people.” Growth is happening. The company currently has a dozen or so people and is in the process of hiring more, although, says Jen, it doesn’t really need to expand too much on that front. “You don’t need lots of people in FX,” he says. “It is an asset class with relatively few crosses to analyse and trade, unlike equities. FX is also very liquid. The business is very scaleable – you just need a few traders to manage large pools of capital, in theory.” The people at SLJ come from a very diverse range of backgrounds, something that Jen has encouraged and which he considers important for working in the currency markets where understanding diversity is prized. It is a far cry from the time Jen first started working at Morgan Stanley when he was one of the only Taiwanese-Chinese in the Square Mile. “It was just the way it was then,” says Jen. “But the world has become very global now. You need to understand that and the cultural differences between countries.


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FUNDAMENTALS

The Blue-Sky Thinker

Jean-Jacques Duhot, Arctic Blue Capital’s CIO and Managing Partner, named his forward-thinking fund after the Canadian sky, but his influences are truly international, finds JESSICA FURSETH

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slightly underperforming our historical average”. But, he adds, this is the case for all strategies and asset classes: “I think that’s the global impact of zero or negative interest rates on the entire structure of returns. We’re not in the same world anymore. That is very clear.” The new world seems to be open to Arctic Blue, though – the current assetsunder-management figure is $150m, up from $65m in the first quarter. The fundraising has gone well, confirms Duhot, but that’s on the back of steady effort. “We have people who’ve been looking at us for two years, who are just investing now.” Duhot says he initially underestimated this prudence, although he expects AUM to reach $250m by the end of the year as the pipeline delivers. Part of the reason it’s taking time is that investors wanted to see if Duhot, and his fellow ex-Millennium Capital Partners cohort, could perform as effectively as a small operation. Then there’s the fact that taking a shot on a new name is more risky than staying with the same old: “I think investors can have herd-type behaviour.” This year is likely to be a pivotal one for systematic investing, asserts Duhot. “I think people are ready. People have had conversations with friends in Europe, North America and Asia, and are really starting to think that this time it’s not cyclical, it’s structural. Algorithm or systematic trading is taking over.” This realisation comes on the back of low

Traditional economics don’t work anymore. We know this as we’ve never seen such a high level of economic intervention by central banks and governments before

interest rates, says Duhot, coupled with more indirect influences: “In the US, Uber is putting cars with no drivers on the road. It’s [in the same vein as] robot vacuum cleaners. Well, what about funds run purely with computers?” Duhot believes the machines will take over: “The traditional economics don’t work anymore. We know this from the fact that we’ve never seen such a high level of economic intervention by central banks and governments.” Arctic Blue marks the beginning of a new path for Duhot, one he is clearly enthusiastic about as it adds the “entrepreneurial dimension” he felt was lacking after 25 years in the markets. “I discovered myself as something of a salesman. I was ignoring this [before], viewing my screens and doing my thing.” Now, Duhot’s job involves creating a product, selling the story, and having more involved relationships. “I love having five, ten, 15 meetings with one investor, because we know that at 20, he will be on board. He did his due diligence.” Duhot grew up in the Champagne region of France, moving to Paris at 17 to study law and international relations. “When I was a kid I wanted to be a jet fighter pilot, but then I got glasses so it was game over.” He laughs. A summer internship at the Paris stock exchange was a formative experience: “I decided that’s what I would like to do, because it brings the economics, the international relationships, the macro picture, but also some excitement.” Duhot spent his first 14 years in the industry at Société Générale, during which time he was given the offer to attended the Kellogg School of Management. He was 33 when he went back to the books: “I thought wow, it could only broaden my spectrum. It was a great opportunity. I was trying to better understand the linkage between markets. I’ve never been interested in the little details of rates, value, arbitrage, this little ▶

PHOTOGRAPHS by David Harrison

AN INUKSUK IS a human shape built from stone, used by Canadian native peoples to aid navigation across the tundra. The Inuksuk is also the symbol of Arctic Blue Capital, whose name has a Canadian inspiration, says Jean-Jacques Duhot, a Frenchman in London. The inspiration came after a friend took him to Nunavut, at the very northern edge of Canada. “We got there and the sky was super crisp blue. The temperature was -47°C. On the plane, I started writing about it. That’s why I decided to call the company Arctic Blue, in memory of that incredible blue.” London is the opposite of crisp on the day of our meeting, sporting that particular mix of hot and muggy that’s typical at the end of a British summer. But the Chief Investment Officer and Managing Partner doesn’t seem bothered by the sweaty weather, looking very much the part in a charcoal suit and classic white shirt. His cheerful demeanour is complemented by simple specs and a quiff of grey hair, and the financier comes across as a man who’s not only passionate about his work, but also interested in the world and other people. We’re sitting in the Mayfair offices shared between systematic macro hedge fund Arctic Blue and Stable Asset Management, the parent who seeded the firm in June 2014. It’s a good deal for Duhot: the housekeeping is taken care of, including regulatory compliance, broker relations, marketing, roadshows, and so on. That means Duhot and his team can get on with the business of ‘printing numbers’. The approach is purely systematic, explains Duhot, his perfect English underscored by a clean French accent. I ask the CIO to provide some more details – the company website is literally a single page that says ‘email us’. Arctic Blue takes a mid-to long-term horizon on investments and the company’s commodities-focused systematic approach has outperformed its peers, says Duhot, “doing well, but


INTERVIEW JEAN-JACQUES DUHOT

PHOTOGRAPHS by David Harrison

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INTERVIEW JEAN-JACQUES DUHOT

FUNDAMENTALS

▶ thing

versus that little thing. For me it’s more about the big picture and trying to understand the complexity.” Duhot’s view started to truly extend beyond France while he worked in Hong Kong. “When you are at Société Générale in Paris, you think you’re king of the world. Then you go to Hong Kong and you [realise] France is quite small, and the Franc is a very small currency. Maybe you should look at other things!” Duhot started to trade on American and Japanese markets, but it was difficult to keep track of the 24-hour activity. “I started to try and code some of my trading rules. I had no programming expertise, so I started to learn.” Duhot was working in London by this time, overseeing 17 traders. “I was interested in them as individuals. How are they taking risks? Are they patient? Rigorous or laid back? Are they looking at

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the big picture or are they specialised on some little discrepancy? I looked at some guys who were very good, and some who weren’t. I thought, in the perfect world they would be replaced with machines. That would be the most efficient world.” Duhot stopped short of telling his staff about his scheming to get rid of them, but he did become convinced of one thing:

I looked at some of the traders I worked with. Some who were good, and some who weren’t. I thought, in the perfect world, they’d be replaced with machines

human nature gets in the way of optimal trading, and a machine would be far more rational. Yes, he includes himself in this, he assures me. “I thought, I need to reinvent myself toward maybe the only asset classes that will [always] respond to supply and demand: energy, agricultural, and so on. How about applying my rules to that?” The algorithm experiment started in Canada, where Duhot worked at Caisse de depot et placement du Quebec and Canadian Imperial Bank of Commerce, but it’s the same strain that carries through to Arctic Blue today. Duhot is quick to point out he wouldn’t have been able to develop this system without help; Philippe Bareges, his Head of Quantitative Analysis and colleague of eight years, has been instrumental. But Arctic Blue is very much a culmination of Duhot’s personal experience, I suggest – he’s basically selling investors on his own history. “Yes, absolutely. That’s my journey, that’s where I’ve ended up. That’s the recipe. That’s the sauce.” Duhot is happily ensconced in London now. He likes it for being “super international” – part of this stems from the fact that the Frenchman decided to move away from the “froggy valley” of Kensington. He lives in Brixton: “It has good vibes. I like it very much.” He’s equally enthusiastic about the international food scene in London: Sri Lankan and Vietnamese are recent favourites – not French food, though, as his mother cooks better. Duhot also enjoys Brixton eateries like Franco Manca – sometimes he’ll just stay in Brixton Village for the weekend. Duhot talks about London like a Londoner, I suggest: he’s found his favourite spots away from Zone One. Duhot nods – he prefers Battersea Park to Hyde Park. London lets you enjoy some greenery without having to drive for hours, he adds – you can’t do that in Manhattan. The only thing about London that may not be ideal is how his name, Jean-Jacques, is a mouthful for the Anglo-Saxon speaker. “All the Asians and Americans say JJ,” says Duhot, telling me how once, in Japan, he got a fax addressed to Mr Jean Jacket. His kids are still dining out on that, he laughs. “But the jean jacket story told me: we’re going to go with JJ.” H For more information, see arcticbluecapital.com


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FUNDAMENTALS

Get into the Spirit

Turn the hard stuff into hard profit. COLIN HAMPDEN-WHITE, editor of luxury magazine Whisky Quarterly, explains how to make money out of whisky

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TREASURE ASSETS WHISKY

Bottling it There are two ways to invest in bottles: buy a limited-edition bottle from a decent brand, and hope it becomes successful and shoots up in value, or buy a tried-and-tested bottle that you know is already successful, and hope it will continue to rise in value. The latter is a safer investment but returns will be smaller. If you have the knowledge, try and buy limited edition, newly released bottles as these could eventually turn a tidy profit. With big online retailers, such as The Whisky Exchange, supplying bottles from all over the world, you have a lot of different options to play with.  If buying casks... Casks are the safest investment in whisky. Buy brand-new casks. In three years it becomes whisky, and somewhere between three and five years you’ll get your first, best return on that cask. Aged casks will be more expensive. However, since whisky matures in the cask, unlike the bottle, the price will increase exponentially the longer you keep it. Ideally, buy some new casks, and some old casks too. If you have limited resources then just buy new casks, because they’re cheaper and you can buy more. Either sell after five years or keep for at least 12. A good place to invest in casks is website The Whisky Market. This business specifically helps clients hold, trade and bottle whisky by the cask. Bottles vs casks Buying bottles always involves a certain amount of risk. With a large investment, it’s very hard to find the quantity of bottles that will rise in value. Say you had £20k. You’ve now got to find bottles that aren’t already ridiculously expensive; spread bet over a lot; and then hope enough come good to make PHOTOGRAPH by Leon Harris (Getty Images)

Buying bottles involves a certain amount of risk. If you want low risk and reasonable returns, buy casks, as you won’t lose money on them at present

some big money. That’s a very difficult process. If you want low risk and reasonable returns, then you should buy casks. You won’t lose money on casks at the moment. The world is drinking more whisky. If you buy a cask, the whisky industry will have a use for it. All casks have value, and that value is going up. People are making 11% each year on casks, up to 23% if they bought the casks a few years ago. The only drawback is time: as mentioned, the optimum time to sell is normally five years. But you’ll make 11% per year on that.

New label? Buy in cask If you want a cask that might rise in value a little quicker, look for whiskies that have recently come on the market and aren’t known by the wider public. For example, the whiskies from Bacardi – Craigellachie, Aultmore, Glen Deveron, Aberfeldy, Royal Brackla – haven’t been around very long. These labels are brand new, they’re being marketed heavily, and you’ll see them in all the travel retail stores. They’re becoming very popular as single malts, but as casks the price hasn’t yet massively gone up. So if you buy any of them as casks, they’re bound to be worth more in the future because people will then know the name. Check for closed distilleries In recent years the Japanese whisky Karuizawa has been magic. The distillery closed in 2000, and a lot of the stock came to the UK. The first batch that went on the market sold for £120, and the last sold for £325. If you had bought one of the last Karuizawa bottles and walked out of the door, it would have immediately been worth £1,500. Owing to the finite number of the bottles, and its high strength, Karuizawa has now attained cult status. A bottle at auction today would cost a minimum of £2,000. If the distillery closes, the remaining bottles can subsequently rocket in value. However, quite often distilleries close because their whisky isn’t very good, so watch out for external factors like an over-saturated market or unexpected bad luck. Rare labels offer real profit The biggest rival to Karuizawa in terms of spike in value is another Japanese label, Hanyu. Again the distillery closed, and a ▶

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TREASURE ASSETS WHISKY

FUNDAMENTALS

▶ lot

of stock ended up in Britain. Hanyu did a series called The Card Series, a release of every single card in a deck. The last release was The Joker. Sold at £225 in October 2014, by the end of the year Joker bottles were fetching £900. The labels were mostly multicoloured, but Hanyu released a very small amount of bottles with monochrome labels, which now fetch about £7,000. Very limited-edition labels can quite often be worth a small fortune.

Frequent auction houses Auction houses are great places to find rare labels. Try Whisky Auctioneer, Whisky Auction, Scotch Whisky Auctions, and Bonhams in Edinburgh for a start. Mostly the whiskies will sell for around market value, although you might snag a few good deals in August as everyone’s on holiday. However you won’t have to pay retail, which is a major bonus. Then you can just sit on your purchase and over time it will hopefully rise in value.

You need to be really, really quick to benefit from the spike in value that often comes to a bottle that has just won an award. We’re talking literally minutes 44

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Good whisky, bad investment Always make sure the box and label are in good condition. Don’t buy non-age statement whisky for an investment, that’s a big no-no. So, for example, avoid Talisker Dark Storm – anything without an agestatement on the bottle. The quality may be superb but the re-sell value is generally low. Only ever buy if it’s a very limited run. Don’t buy stuff that’s mass-marketed – the value will rise but it will take a long time. In the 1990s, Talisker released a very nice bottle with a map on the label, Talisker tenyear old. You could buy those bottles for about £30, now they’re worth around £90 at auction – but it’s taken two decades. Storing whisky If you’re going to keep whisky for a reasonable amount of time, a wine cellar

▲ NO GRAIN, NO GAIN: [clockwise from top] A bottle of Macallan 62-year old with Lalique decanter; Sullivans Cove, Australia’s award-winning single malt; investing in casks is a good bet

is the ideal storage. No wine cellar? No worries. Whisky is much less delicate than wine. Make sure the space is not so hot that the whisky will evaporate over the years through the cork, and make sure it’s dark. Light will affect the whisky. So dark room, not too hot, not to damp. A cupboard under the stairs should be fine, provided the temperature doesn’t rise above 25 degrees. Of course if you’ve bought casks the supplier will normally arrange storage – many people turn a profit on cask whisky without ever seeing their product. Specialist businesses such as The Whisky Market can hold and trade casks for you. H

PHOTOGRAPHS by (Macallan) Gary Doak/ Alamy; (Sullivans) Mark Kolbe/Getty; (casks) tbkmedia.de/Alamy

Study the big awards You need to be really, really quick to benefit from the spike in value that often comes to a bottle that has just won an award. We’re talking minutes. Ideally, you would attend the award ceremony armed with a laptop, and buy the winners in bulk as soon as they are announced. The two big competitions are the International Wine & Spirits Competition and the World Whisky Awards. Both are held in London. The San Francisco World Spirits Competition is also highly respected. It isn’t a bad idea to spread your bets by snapping up a selection of the nominees. Even the non-winning bottles are still quality whisky, and will be likely to rise in value. The winning bottles should land you a big windfall.


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FUNDAMENTALS

Keep Calm and Carry On As co-lead of Aon McLagan Investment Services and co-founder of Asset International, Dominic Hobson is well set to shine a light on the Brexit gloom, as Linear Talk’s COLIN LLOYD discovers

COLIN LLOYD: Most

of the commentary that we’ve seen since Brexit has been on the passporting impact on the hedge fund industry. How serious a problem is that?

DOMINIC HOBSON:

Many managers greeted the publication of the first version of the AIFMD back in April 2009 with complete horror because it was full of things they didn’t like the sound of – above all, that it appeared to be putting restrictions on their ability to sell nonEU hedge funds to EU investors. So it is somewhat ironic that people are now concerned about regulatory uncertainty. We need to remember that people who have learned to live with the AIFMD can learn to live without it. But, as it happens, I don’t think they’ll have that pleasure because I think the AIFMD is going to survive the negotiations of Brexit and going to survive Brexit itself for some years. In general, I think that Brexit is going to have very little immediate impact on the hedge fund industry at all.

CL: What

makes you so sure?

DH: Well, if

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CL: For a manager to qualify, what will they need to do in order for them to obtain that third-country passport? DH: They

have to apply to a regulator in an EU member state for authorisation – and that’s a pretty straightforward process. They would probably go to the Central Bank of Ireland in Ireland or they’d go to the CSSF in Luxembourg and get authorisation to distribute their products under a thirdcountry passport regime. It does mean, of course, that you’d have another regulator involved. You’d be regulated by the FCA in London and then you’d also be regulated by the CBI or the CSSF in a third jurisdiction. But it shouldn’t be terribly onerous.

CL: So it doesn’t really sound as though Brexit is going to be an unmitigated disaster

I think the AIFMD will survive the negotiations of Brexit. In general, I think Brexit will have very little immediate impact on the hedge fund industry at all

provided the funds are regulated under AIFMD, but what about those funds that are offering UCITS products? What would the impact be on them? DH: Well, in

theory, UCITS managers do have a problem because under the UCITS regime, there is no third-country passport option as there is under AIFMD. So they are going to lose that passport. The way things are at the moment, the only reason that a London-based UCITS manager can distribute its funds to European investors is because it’s an EU manager in an EU country domiciled in an EU jurisdiction selling to EU investors. And there is no provision inside UCITS for a third-country passport.

CL: What

can UCITS managers can do?

DH:

Put it this way, almost all major UCITS managers have operations somewhere inside the European Union. It’s a problem, potentially, for smaller managers who might have to start adding substance to operations or even set up an operation for the first time somewhere like Luxembourg – and have a real team set up there, including risk management, fund accountants and a few salesmen. The conditions as to what constitutes ‘substance’ change all the time and they vary by jurisdiction, but really, once you have set up a management company inside the EU, you will be able to sell your UCITS throughout the EU. And bear in mind, that’s really how the UCITS business operates already. Both Dublin and Luxembourg have frankly built their entire fund processing and fund servicing industries on the back of delegation. The fund management is still delegated back to London, but you’ll have to have a management company with some substance somewhere inside the EU. ▶

PHOTOGRAPHS by David Harrison

you’re a hedge fund manager who is based in London, running a Cayman fund and selling it to EU investors, you’re not using passports at all anyway – and you’re not going to miss something which you had never used before. You’re selling your funds to European investors under article 36 of the AIFMD using the national private placement regimes. And it’s article 36 because the UK is inside the EU. Once the UK is outside of the EU, then you’ll simply switch from doing that to carry on doing it under article 42. Just as many US managers are. Secondly, if you’re a UK manager who is running EU hedge funds domiciled in say, Luxembourg or Ireland, you will lose the passport. But by the time the UK actually

exits the EU – probably sometime in 2019, at the very earliest – that probably won’t matter either. The European Securities and Markets Authority is conducting a survey of various third-party jurisdictions to determine whether they are adequately regulated – and it would be very strange indeed if the UK didn’t qualify for what’s called a ‘third-country passport’. After all, if I’m right, and the AIFMD remains in place, the UK will by definition be fully compliant with EU rules.


BREXIT DOMINIC HOBSON

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BREXIT DOMINIC HOBSON

FUNDAMENTALS

being in the EU is we can get rid of lots of its rules’. Whereas, in fact, staying within those rules is still probably the best option. But I think the big opportunity here is for UK fund managers to sell products to the rest of the world. There is the potential for a sort of dual regulatory regime: a very heavy one which, if you want to sell your product to European investors, opt into an AIFMD-like regulatory regime. But if you’re a manager who wants to have nothing to do with European investors but wants to sell to other regions, you could opt for a lighter-touch regime. So we could have a heavy-handed regime for distribution to EU investors and then a very light-touch regime for distribution to Latin-Americans, Asia, North Americans and so on. CL: Would you encourage managers to be optimistic about the outcome of Brexit? DH:

▶ CL: What is the situation for the managers who are offering segregated mandates or managed accounts?

DH:

Most hedge fund managers running single portfolios for large European institutional investors – pension funds and the like – will be operating those through a managed account. Now managed accounts are not regulated under UCITS or AIFMD; they are regulated by MiFID. The UK has MiFID I in place already. It’s now in the process of implementing MiFID II. MiFID II should be in place from January 2018. So again, when the UK exits the EU, it

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will have the MiFID regulation. The good news about MiFID – unlike AIFMD, for example – is it has an equivalence in it: if the European Commission determines that a country has an equivalent regulatory regime to that which applies inside the EU, products emanating from that jurisdiction can be sold to European investors. CL: So again, it seems likely that this will not be a problem. Is there an upside for the hedge fund industry as a result of Brexit? DH:

From a superficial perspective, you might think ‘the great thing about not

London managers need to bear in mind what they’re good at: managing money. There is plenty of reason to be optimistic about Brexit provided the fund management community in London continues to attract global talent. While managers should make clear to the British government that they regard passporting as an important negotiating point and that they should continue to have access to EU investors, I think even more important is the UK remaining open to all the fund management talent of the world. The immigration of talented managers is arguably much more important to the UK fund management industry than anything else. And do bear in mind, there are certain things we won’t miss about the EU: among them, remuneration controls. We won’t miss the financial transactions tax. Also, I suspect that the current AIFMD is just the first iteration of many AIFMDs – and we may well find AIFMD II is not something we like, but by then we will have bought ourselves many years of time and have got our fund management industry into a much stronger position, facing outwards to the world – and doing a lot of good business outside the EU. H

To watch the full interview, and see more interviews with some of the industry’s most insightful characters, see Linear Talk on linearinvestment.com


T RAV E L

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Whether it’s for business or pleasure, country hopping can be a pain – and the last thing you need is to be reminded of jet lag when you’re setting your watch. Patek Philippe’s latest time traveller seamlessly combines a flyback chronograph and a world-timer to bring joy and efficiency to this task. Armed with an upgraded version of Patek’s self-winding CH 28-520 HU calibre, it is the thinnest worldtimer chronograph on the planet; the handsome dial’s three distinct tiers, along with its impeccable guilloché handiwork, are what make it out of this world. H £48,840; for more info, see patek.com

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UK GOODWOOD

TRAVEL

In the Dog House The superlative service at Goodwood’s Hound Lodge makes it a real competitor to the title of man’s best friend, says MARK HEDLEY

PHOTOGRAPH by Mark Hedley

WHEN WOULD YOU like the butler to serve your dogs their dinner?” Well, this comes pretty high on the list of questions I never thought I’d be asked. It was rapidly followed by another: “And would they care for doggy ice cream for afters?” Er… You see, if you book a stay at Hound Lodge – an exclusive-use ten-bedroom house on Lord March’s exemplary Goodwood Estate – even your dogs are treated like aristocracy. The questions were being asked by Alice, the lodge’s exceptionally conscientious party planner, a few days ahead of our weekend stay. As part of the experience, Alice ensures that every last possible detail has been considered before you even step foot on the grounds, part of the 12,000-acre estate. This includes planning your meals – for humans, as well as canines – which

will be cooked by your private chef. It’s a collaborative process where you begin with a few of your favourites, and the chef finishes by turning them into culinary delights. It’s like Ready, Steady, Cook, but with more refinement and less Ainsley Harriott. Dinner is not all you have to look forward to, though; there’s afternoon tea to kick off your stay. On arrival at the lodge, you’ll be met by the chief butler and a team of two deputies. Your bags are labelled and whisked away to your respective rooms (Alice had already asked me to decide which guests were staying in what rooms) before you are ushered into the drawing room for cake and tea – or something a little stronger, if you wish. It’s difficult to get your head around butler service. We’re not talking about an octogenarian who occasionally buffs your shoes, but a team of highly trained servants,

all suited in morning dress, there to look after pretty much anything you can think of – and quite a lot besides. There is a service button in every guest room, which you can ring at any time, day or night, and a butler will arrive to take your request. Need a shirt ironed for dinner? Not a problem. Can’t be bothered to take your dog for a walk first thing in the morning? Don’t worry about it, sir. Want your bath run for you? Consider it done. I suspect they might draw the line at actually handing you your towel. But I wouldn’t bet against it.

Ain’t nothing but a hound lodge Goodwood was the home of the world’s first major foxhunt – the Charlton Hunt. Foxhunting was the most fashionable pursuit of the 18th century, and the Charlton would regularly attract more than 50 Lords. The Duke of Richmond bought ▶

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UK GOODWOOD

TRAVEL

nearby Goodwood as a comfortable place to stay and entertain his illustrious friends during the hunting season. The Duke arguably enjoyed the company of dogs more than humans – indeed, the kennels and later Hound Lodge had central heating a full century before the manor house itself. After the hunt was disbanded in 1895, it still took until the early part of the 20th century for Hound Lodge to begin its transition. The latest renovation and build took two years in total and was completed in January 2016. Although its previous residents are long gone, canine inspiration can be found throughout the home – from the artwork on the walls to the Wedgwood breakfast crockery which features a colourful hunting scene of an endless chase. Even the bedrooms are named after the ten hounds of the ‘Glorious Twenty-Three’ of 1738 – a hunt the 2nd Duke of Richmond described as “the greatest chase that ever was”. Lasting more than ten hours, and 57 miles, it was certainly one of the longest. Decorated in period style, the rooms have some of the most comfortable beds you’ll ever have the pleasure of sleeping on. Their plump mattresses are filled with wool from the flock that graze on the estate. While you’re enjoying an after-dinner digestif in the lounge, the butlers even place hot water bottles inside your bed to heat them up before you turn in. Now that’s what I call a warm welcome.

It’s a dog’s life During the day, you’ll have all of the estate’s considerable and diverse charms to explore. There are two 18-hole golf courses, including the Downs Course – an 18 holer which has been ranked 59th in Golf World’s Top 100 English Courses – designed by

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deliver silver service. Dishes are presented with the elegance of a ballerina combined with the efficiency of a soldier. The food is excellent, and would certainly hold its own in a London five-star hotel. The chef follows the seasons, and the produce comes direct from Goodwood’s farm – the largest lowland organic farm in the whole of Europe. The experience as a whole is an indulgence into a bygone era, and dinner is rounded off with cheese and port – for the latter, the host serves himself first and then passes it to the left. This is old school. Retiring to the lounge after dinner, there are enough cigars on display to stock James J Fox – and a trolley full of single malts to accompany them, not to mention the complimentary carafe of 15-year-old Glenfiddich left in each bedroom. The only downside to Hound Lodge is how quickly you become used to it all. Returning home to a London flat after your stay here is like being downgraded from first class to cattle. I mean, I have to pour my own drink at home. Whatever is the world coming to? H One night at Hound Lodge costs £10,000, but fill it to capacity and that’s £500 a head. (This doesn’t include alcohol.) Hound Lodge, Goodwood Estate, W Sussex, PO18 OPP; 01243 755 076; houndlodge.com

PHOTOGRAPH by Mike Caldwell

At the end of a long day, there’s nothing quite like hearing the phrase ‘dinner is served’ – especially by an actual servant as part of the Downton experience

Gleneagles course architect James Braid. There’s even a PGA coaching team on hand if you get stuck in the rough. For something equally high calibre, you could try clay pigeon shooting at the estate’s range – or opt for a treatment at the spa. For a bird’s-eye view of Goodwood, you can head to the aerodrome to fly a Cessna, a helicopter or even a warbird. With the latter, you’ll take control of a 550bhp 1943 Harvard Warbird and experience what it would’ve been like to be an RAF trainee during the second world war. If you’re after something a little more 21st century, then throw down a few laps on the Goodwood Motor Circuit. The Ultimate Driving experience here starts off in a Mini, working up through increasingly serious BMWs, before finishing with a Rolls-Royce Wraith – certainly a fitting car for the surroundings. Of course, you may choose to eschew such fripperies, and instead play a game of croquet back on the lodge’s manicured courtyard. At the end of a long day, there’s nothing quite like hearing the phrase ‘dinner is served’ – especially by an actual servant. And my word, is it served in style. The butlers take the whole Downton Abbey experience to the next level as they don white gloves and


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Around the World in Eight Days Who needs 80 days to see the planet? You’ve got a private jet and t-minus eight days. Move over Phileas Fogg (and Michael Palin…)

When Far East Movement sung “I’m feeling so fly like a G6” this was the jet they were talking about: the Gulfstream G600. The ultralong-range aircraft is ideally suited for a trip like this – with a max range of 11,482km. That would get you from London to Tokyo with plenty of fuel still left in the tank. It also boasts best-in-class comfort and fuel efficiency. For more info, see gulfstream.com

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PHOTOGRAPHS (Gulfstream) Paul Bowen ; (Heathrow VIP) by Michael Hervey, David Hares

GULFSTREAM G600


JET SET AROUND THE WORLD

Day One: Heathrow VIP, London For most people, a round-the-world trip is not exactly a regular occurrence – indeed, this is proper once-in-a-lifetime bucket-list material. So, you need to make sure you kick off your journey on the right foot. Step one is simple: book yourself in with Heathrow VIP – the most luxurious way to travel through an airport. Indeed, with the Black Service, the experience begins before you even arrive, courtesy of a chauffeurdriven BMW 7-series. On arrival, your top-hatted concierge will welcome you – and whisk away up to ten items of hold luggage per person to be processed and put on board the plane. There’s a Personal Shopper service to help you buy anything you want, without having to step from the lounge; a specialist from the Travelex team can even come to arrange and assist your VAT refund. The food and drink selection is a (very significant) step above what you may be used to from commercial first-class lounges. The menu has been designed by Michelinstarred superchef Jason Atherton – and is created by the on-site chef while you wait. This all-day service covers a selection of elegant main courses, lighter snacks and a decadent afternoon tea – even served if it’s first thing in the morning. If there’s a particular wine or bottle of champagne you like, that’s not a problem, either, as they can deliver on any special requests or requirements you may have. Naturally, privacy is an absolute, so your journey through the airport is totally secure – and the start of your trip is as hassle free as it is enjoyable. Onwards and upwards…

◀ A FRESH START: Heathrow VIP offers the most luxurious way to start a trip. In fact, it’s so nice, you might not want to leave.

Prices for the Black service start at £2,750+VAT for up to three persons for an arriving or departing flight. For larger groups, please contact the Booking Team to discuss. For more info: heathrowvip.com ▶

The menu has been designed by Michelinstarred chef Jason Atherton. You can opt for a decadent afternoon tea even if it’s first thing in the morning 59

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JET SET AROUND THE WORLD

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▶ Day

Two: Rome Cavalieri, Rome Sure, Europe may be on our proverbial doorstep, but a global trip wouldn’t be complete without stopping off in at least one of the great romantic capitals of the old world. For a genuine experience of Rome, you’ll need to ditch the jet and hop into a vintage Fiat 500 negotiating tourists, mopeds and crazy Italian drivers while also having an argument with your partner. If that sounds like something you want to pay for, contact Alvise, a charming Italian who will lead a tour of his city – the Colosseum, Spanish Steps, Piazza Navona – while you follow in a restored Fiat. (If a Ferrari is more your style, upgrades can be arranged.) If you’re really, really into the Colosseum and its former residents, you may like the sound of the Rome Cavalieri hotel’s gladiator training programme, where you learn how to fight with a ‘gladius’ (the typical gladiator sword) and the trident, a three-pronged spear, in the lush gardens of this luxury hotel. You need to look the part to feel the part, so while you’re swishing your weaponry around in the air, you’ll be kitted out in a traditional tunic, Roman sandals, belt, leather gloves and helmet. Yoga is so last year… For more info: romecavalieri.com

Day Three: Ol Lentille, Kenya Located in the foothills of Ol Lentille (‘Sacred Mountain’ in Swahili), The Sanctuary is exactly that: a sanctuary for its guests, providing a world-class escape; a sanctuary for the local community providing jobs, supporting schools and improving healthcare; and a sanctuary for the environment, with a private conservancy area of 15,000 acres (and counting) ensuring that the wild is preserved in all its untamed glory. The lodge comprises four luxury houses – ‘complexes’ is probably more accurate – with space for two-to-six guests. Each of these is fully staffed with your own butler, valet, guide and askari (a night guard who stops you from being dribbled on by leopards, et al). Yes, that’s four members of staff dedicated to you. With some of the most untouched wilderness you’ll ever see on your doorstep, this is where African adventures are made.

Day Four: Baros, Maldives You need at least one desert island paradise on your itinerary. They don’t come more idyllic than Baros Maldives, a small private island in the North Male atoll. Naturally, it boasts secluded, palm-thatched villas overlooking a glistening blue lagoon – some of them are on the water, with private sundecks and steps leading straight into the lagoon, while others are set in flower glades and tropical vegetation by the beach. An on-site Padi diving school, a spa and several restaurants complete the package.

Day Five: Green Leaf Hotel, Japan Dry, light powder, 48km of pistes, onsens (essentially soothing pools of hot water) and plenty of sake, the Niseko resort in Japan is one of the most famous ski and snowboard destinations in the country for good reason. Travel between December and March and you’ll be treated to some absolutely incredible slopes, the biggest average snowfall in Japan and the opportunity for excellent backcountry jaunts. Then there’s the food – a warming nabe hotpot chockfull of noodles, veg and meat.

For more info: ol-lentille.com

For more info: slh.com/hotels/baros-maldives-hotel

For more info: thegreenleafhotel.com ▶

▲ MOUNTAINS OF FUN: [Clockwise from top] Mount Kenya as seen from Ol Lentille; Baros Maldives delivers the perfect desert island experience; onsens at the Green Leaf Hotel

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JET SET AROUND THE WORLD

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▶ Day

Six: Halcyon House, Australia When you’re on the other side of the world, it would be rude not to visit our laid-back cousins Down Under. Get into the bohemian spirit of things with a visit to Cabarita Beach in New South Wales. This being Australia, it’s a surfer’s paradise so grab your board and make waves – or try to, at least. When you’ve had enough of falling off, wash away the salt water in your suite at Halcyon House. Designed by Anna Spiro, each room has its own personality and charm. The real kicker, though, is waking up the next day to the sound of the ocean, and complimentary breakfast being served on your private balcony. Cowabunga. For more info: slh.com/hotels/halcyon-house

Day Seven: Los Cauquenes, Argentina After all that lazy beach behaviour, it’s time you got active and saw some of the world. It’s off the plane and into the boat for this pit stop, with just the eclectic wildlife keeping you company. You’re in the Beagle Channel on the southernmost tip of Argentina, where sea lions and Magellanic penguins call home – and your bed for the evening is Los Cauquenes resort and spa. Serenity is the order of the day: whether you find that out on the water, trekking the nearby ancient coastal paths, or just staring at the snow-covered Andes from the spa’s jacuzzi is up to you. Whatever your choice, finish off with an authentic Patagonian meal in the hotel’s fine-dining restaurant to maximise your Argentinian escape.

Day Eight: The Quin, New York It’s almost home time, which means reacclimatising to city life is the priority. Where better to make the adjustment than ‘the city that never sleeps’? By now, jet lag will keep shut-eye to the back of your mind anyway, so it’s best to make the most of it. Enter the Quin: perfectly situated a block away from Central Park and 5th Avenue, you’re right in the middle of the action. But forgo the trappings of the regular tourist and focus on New York’s incredible art scene. It’s in the walls at the Quin. This hallowed building was once the domain of famed artists and musicians. Drink in the creativity and culture for a fitting finale. For more info: slh.com/hotels/the-quin H

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PHOTOGRAPH (Halcyon) by Michael Nicholson; (Los Cauquenes) Celine Frers

For info: slh.com/hotels/los-cauquenes-resort-and-spa

▲ SURF’S UP: [Clockwise from top] Life’s a beach lifestyle at Halcyon House; see Argentina in a new light at Los Cauquenes; former artists’ residence the Quin, New York.


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TRAVEL

The Best Rooms in Town It may be dubbed ‘the city that never sleeps’, but let’s face it – if you’re visiting NYC, you’re going to need a nap at some point. NATACHA TONISSOO presents the finest places to stay in the Big Apple THE MARK

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gallery curators. Most recently though, all eyes have been on its penthouse – it’s the largest suite in the whole of the US (and costs a staggering $75,000 per night). The 12,000sq ft Mark Penthouse was designed to feel more like a luxury private residence than a suite. It has five stylishly designed bedrooms across two floors, fireplaces, powder rooms, a grand piano, a library room and the main dining room can be transformed into a ballroom. To top it all off, a spectacular grand staircase leads to a conservatory and a rooftop terrace overlooking Central Park. 25 E 77th Street, NY 10075; themarkhotel.com

THE BEEKMAN

The most anticipated hotel opening of 2016 in NYC, The Beekman, a Thompson hotel, opened its doors at the end of August – and is already making its mark downtown. Just steps away from the Brooklyn Bridge, in Lower Manhattan’s most historic cobbled streets, The Beekman has brought to life a former office building – the iconic 1883 Temple Court, one of the city’s architectural landmark treasures with its red-stone facade and Victorian turrets. If the outside is impressive, inside is a work of art. From the moment you step in, you’re transported back in time

PHOTOGRAPH (The Mark) by Francesco Tonelli

On a leafy street on the ultra-posh Upper East Side, The Mark is one of NYC’s most glamorous art deco hotels with a healthy splash of contemporary European flair. Originally built in 1927, the landmark building was completely reimagined and given a new lease of life in 2009 by French designer Jacques Grange – think bold colours and geometric patterns, monochrome marble floors and avantgarde furnishings. It’s also home to The Mark Restaurant by Jean-Georges where you’ll find a happening scene among the uptown elite and the neighbouring art


NEW YORK HOTEL GUIDE

With its marble floors and wood-panelled walls, no attention to detail has been spared in the meticulous restoration and design of The Beekman hotel

that looks like it’s straight out of a fairytale. Another reason to stay here, though, is to support the hotel’s mindful approach. Championing conscious hospitality, 11 Howard gives a percentage of its room revenue to the Global Poverty Project, an organisation that aims to eliminate extreme poverty by 2030. It’s also located close to many of the city’s best coffee shops, independent boutiques and galleries. 11 Howard Street, NY 10013; 11howard.com

to the old-world splendour of New York’s ‘gilded age’. No attention to detail has been spared in the meticulous restoration and design of the property, where historical artifacts and local artwork have been used to create a theatrical experience around every nook and cranny of the building. The entrance has glamorous tiled floors made from Carrara marble, the front desk is upholstered with a rich oriental tapestry, and the walls are made of original carvedwood panels. The vintage furnishings are eclectic, with 1940s tasseled lampshades, antique furniture and quirky bookshelves making it feel like a grand private manor that’s more Berkshire than Brooklyn. The pièce de résistance is the central courtyard, which is surrounded with intricate cast iron railings and a striking stained-glass atrium. The hotel is also home to two of the city’s most exciting new restaurant openings: Fowler & Wells by Tom Colicchio and Augustine by Keith McNally.

– Jams – composts all of its food waste, while in the guestrooms you’ll find that the beds have eco-friendly hemp-blend filled mattresses by Keetsa, clothes hangers are made out of compressed paper, and the tap water is triple-filtered to avoid having bottled water. What’s more, guests have access to a Tesla electric car for complimentary rides within a 15-block radius of the hotel. This newcomer to the city certainly walks the talk. 1414 6th Avenue, NY 10019; 1hotels.com

1 HOTEL CENTRAL PARK

This quirky new hotel just a block away from Central Park grabs your attention even before you step inside. Its exterior walls are covered in ivy – a verdant theme continued inside by a mystical secret garden. Having opened just over a year ago as the second property of the new 1 Hotels hospitality brand (the first to open was in Miami), its objective is to bring nature in; dozens of potted plants, hanging plants and terrariums are on display in the lobby, as well as beautiful driftwood artwork lining the walls. Championing sustainability in hospitality, the 1 Hotels brand also ensures that it’s not just its interior design that’s green but that everything else follows suit. The floors and walls are made with solely repurposed wood – some of which was recovered from hurricane Sandy. In addition, the farm-to-table style restaurant

THE CHATWAL

Just moments away from the bright lights of Broadway, The Chatwal has a rich affiliation with the theatre world. It was built in 1905 by acclaimed American architect Stanford White, to be home to the prestigious Lambs Club – the USA’s first professional theatrical club. At the turn of the 20th century, New York’s thespian society would come here to rub shoulders with fellow actors and critics. A century later, master architect Thierry Despont restored the landmark building to be relaunched as The Chatwal Hotel in 2010 retaining its theatrical glamour with an iconic New York art deco style. The hotel continues to be the best place to stay for theatre-goers thanks to the concierge’s ability to snap up the hottest tickets on Broadway. Also, The Lambs Club ▶

5 Beekman Street, NY 10038; thebeekman.com 11 HOWARD

Occupying a former post office in the design mecca of Soho, the recently opened 11 Howard bridges minimalistic Danish design with NYC cool. The young and hip staff greet guests in the lobby and check you in with the touch of an iPad. Savvy artists and creative types will fall in love with the understated luxury of all the spaces – from the library with its Zen lighting, timeless art pieces and designer chairs draped in cosy faux-fur throws, to the discreet designer furnishings in every room. 11 Howard is also home to Soho’s hottest new drinking and dining spots, The Blond and Le Coucou – the latter being a new French restaurant by Paris-acclaimed chef Daniel Rose. Le Coucou’s ornate vintagestyle bar counter has a hand-painted mural

▼ CITYSCAPE: The minimalistic design of 11 Howard is in contrast to NYC’s busy skyline, seen here from one of the hotel’s terraces. ◀ Find art deco glamour at The Mark Hotel.

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211 Regent Street • Westfield Shepherds Bush • London City Airport Case • Harrods • Selfridges TUMI.COM


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is now a renowned restaurant, headed by Geoffrey Zakarian from Iron Chef America. The intimate dining space is decked with artwork commemorating the original Lambs members and is centred around a 19th-century fireplace from France. What we especially love about The Chatwal, though, is its little secret of being one of the few central New York City hotels with huge terraced suites providing a calm oasis. The Producer Suite, for example, has a 1,200sq ft terrace and comes equipped with a butler’s pantry. For an extra dose of tranquility, guests can escape to the on-site Elizabeth Arden Red Door Spa.

130 West 44th Street NY 10036 thechatwalny.com THE LUDLOW

Industrial chic meets hipster cool at The Ludlow. Set in a 20-storey building with a red brick facade and big casement windows, this trendy hotel is one of the most happening spots on the Lower East Side. Open in this edgy and stylish ’hood since 2014, The Ludlow has a timeless and homely feel about it with its dark-stained hardwood floors, lofty ceilings and vintagestyle furnishings featuring some Middle Eastern touches such as Moroccan pendant lamps and oriental rugs. The guestrooms are shabby chic with exposed wooden beams, plush four-poster beds, sheepskin throws on armchairs and best of all are the views from the lofts. Book into the Skybox Loft for 180-degree views across Manhattan, from where you can see the lower tenement buildings, characteristic of the neighbourhood, to the cityscape beyond. The lobby lounge, with its grand fireplace and antique leather sofas, is where guests and a local crowd mingle by the bar, while tucked behind the lounge PHOTOGRAPH by (Ludlow) Annie Schlechter

The Chatwal is one of the few central New York City hotels with huge terraced suites providing a calm oasis. The Producer Suite comes with a butler’s pantry

is a courtyard garden ideal for lingering daytime cocktails. Another big draw is its classic French bistro – Dirty French – which is the hottest hangout in this zip code attracting NYC foodies in the know.

▲ TAKE A SEAT: [clockwise from main] Look out over the city from a Skybox Loft room at The Ludlow; vintage furnishings at The Beekman; sit back and relax on one of The Chatwal’s terraces.

180 Ludlow Street, NY 10002; ludlowhotel.com

philosophy, languages, history, maths and science and so on. Guests wanting to peel away from the hubbub of the city can take refuge on The Library’s rooftop floor where there are a number of cosy spots including the writer’s den and the poetry garden – a greenhouse sitting area with wicker furniture and views over Manhattan – perfect for sitting back with a book. The greenhouse opens onto a wrap-around brick-hued terrace for when weather permits and at the bar, you’ll find literary-themed martinis like the aptly named Tequila Mockingbird. The Library also offers complimentary wine and cheese every evening – ideal accoutrements to a ▶

THE LIBRARY HOTEL

A block away from the New York Public Library and occupying one of Madison Avenue’s most interesting neo-gothic style buildings dating back to 1913, The Library Hotel is – you won’t be too surprised to hear – a book lover’s paradise, and a peaceful retreat. True to its name, the boutique hotel has a literary concept inspired by the Dewey Decimal System and is home to a collection of more than 6,000 books. Each of the ten guestroom floors is dedicated to one of the ten categories of the system, from the arts,

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reopened more than a century after it was originally opened by the acclaimed American businessman John Jacob Astor IV in 1906. At that time, considered the height of the city’s extravagant golden age, the hotel played host to New York’s movers and shakers, from the Fitzgeralds to the Rockefellers. Today the beaux-arts landmark attracts a new wave of the city’s glitterati by bringing a renewed level of luxury to Times Square. Juxtaposing its hectic location, guests can take respite courtesy of the hotel’s elegant interiors with their soothing palette of neutral colours and clean design features. The hotel has 330 guestrooms including 31 suites, and is home to the upscale restaurant, Charlie Palmer at The Knick. To take it all in from above, head to The Knickerbocker’s rooftop bar and lounge, St Cloud, which has 7,500sq ft of indoor and outdoor space as well as unrivalled views of the bright lights of Times Square and the city’s skyline.

▲ URBAN OASIS: The courtyard bar at the High Line Hotel is a destination in itself.

▶ good book. The top city attractions are on its doorstep – Bryant Park, the Rockefeller Center, and of course the library, if you just can’t get enough literature in your life.

299 Madison Avenue, NY 10017; libraryhotel.com THE HIGH LINE HOTEL

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heirloom rugs, elaborate fireplace mantels and vintage wallpaper. They all have huge windows looking out either over the High Line Park or over the private courtyard. The lobby is different, too – there is no front desk to formally check-in, but rather you’ll find a zinc-topped Intelligentsia Coffee bar and café where friendly uniform-clad staff come and check guests in wirelessly. Stick around for coffee – it’s some of the best in town. 180 Tenth Avenue, NY 10011 thehighlinehotel.com THE KNICKERBOCKER

One of the newest additions to Manhattan’s midtown hotel scene, the ‘Knick’ recently

The recently reopened historic Knickerbocker Hotel is attracting a fresh wave of the city’s glitterati by bringing a new level of luxury to Times Square

THE NEW YORK EDITION

As sleek as it is sophisticated, Ian Schrager’s architecturally striking New York Edition is one of the most exciting recent designhotel openings in NYC. As you’d expect from the brand, it’s located in one of the most exclusive parts of the city – in the Flatiron District – and occupies the famous Met Life Tower right on Madison Square Park. Originally built in 1909 to resemble the bell tower of St Mark’s Basilica in Venice, the historic 41-storey clock tower offers 360-degree views over the city and is an iconic landmark. The style is minimalist and airy with whitewashed interiors and a light-filled lobby and lobby bar. The 273 guestrooms are spacious and made to feel like private residences with their oakpanelled foyers. The Clocktower restaurant, helmed by Jason Atherton, carries on the private members’ club feel with its dark mahogany-panelled dining rooms, velvet chairs and booths, and black and white photography of celebrities on the walls. To add to the old-world feel, there’s a billiards room and a sultry cocktail bar where the counter is made entirely of 24k gold leaf. 5 Madison Avenue, NY 10010 editionhotels.com/new-york H

PHOTOGRAPH by Jesse David Harris

It takes a lot to stand out in this crowded city, yet the High Line Hotel has achieved it. The 60-room boutique hotel is as hip as it is historic. Positioned in a resurgent part of Chelsea, just moments from the Meatpacking District and the West Village, it describes itself as an ‘urban sanctuary’. Housed in a 19th-century cloistered seminary of an Episcopal church, it’s surrounded by quiet private courtyards. The land on which it sits was originally an apple orchard, so the property’s design takes inspiration from this eclectic history. The building has a collegiate, gothic style, and inside it has mastered a modern-vintage design, furnished with Victorian and Edwardian antiques – oriental rugs, rewired 1920s phones, Tiffany-style lamps, exposed brick walls and taxidermy artwork on the walls. The guestrooms are spacious, have dark hardwood floors and give the vibe of a private home in a bygone era with ornate

Six Times Square, NY 10036 theknickerbocker.com


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A Land of Plenty From mist-shrouded jungles teeming with wildlife in the east, to the Spanish colonial cities, gilded churches and Galapagos islands in the west, MATT HUSSEY discovers that Ecuador’s diversity is genuinely astonishing

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ECUADOR GALAPAGOS

PHOTOGRAPH by Wolfgang Kaehler/LightRocket via Getty Images

A LARGE LIZARD sits sunning itself on the rugged volcanic rock. A moment later an identical reptile appears alongside it, glistening in the midday heat. Within minutes the grey-brown, earthy tones of the coastline have been turned a shimmering black as dozens of marine iguanas leap out of the choppy sea to warm themselves after a dip in the chilly Pacific. Our guide points to a sea turtle, whose head occasionally breaks the surface before heading down into the blue depths in search of the lush green algae that the iguanas also love to eat. Away in the distance a colony of sea lions frolics offshore while bright red rock crabs scuttle among the nooks and crannies of the coast. This image was probably one of the first the Bishop of Panamá Fray Tomás de Berlanga saw when his ship was blown off course and bumped into the then undiscovered Galapagos Islands in 1535, thus becoming the first European to set eyes on the huge, varied array of distinct flora and fauna that lived there. When Charles Darwin arrived on the islands some 300 years later this flourishing sea scene brought on revulsion. “The black lava rocks on the beach are frequented by large, disgusting clumsy lizards. They are as black as the porous rocks over which they crawl and seek their prey from the sea. I call them ‘imps of darkness’. They assuredly well become the land they inhabit,” Darwin wrote. While the naturalist may not have been the biggest fan of the iguanas, they, alongside 14 other species known collectively as the ‘big 15’ are today the Galapagos’ greatest attraction. This modest, 19-island archipelago some 600 miles west of Ecuador is now a Unesco World Heritage Site, a biosphere reserve, the world’s second largest marine reserve and one of the few examples of successfully limiting human encroachment into environmentally sensitive areas. It’s the jewel in Ecuador’s crown. But there’s more to the country that derives its name from the equator that runs almost straight through it. This small South American state sandwiched between Colombia to the north and Peru to the east and south has been declared by many experts to have more biodiversity

than anywhere else on earth. And I was determined to sample some of it.

A forest in the clouds Most international flights bring travellers into Quito, the country’s capital and the first place – alongside Krakow in Poland – to be declared an official World Heritage Site by Unesco in 1978. Squashed between three active snowcapped volcanoes, the city is perched on and around a plateau some 10,000ft above sea level, making it the world’s highest capital city. It sprawls high into the surrounding hills, but the focal point for many is the historic centre. It was here Spanish conquistadors set up the administrative heart of their Latin empire, and it’s the location of my first stop. Looking over the Plaza de San Francisco and the monastery of the same name, is the Casa Gangotena hotel. Situated inside a renovated historic mansion that was previously home to several of Ecuador’s presidents, it’s an exquisitely decorated 31-room hotel filled with roses and orchids. There’s a roof terrace offering views of the city as it sprawls down the valley out to the west. The old city itself is the largest collection of intact colonial buildings in the Americas, with some 5,000 properties designated historically significant. Among those are churches. A lot of them. Inside the monastery on San Francisco Plaza, you’d be forgiven for thinking that the place of worship for dozens of monks would be a pretty modest affair. But the church of San Francisco was built at a time when Spanish architecture was about projections of power and wealth. The original tower was for hundreds of years the tallest structure in the city, ▶

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▶ before

an earthquake brought it crashing down. It has since been rebuilt at a safer height. Inside, the ceilings are covered in intricate hand-carved awnings while the walls are adorned in gold leaf. It’s a theme you’ll find in nearly all of the old city’s religious buildings. La Iglesia de la Compañía de Jesús, known colloquially as La Compañía, is a Jesuit church little more than 100m away that has gold leaf plastered across the giant double doors for passers-by to see. Spanish soldiers in the 16th century quickly discovered vast quantities of gold and silver under Incan control, and the churches of Quito were to be the displays of their spoils. But while the old colonial capital was fascinating, I was here to discover the jewels of the natural world.

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Just three hours away by bus, in the foothills of the Andes, there’s a cloud forest – a type of rainforest – that holds more species of orchid, butterfly and bird than all of Europe combined. Ecuador’s cloud forests are part of a larger stretch of woodland called the

Three hours from Quito, in the foothills of the Andes, there’s a cloud forest that holds more species of orchid, butterfly and bird than all of Europe combined

Tumbes-Chocó-Magdalena, or El Choco to locals. This hotspot of biodiversity reaches from Panama in the north down to Peru in the south. However, most of the forest in those countries has been logged or removed in favour of pasture for cattle. However, the area surrounding Mashpi Lodge – my home for three days – is surrounded by what scientists call ‘primary forest’. This an area that has had zero contact with people – and as such, retains its incredible levels of biodiversity. Getting to the lodge requires traversing a rocky dirt track, originally created as a logging road to gain access to the deeper parts of the forest but since abandoned. The perimeter of the hotel is patrolled by guards and makes you feel like you’re entering Jurassic Park with its giant wooden gates.


ECUADOR GALAPAGOS

Over three days I got to swim in hidden waterfalls, see more wildlife than I thought possible outside of a zoo, and ride a bicycle across the forest canopy

PHOTOGRAPH by (Sylph) Juan Carlos Vindas/Getty Images

However, upon arriving at the hotel, you’re taken aback by the clean, minimal lines and huge panes of glass nestled in the dense green of the cloud forest. I was greeted with a juice made from fruit picked locally that day and a cooling towel before being shown my room. Each suite has floor-to-ceiling glass facing out into the jungle. “It’s the best widescreen TV money can buy,” the porter tells me. Everything about the hotel is geared towards the outdoors. There are two viewing platforms on the roof allowing visitors to gaze across the verdant views occasionally spotting toucans, and hear the low wails of howling monkeys feeding on fresh leaves in the canopy. Within four hours of leaving the capital, we were trekking through dense forests. And when I say dense, I mean dense: cloud forests are unique thanks to the fact their near constant temperatures and rainfall – almost double what you’d find in the Amazon mean the ecosystem has dozens of epiphytes, or plants that live on each other. There are mosses on the trunks of trees, orchids between the mosses, ferns growing on branches, algae covering leaves. If it’s green, there’s something growing on it. Which makes seeing wildlife incredibly tricky, were it not for our guides. They can spot glass frogs – amphibians with translucent skin – sitting on giant leaves, locals call elephant’s ears, tiny camouflaged snakes known as colubrids slithering through the undergrowth and giant umbrella birds perched on distant branches with absolute ease. But perhaps the biggest draw of the Mashpi Lodge is its humming bird station. At dawn the next day we drove up to a series of benches that appeared to be placed at random. But as we got closer, we could see tiny birds darting around.

The reserve has 22 species of hummingbird, all featuring distinct colours, sizes and adaptations to the tiny ecosystems they reside in. Thanks to a few strategically placed bananas and nectar pots, they flock to the station to feed every morning. It was an unforgettable experience. Over three short days I got to swim in hidden waterfalls, see more wildlife than I ever thought possible outside of a zoo and ride a bicycle across the forest canopy via the hotel’s skybike – a crude steel tube frame, a few peddles and a cable stretching out over a vast ravine below. It’s an amazing way to experience this corner of the world. But at the risk of forgetting why I came to Ecuador, I returned to Quito for a fourhour flight to Baltra island on the Galapagos.

Islands born out of the ashes I arrived on the archipelago in the cool, dry season. But thanks to its position straddling

the equator, Galapagos in winter has a balmy average temperature of 24°C. I was here to see the islands, but before boarding the expedition ship Santa Cruz II, I was in need of some well-needed R&R after the days spent trekking through the primary forests of El Choco. I checked into the Finch Bay Eco Hotel, a boutique destination designated the world’s leading green hotel two years running. Set just back from the beach, this quiet, discreet hotel is tucked away from the town of Puerto Ayora and accessible via water taxi. Here, you’ll share a bench with sleeping sea lions and red rock crabs. The hotel has its own private yacht allowing you to explore the huge swathes of nearby islands including Santa Fe, North Seymour and South Plaza. All boast iguanas, seals, sea lions and boobies both of the blue and red-footed varieties. But I wanted to explore the more ▶

▲ MEET THE LOCALS: [clockwise from here] Ecuador’s native hummingbirds; the pool at Finch Bay; the hotel’s garden; Quito at night.

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▶ remote

parts of the Galapagos, where whale sharks drift in the ocean currents and where Darwin’s finches feed alongside the flamingos. Yes, flamingos. I was definitely going to need a bigger boat. The Santa Cruz II is a recently commissioned luxury expedition ship, capable of carrying 90 guests in opulence into the lesser-known reaches of the islands. Departing from Baltra Bay, our first stop was Las Bachas beach and its briny lagoons. Named after the barges the US military left there at the end of the second world war, today flamingos wade through the warm pools of water sat behind the beach. We watched the sun set behind the

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but the best view of the island was in fact on the tiny Bartolome island to Santiago’s east. Created by volcanoes, the landscape is dominated by the cinder cones that brought magma from the earth’s core to create a lunar-like terrain that still bears the scars of past eruptions. Most of Santiago’s size is attributed to low, jagged lava flows that stretch into the Pacific. Watching over proceedings is Pinnacle Rock, a jagged, shark-tooth shape rock structure that came into being after the US Navy used the formation as target practice during the second world war. From those incredible views over the islands, it was back to the boat for an overnight sail to San Cristobal island, where the cruise came to an end. As a country that’s roughly the same size of the UK, with the history of Peru, biodiversity of Brazil and the transport links of a western European country, Ecuador really has so much to explore. H Jacada Travel (jacadatravel.com; 020 31 314 586) offers ten-night trips to Ecuador and the Galapagos, including a Galapagos cruise and stays at Casa Gangotena, Mashpi Lodge and the Finch Bay Eco Hotel from £7,113pp, including flights.

PHOTOGRAPH by Jesse Kraft / Alamy Stock Photo

Santiago’s landscape is dominated by the cinder cones that brought magma from the earth’s core to create a lunar-like terrain that reflects eruptions past

International Date Line a few thousand miles away to the west before eating a sumptuous dinner on board. The next morning we set off for a quick sail over to Santiago island and Buccaneer Cove. Named thanks to its reputation as a temporary home for British pirates who were looking to surprise Spanish merchant ships leaving mainland South America full of gold, today its inhabitants are made up of nesting birds including petrels, shearwaters, nazca boobies and their non-flying cousins, the Galapagos penguin. Beneath us were dozens of Galapagos sharks, parrot fish and bright, orange-speckled starfish. I’d never seen such high concentrations of wildlife. From there it was a short zodiac ride to Puerto Egas, a long, flat, black lava shoreline where eroded shapes form lava pools, caves and inlets that offer shelter for birds, fish and sea lion pups. The area is named after Dario Egas, the owner of a salt mine on the island, who at one point was the only salt producer in all of Ecuador. The mining has gone elsewhere, but you can still see the scars of the excavations among the scrub. Off in the distance Santiago loomed,


TRAVEL

The Road to Mandalay

Life on Mars? You can keep it. VICKY SMITH embraces her inner rock star and heads to David Bowie’s former residence on the Caribbean island of Mustique for an experience that’s out of this world

▲ FANTASY LAND: Mandalay’s infinity pool looks out over the Caribbean Sea, and is surrounded by antique Balinese carvings. ▶ Flamboyant furnishings continue inside.

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CARIBBEAN MUSTIQUE

THERE ARE CERTAIN destinations with reputations that precede them. Those parts of the world that you hear about, perhaps take a vicarious interest in, but then realise that no, not in this life will you make it to such a place. Not unless your imagined existence as a rock star comes into fruition. And then, unbelievably, you find yourself in a plane, flying over the Caribbean Sea to Mustique, one of the most exclusive islands on the planet. Could it be that dreams really can come true? Apparently so. As I sit in the humid air of our ten-seater propeller plane, repeating the words “you’re going to Mustique, you’re basically royalty now” over and over in my head, I fear my approach to the situation is significantly less nonchalant than that of your standard holidaymaker to this part of the world. But then your average Mustique vacationer really is anything but average. This paradise island, which stands some 121 miles from Barbados, was the brainchild of Lord Gleconner, who purchased it in 1958 for the now absurdsounding sum of £45,000. After its plantations were abandoned, the island had been virtually forgotten, but enterprising Lord G saw the potential to create a marquee destination that would target a certain status of holidaymaker – those seeking peace, quiet and exclusivity. In 1960 he presented Princess Margaret with a plot, and she fell in love with it. Her enthusiasm (and regular presence) secured Mustique’s rep as the destination for the world’s very, very rich and very, very famous, and the rest is superstar holiday history. As our tiny plane touches down and we exit onto a runway that leads to a charming wooden airport with a thatched roof, I’m imbued with a feeling of complete, utter delight, verging on the smug. It is

On an island covered in colonial-style mansions painted in tasteful, muted tones, Balinese-themed Mandalay is almost entirely made of carved wood

absolutely impossible not to be: you just casually stroll up to the arrivals desk, with not another holidaymaker in sight, and glide on through to meet your transfer, which in our case was a fleet of golf carts (the preferred method of transport on the island), lined up and waiting to take us onwards to our destination. Zooming across the sun-soaked island in the welcomingly breezy buggies, my eyes widen by the second – the white sandy beaches are pristine, and the pastel-painted beach shacks and shops are unquestionably picturesque, but it’s the houses I can’t believe. They. Are. Enormous. We’re not just talking pretty beach villas, but actual, bonafide mansions, with plots of private beach, sweeping driveways and separate wings for guests, family and, in some cases, ex-wives (or so we’re told by our driver). Our little convoy trundles past Mick Jagger’s place, which is surprisingly understated compared to his neighbours’ (although when I say understated, I’d hazard a guess there are at least ten bedrooms), before slowing down to admire Bryan Adams’ ‘holiday home’. He’s not in apparently, but this could just be a ruse to prevent us from shouting “do ‘Summer of 69’” over the fence. Shortly afterwards, Tommy Hilfiger’s palatial pale grey and cream residence comes into view, complete with grand entry pillars and immaculately manicured garden akin to a small park. We carry on uphill, past the famous Cotton House Hotel, and a pretty white and yellow villa where (naturally) the Duke and Duchess of Cambridge have stayed, before arriving at our Mustique home. As is the nature of the island, this is no ordinary home. In fact, even in comparison to the properties we’ve already eyeballed, this one’s pretty special: it’s more stylish, more mysterious, more…enchanting. We exit the buggies and step straight into the lobby of Mandalay, a sprawling estate designed by the starman himself, David Bowie. Sensing our astonishment – it must be a standard reaction to the place – host Norbert, who manages the property, invites us in to sit down, have a drink, and take stock of our remarkable surroundings. As we sit slightly agog, I know we’re all thinking the same thing: “Did HE sit here?” Chances are, it’s a yes. But it’s

not just Bowie’s legacy that lives on in Mandalay: second owner Felix Dennis, the late founder of Dennis Publishing, bought it from him in 1994. He did, says Norbert, “develop and continue the Bowie influence,” and you do indeed get the sense that the Mandalay that stands today is a collaborative effort. Albeit one with a portrait shot of Bowie in the guest loo. Anywhere that’s the combined vision of two extraordinary, eccentric Englishmen with a mutual penchant for parties is OK by me, and their influence is stamped all over the place. It’s apparent first off in the design itself – on an island covered in colonialstyle mansions painted in tasteful, muted tones, Balinese-themed Mandalay is almost entirely made from wood. Not just any wood though – Bowie wanted traditional carvings on the walls, so that’s what he got, 300-year old ones imported from Bali to be precise, which provide a suitably exotic backdrop to the stunning koi carp pond that lies at the centre of the property. ▶

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▶ Beyond the pool is a panoramic view of the ocean that just doesn’t end (although is punctuated by Saint Vincent on the horizon). Both pond and pool are flanked by terraces and balconies leading to an opulent drawing room, complete with palm-print ceiling, an enormous Murano glass chandelier and leopard-print upholstery – as per Bowie’s original design – as well as an open-air pavilion dining area and bedrooms (the property accommodates 14 people in total). In mine I find a collection of CDs curated by Dennis and smile to myself as I rifle through them and learn that he too was a fan of Buddy Holly and Oasis. It seems uncouth to listen to Liam’s northern drawl while sitting in Bowie’s old bedroom, so I get my iPod out, whack on ‘Modern Love’ and crack open a local lager that I find in the fridge, before continuing to nose about. I soon come across a recording studio and a games room that’s packed full of musical nostalgia. There’s a stage in the corner on which Mick Jagger, Ronnie Wood and Robbie Williams have all strutted their stuff, although you can bet that’s just the tip of a pretty starry iceberg. And then there’s the study with its shell-encrusted walls illuminated by gently twinkling LEDs... After 15 minutes wandering around, it’s clear to see that this is a total fantasy house, a place that doesn’t just push the boundaries, but smashes them into a million beautifully designed pieces.

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I quickly learn that days at Mandalay are spent doing as little or as much as you like, and staring at that view – which was part of the reason Bowie sold the property, as it distracted him from his creative pursuits – is one of the most popular ways to spend time. Eating and drinking are also big on the agenda: guests can put in requests for whatever they’d like, and the team at the house will provide it. If they were shocked by the amount of Whispering Angles rosé we consumed, they never showed it. Beyond the magical confines of the house, we venture to the island’s unspoilt and often deserted beaches for picnics and seafood barbecues served under the shade of palms on Mandalay branded china.

One afternoon is spent snorkelling among luminous fish in the shallow turquoise Caribbean Sea at Lagoon beach, and another bird-spotting along the wilder Atlantic coast, before returning to Mandalay to soak up the evening sun. Sitting under the lateafternoon rays, gazing around the house, I get the feeling that the team who work here must have seen it all: the parties that Dennis held at Mandalay are legendary, but nobody’s revealing any details. Discretion is very much the order of the day. While we are doing our best to recreate the A-list magic at the in-house bar – the Bamboo Lounge – I look out over the pool beyond. If the sparkling waters could speak, you suspect the stories might be the kind that would prompt a court-issued gagging order and a prayer from whoever starred in them. And I realise that’s exactly what makes this place so alluring – the opportunity to sample a slice of a lifestyle that generally, money just can’t buy. A dose of wickedness and frivolity usually reserved for those who have topped the charts, trod the catwalks or filled the cinema screens. It’s a feeling of escapism not just from London, but real-life in general, and if ground control comes calling, I can tell you now that you’ll be reluctant to answer. H For more details on Mandalay, visit mandalayestate.com. Rental prices for seven nights exclusive use for 14 guests from £30,000. Fly to either Barbados or St Lucia with Virgin Atlantic and then take a short connecting charter flight to Mustique which is arranged with the house manager at time of booking.


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Aiming for Perfection

Hunting may not be the first activity you associate with a visit to Mauritius, but you can now pursue beautiful beaches and the thrill of a shoot on the same trip, all with the family in tow, says SELENA BARR

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reveal that we have uncovered one such place: Heritage Resorts in Mauritius has formed a close working relationship with Le Chasseur Mauricien, the island’s longest established hunting outfitter. Part of the Small Luxury Hotels of the World group, Heritage Resorts has two neighbouring five-star hotels located on the Domaine de Bel Ombre in the wild southern part of Mauritius. The Africanthemed Heritage Awali Golf & Spa Resort is most suited to families and the colonial-themed Heritage Le Telfair Golf & Spa Resort is geared towards couples and gastronomes. When I visited with my

husband and 11-month old baby we stayed at Heritage Le Telfair. Our stay was in mid-June, so it was low season meaning the hotel was far from full and the temperature was a comfortable 25-27ºC each day, plus there were hardly any mosquitos. Rooms are equipped with every baby amenity imaginable, including steriliser, changing mat and cot. Plus there’s a free kids’ club so parents can enjoy some childfree hunting in the hills directly behind the resort. The club is run by highly trained nurses and can cater for children aged 0-11 years old – I felt instantly at ease leaving my baby with the staff, and never worried about

PHOTOGRAPHS by Tweed Media

THE DEMOGRAPHIC OF hunters has changed considerably over the past decade. Once upon a time, there were very few women that took part and men traditionally favoured adult-only, male-only hunting trips. Times have changed however, and not only is there now a growing number of female hunters, but the modern-day father’s attitude has altered as well. As a result, more and more families want to incorporate hunting into their annual holiday. Here’s the rub: there are very few venues around the world able to cater for the needs of a family wanting both wilderness hunting and a luxury resort. But we’re delighted to


MAURITIUS COUNTRY PURSUITS

her when I was out all day hunting. The tiny tropical island boasts a variety of quarry including majestic rusa deer, wild boar and a range of exotic winged-game species such as francolin. My primary focus was rusa. Sometimes known as ‘Java deer’, rusa were introduced to Mauritius in 1639 by the island’s Dutch colonial governor to provide meat. With no predators, rusa adapted well. Today, the population is estimated to be 60,000 mature animals. In its native Indonesian homeland, on the remote islands of Java, Bali and Timor, rusa are classified as ‘vulnerable’ by the International Union for Conservation of Nature (IUCN). This is due to habitat loss, habitat degradation and poaching. However in Mauritius the non-native species is thriving thanks to sustainable hunting, and the island is now home to around 40% of the world population. In fact, the IUCN states that rusa in Mauritius are an ‘economical problem’ owing to the damage they can cause to valuable sugar cane crops. For this reason, the rusa must be contained within fenced-off areas, by law. Le Chasseur Mauricien has managed 4,000 hectares on the Frédérica Nature Reserve since 2003. Frenchman Lionel Berthault, who runs Le Chasseur Mauricien, explained: “One of the most important Mauritian exports is sugar, so the government made it mandatory to contain the deer to stop them eating and trampling the sugar cane, which covers a third of the island. Hunters should not be concerned by the fence, as our hunting area is vast and they will not encounter any wire. The fence exists for the good of the herd, the farmers and the island. It does not detract from the overall hunting experience at all.” Fourteen years ago Berthault joined Nicolas Chauveau, who has now been

managing the area for 26 years. Together they have created a very slick, professional outfitting business. To protect the herd of 2,500 animals from poachers and stray dogs, they employ 11 watchmen and four gamekeepers. By tirelessly exhibiting at hunting shows around the world, Le Chasseur Mauricien has helped turn Mauritius into a first-class hunting destination and they now welcome more than 1,000 hunters each year. As a qualified professional hunter, Lionel has hunted on almost every continent with his bow and rifle. “I have experienced both good and bad hunts, so I understand what is required by hunters when they are visiting a foreign country for the first time with their family in tow. I get that spouses and children also need to be catered for. Joining forces with Heritage Resorts was a no-brainer. I don’t know of any other hunting destination that can offer visitors the same service.” The Frédérica Nature Reserve Lodge is located atop a hill that commands breathtaking views of the Indian Ocean.

All around the lodge were grazing rusa, giving us the impression the hunt might be easy. How wrong we were. Before setting off, we were served a simple – but utterly delicious – lunch of pan-fried rusa and freshly baked bread. Cooked the traditional Mauritian way using soy and oyster sauce, the venison was tender and tasty. The island has a population of about one million people, most of whom are Muslims, Christians or Hindus. Some do not eat beef, and others do not eat pork, but they all eat venison. For me, hunting is about harvesting organic wild meat – medal-class trophies are never my (sole) goal. That said, Lionel was keen that I cull an old goldmedal stag with 34-inch antlers as part of his management plan. Ideally he wanted an animal aged at least eight years old that had already passed on its good genes and was now past its breeding best. ▶ ▼ PASTURES NEW: [clockwise from below] Beachside dining at Le Telfair Golf & Spa Resort; the resort’s pool; rusa deer thrive in Mauritius, and the island is home to 40% of the world’s population.

Over the past 14 years, Mauritius has become a first-class hunting destination, with more than 1,000 hunters visiting the island every year 81

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MAURITIUS COUNTRY PURSUITS

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▶ EYES ON THE PRIZE: Selena Barr swapped the UK’s hunting terrain for a more exotic shooting experience in Mauritius.

▶ The

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Suddenly, a pesky raven spotted us and alerted the herd to our presence, and the deer instantly stopped feeding and became jumpy, moving back inside the forest. My heart sank, and Lionel ushered me to move off again. We walked quickly, hunched over, trying to disguise our silhouettes, and Lionel whispered to me that he knew a short-cut over another river so that we could make up ground. I was already soaking wet and covered in mud, so one more river would not hurt. Once across, we scrambled up a steep, muddy embankment to a vantage point, and sure enough, the herd was below us, just 80m away. Lionel directed me onto a lone stag, which was facing us. Lying prone, I used Lionel’s binoculars as a makeshift bipod to support the forend of my rifle. Two seconds later the stag turned broadside. I gently squeezed off a round. The stag hunched its front shoulders before running off – a classic double lung reaction. Sure enough, we found the expired beast just inside the forest. I felt proud for

KIT BOX ■■

GUN: Sauer 202 Lux in .308, sauer.de

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SCOPE: Leica Visus 2.5-10x42 riflescope, leica-sportoptics.com

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BINOCULARS: Leica Ultravid 8x42 ‘Safari Edition’, leica-sportoptics.com

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AMMO: Hornady Precision Hunter 178-gr ammunition, hornady.com

harvesting my first rusa deer – and pleased that I had honoured the stag by shooting it cleanly. Despite what much of the media may say about sport hunting, I believe that conscientious hunters are the caretakers of this vulnerable species – and hope that they continue to flourish here. Two of the gamekeepers met us at the purpose-built larder to butcher and process the carcase. After helping as much as I could, we then departed back to the hotel to collect my daughter from the kids’ club. The hunting ground was just two miles away, meaning that the jungle-clad hills that hold the game are only a ten-minute car journey away from the award-winning resorts and the pristine beaches. A quick shower and change later, and the three of us were in Annabella’s restaurant enjoying some local delicacies such as palm heart and venison gravlax for dinner, recounting the hunt step by step. What a day! The next day we decided to relax and enjoy the hotel facilities as a family. Our room opened out onto an immaculate beach with calm water, there was a heated pool for the little one, and luxury massages for me and my husband in the couples’ suite at the spa. What more could an avid hunting family want from a holiday? H A two-day hunt for a representative rusa stag costs €5,500, including seven nights accommodation for two adults and two children (under 12) at Heritage Le Telfair Golf & Spa Resort on a half-board basis or at Heritage Awali Golf & Spa Resort on a fullboard basis. This also includes trophy preparation, transfers, permit, rifle hire, ammunition and a small game hunt. For more information: resa@heritageresorts.mu; heritageresorts.mu

PHOTOGRAPH by Tweed Media

resident population are not perturbed by vehicles, but are super wily and easily spooked around humans. We drove along an unmade dirt track for around 45 minutes, which took us high up into the mountains. With my nose permanently pressed up against the truck window, the views back down to the ocean were incredible. The island is teaming with wildlife, and we spotted numerous bizarrelooking flying foxes, colourful parakeets, and playful long-tail macaques. Lionel and I abandoned the car and set off on foot in search of our quarry. The plan was to hunt an area around a derelict 300-year-old sugar cane processing plant. First off we perused the hunting ground from a high seat. Then, without warning, torrential rain started to fall. We took shelter under a low-lying palm but just as quickly as the rain started, it finished. Ten minutes later the skies were back to cloudless azure which encouraged the rusa to graze out in the open. For four hours we stalked along the forest edge, waded through swamps, crossed rivers and negotiated dense jungle until we eventually glassed a herd with an appropriate stag. We saw many beasts, stalked into a few, but they were never quite right. We then spotted a herd of 12 beasts, nine of which were grazing and three were twitchy and on the look-out for danger. They definitely could not see us as we were hidden in the dark forest. There was no wind either, so they could not smell us. We now needed to examine the herd to ensure the stag in question would meet the requirements of the management plan.


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Auctioneers of Fine Modern and Vintage Sporting Guns, Ries and Accessories

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PHOTOGRAPHS by Firstname Surname

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ART MAPS

Map It All Out Maps don’t just have to tell you where to go – these artists have been led to create clever pieces that are based around them, says MELISSA SCALLAN

PHOTOGRAPHS by Firstname Surname

Shelley Heffler Age five, Bronx-born Shelley Heffler loved topographical map books – with their beautiful colours, shapes, lines and abstract forms. Age eight, she would squeeze through the bars and sneak onto the New York subway, checking the wall-map to decide her route. In her early 20s she travelled the world: jumping on and off buses, map in hand. Her interest in creating map-themed art is, perhaps, no surprise. Heffler’s abstract works are created through a multi-stage process. Working on a flat canvas, the colour palette will be informed by the temperature of the real or imagined place, she will include topography, points of interest, boundary lines and reference might be made to satellite imagery. Many layers of paint will be added; sometimes they are dug into – creating indentations and revealing layers beneath; the canvas may be twisted to reflect weather patterns – hurricanes and tornadoes – or pulled and pushed to enhance the topography, resulting in work four to six-inches deep (“the depth is real, it’s not illusory”) and then a final layer of paint may be added. Heffler is also a ceramicist and a sculptor – disciplines clearly present in her painted work. For more information, see shelleyheffler.com

◀ A ROAD LESS TRAVELLED: Shelley Heffler (2015). Acrylic and enamel on canvas. 28x36x4 inches. Courtesy of the artist.

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LEADING THE NOBLE PURSUIT O F F I N E W I N E S S I N C E 174 9 Justerini & Brooks. Portfolio, expertise and personal service. Justerinis.com/discover


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ART MAPS

Kristjana S Williams Transport for London proclaimed 2014 ‘The Year of the Bus’ and Icelandic artist Kristjana S Williams designed a striking image to commemorate it. ‘Green Branch Line’ – based on an original fold-out route map Williams obtained from London Transport Museum’s Depot in Acton – is adorned with an array of imagery from Williams’ enormous library of engravings that she cuts, scans, colours and re-works into a seamless collage. Hailing from a country of just 300,000 people, Williams describes London as “vast and inspiring” and that travelling within the city “evokes a sense of wonder”. She includes images of St Paul’s Cathedral and Big Ben to highlight the magnificent sights of London, the deer and rats to signify the countryside destination of the Green Line coaches, and – for aesthetic fun – adds surreal touches in the form of the lobster and the sea horse. Because, well, why not? In the last five years, Williams’ work has become increasingly high profile with collaborations and commissions from clients that include the Christmas windows and award-winning packaging for Fortnum & Mason; a five-metre work for the Shard; and limited-edition prints and a 2016 Christmas card for the V&A. For more information, see kristjanaswilliams.com

▶ GREEN BRANCH LINE: Kristjana S Williams (2014). Giclée print on Hahnemuhle Photo Rag 300gsm archival paper. 550mmx720mm. Edition of 100, £185/original, £2,500. Courtesy of the artist.

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Loraine Rutt Cartographic artist Loraine Rutt was inspired by Charles Booth’s Victorian poverty maps to create porcelain wall reliefs illustrating the distribution of wealth in contemporary London. The dark blue of ‘Have and Have Not’ identifies council wards where at least 20% of children are in poverty where as the 18-karat gold dots represent houses sold for more than £1m in 2013. Rutt was interested to see that the current distribution of wealth remains generally in the same geographic locations to that of the 1880s – although with some differences, notably along the River Thames, which reflects the change in its primary usage from shipping to leisure and vista; also that prime property is often in geographically elevated locations, such as Hampstead, Blackheath and Dulwich, which she identifies in the raised layers of her work. Rutt also creates beautiful miniature porcelain globes: encased in oak with celestial interiors, the globes are topographically correct and handscribed with the continents and lines of longitude and latitude. Two globes recently entered the private collection of Apollo 15 Command Module pilot Colonel Al Worden who was delighted, Tweeting: “What you do is brilliant!” For more information, see tagfinearts.com

▲ HAVE AND HAVE NOT: Loraine Rutt (2016). Porcelain and 18-karat gold. 31x39x2cm. Edition of ten: £1,200 each. Courtesy of the artist and TAG Fine Arts.

◀ LAND AND SEA: Loraine Rutt. Natural oak desk case with Cobalt Celestial interior. Porcelain globe 7.5cm diameter. Case 12x9.5cm. Signed and dated by the artist, £495 Courtesy of the artist and TAG Fine Arts.

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ART MAPS

▲ EUROPE 1960s – COLD WAR: Yanko Tihov (2014). Archival print, hand gilded with 23-karat shell gold and silver. 61x83.7cm. Edition of 30. £1,200. Courtesy of the artist and TAG Fine Arts.

Yanko Tihov Obtaining dual nationality in 2010, artist Yanko Tihov was surprised at the similarity of the British passport to his Bulgarian one; on further investigation, it transpired the colour is a European Union regulation and all member states (except Croatia) issue passports in burgundy. Post-Brexit, Tihov suspects the British passport will revert to blue – its colour in nine previous iterations. On completing a passport map artwork entitled ‘Contemporary Europe’, Tihov decided to match the same geographical area with passport covers from the Cold War period. Although originally intended

as a visualisation of the various historic passport colours, the work serves as a reminder of the different unions formed and destroyed throughout Europe during the last 50 years: the division and reformation of Germany, the union and separation of Soviet Russia, the creation and collapse of Yugoslavia. This work – and many others in Tihov’s oeuvre – illustrate how quickly borders change and move and how people from different cultures can appear and then disappear. Yanko Tihov’s work will be on display at the London Art Fair in January 2017. For more information, see yankotihov.co.uk

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Jorge Mañes Rubio Spanish artist and TED fellow Jorge Mañes Rubio is currently the artist-in-residence at the European Space Agency; he’s designing a temple for the moon to serve the spiritual needs of future settlers. Rubio’s interest in the colonisation and exploitation of celestial bodies is present in an earlier work, ‘Mission U-TOPIA’, where he created Akitoshi Fujiyama, a Japanese engineer who discovers a lunar meteorite on a local golf course and then embarks on a quest to go to the moon – to acquire meteorites to sell. Designing an exhibition around this scenario, Rubio created and collected a variety of artefacts including a NASA map of the south pole of the moon, which he re-worked, adding new layers and replacing colours. During the development of work, Rubio persuaded the chemical giant UBE Industries to allow him to visit a quarry, remove a series of rocks, travel on its 35km of private highway and decorate its 80-tonne lorries with his geologic map. The rim of the Shackleton crater (yellow circle) is a peak of eternal light, where solar power could be harnessed, whereas the crater itself is in perpetual darkness, suggesting ice. This is the intended location of future settlers and Rubio’s temple. H Jorge Mañes Rubio’s latest project, Design Museum Dharavi, features in the Beazley Designs of the Year at the newly located Design Museum from 24 November 2016-19 February 2017. For more information, see seethisway.com Are you searching for a unique and special Christmas gift for a loved one, for an important client or for yourself? Our resident art expert Melissa Scallan can find you the perfect piece of art. See melissascallan.com

◀ GEOLOGIC MAP OF THE SOUTH POLE OF THE MOON: Jorge Mañes Rubio (2015), from the Mission: U-TOPIA series. Giclée print on Hahnemuhle Photo Rag Baryta 315 gsm. 90x60cm. Edition of nine. Based on CM Fortezzo and TM Hare’s Completed Digital Renovation of the 1:5,000,000 Lunar Geologic Map Series, 2013. Courtesy of the artist.

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375 Kensington High Street LONDON

Find yourself in the clouds

Live in the height of luxury at 375 Kensington High Street, with elegant and contemporary interiors, bespoke leisure facilities including vitality pool, spa, sauna, state-of-the-art gymnasium, private cinema, Harrods concierge service and breathtaking views. All from one of London’s most sought after new addresses. 1, 2 & 4 bedroom apartments and penthouses from £1,282,500. Apartments available for immediate occupation. Sales & Marketing Suite open daily 10am to 6pm (Thursdays until 8pm).

Completely Kensington. Completely you. Images are indicative only. Prices correct at time of print.

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Show apartments now available to view Call 020 3813 2390 for your private appointment


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Now almost any Rolex Daytona, so long as it is authentic, represents a serious chunk of cash INVEST YOUR TIME WISELY . 104 CHRISTMAS . 96 | WATCHES . 104 | GOLF . 108 | MOTORS . 110 | WINE . 115 | PROPERTY . 119 | HEDGE LEGEND . 122


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Present Sense

Still not decided what to buy your loved ones for Christmas? Allow us to nudge you in the right direction…

1. JEFF KOONS FOR BERNARDAUD ■■

MAGENTA BALLOON DOG

The original Balloon Dog sculpture sold for a cool $58.4m. Now Jeff Koons has collaborated with French porcelain maker Bernardaud to create a miniature, 3D version of this historic work – attached to a plate. Just don’t eat off it. £6,900, harrods.com

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All products available from


GIFT GUIDE HARRODS

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SPARKLING CLUSTER

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EVIDENZA WATCH

FENDI ■■

DOTCOM HANDBAG

Harry Winston has rustled up something very special this Christmas with its Sparkling Cluster collection. Round brilliant and pearshaped diamonds are set in a fluid pattern to seemingly float against the wearer. These ones are not just for Christmas. £POA; harrods.com

Alongside handbags or perfume, we believe you can bestow no greater gift on a lady than a really fantastic watch. And the Evidenza watch from Longines is most certainly fantastic. The diamond bezel and shining steel bracelet will improve any wrist fortunate enough to wear it. £1,450; harrods.com

House your accessories in style with the black and gold studded version of Fendi’s hugely popular Dotcom handbag. Made from black calf leather, the handbag is divided into two zipped compartments. Sturdy yet luxurious, the classical satchel shape is fit for any occasion. £2,320; harrods.com

BAUME ET MERCIER

PIAGET

FABERGÉ

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PETITE PROMESSE

Swiss watch brand Baume & Mercier has partnered with Harrods to offer an exclusive burgundy strap for its new ladies collection, Petite Promesse. Little sister to the Promesse range, the Petite has the same interplay of oval and round shapes but in a mini format. £2,490; harrods.com

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POSSESSION OPEN BANGLE

The latest collection from Piaget will be coveted by many. Very much designed for the modern urban woman – both feminine and free-spirited – Possession includes rings, earrings and necklaces, but we are taken by this bangle, featuring white and gold diamonds. £8,800; harrods.com

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MOSAIC RUBY PENDANT

Now here’s one mosaic you really shouldn’t keep on your floor. Inspect this Fabergé pendant and you’ll discover invisibly set Mozambican rubies in 18-carat rose gold. The chain is adorned with rubies and white diamonds. Perhaps money can buy you love. £32,700; harrods.com

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GIFT GUIDE HARRODS

HUGO BOSS ■■

SLIM-FIT EVENING SUIT

Turn heads at every Christmas party wearing this slim-fit evening suit from Hugo Boss, exclusively available at Harrods. Consisting of a grey velvet, narrow-cut dinner jacket and trousers with pressed creases, the elegant two-piece is formal yet unstuffy. It’s perfect for the well-heeled man about town. Blazer £430; shirt, £159; harrods.com

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BURBERRY ■■

WEEKEND BAG

UBTECH ■■

ALPHA 1S HUMANOID ROBOT

MONTBLANC ■■

AUGMENTED PAPER HARRODS LTD EDITION

Whether it’s a business trip or some muchneeded time with the family, a weekend away is never far off. In which case, you need a suitable weekend bag to store your treasured possessions. Burberry (who else?) has designed a typically stylish, versatile travelling companion for all those excursions. £1,495; harrods.com

Be warned: this robot is probably smarter than you – and that can’t be good for the future of humanity. The Alpha 1S can be connected via Bluetooth to your computer or smartphone. It can sing, dance, read stories, practice yoga and demonstrate exercise moves. It also may steal your job one day. The chance is worth taking. £499; harrods.com

Analogue writing for a digital age: with Montblanc Augmented Paper, written notes can be transferred from paper to a mobile device simply by pressing a button. Combine the fluidity of a pen with the organisation and shareability of email. This specially designed workbook is available exclusively at Harrods. £590; harrods.com

CZECH & SPEAKE

DJI

PORSCHE DESIGN

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N0.88 COLOGNE SHAKER

Like the prohibition bars of old, No.88 takes its name from the address of Czech & Speake’s first showroom on Jermyn Street. Its signature scent was introduced back in 1981, and stills smells as fresh today thanks to its timeless notes of bergamot and sandalwood. This is a must for any gentleman’s Christmas stocking. £140; harrods.com

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PHANTOM 4 DRONE

And to think you used to associate ‘drone’ with your history teacher. The Phantom 4 comes with an excellent range of features, including multiple flight modes, a 4K camera and a max flight time of 28 minutes. ActiveTrack will follow your subject, just as in-built obstacle avoidance should ensure a safe flight path. £1,499; harrods.com

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GRAVITY ONE

From sunglasses to kitchens, Porsche Design’s prowess knows no bounds. Lately it has turned its hand to audio tech – including this, the Gravity One. The speaker projects 360-degree sound around the room, ensuring great quality regardless of where you’re sitting. Its battery can manage ten hours of playtime, too. £329; harrods.com


GIFT GUIDE HARRODS

VACHERON CONSTANTIN ■■

OVERSEAS CHRONOGRAPH

We may have voted to leave the EU but this is one Overseas product even Nigel Farage would embrace (but don’t let that put you off). The new version of Vacheron Constantin’s emblematic model comes with both leather and rubber straps, as well as a metal bracelet, to ensure versatility wherever your adventures take you. Style changes; quality remains. £24,700; harrods.com

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V IP EXP ERI EN CE S JANUARY – FEBRUARY 2017

Immerse yourself in the enchanting world of Amaluna with a VIP hospitality experience at the world-famous Royal Albert Hall

BOOK YOUR EXPERIENCE NOW royalalberthall.com


PROMOTION THE OPEN

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OPEN FOR BUSINESS

Whether you’re entertaining clients or enjoying it with family and friends, The Open’s official hospitality offers the best way to experience one of the sporting world’s greatest tournaments SINCE 1860, The Open Championship has cast a long and mesmerising spell over the golfing world. As the original and only major championship held outside of the United States, The Open is British golf’s historic backbone, threading its way through the generations to provide a link with the past, the present, and the future. Its champions over the past 156 years have weaved their names into sporting folklore, with their exploits spreading the word of the game around the world. And while the early winners, such as Tom Morris Snr, James Braid and Harry Vardon, were on the scene long before the invention of television, their names were just as famous as those of Tiger Woods, Rory McIlroy and Justin Rose are today – even without the benefit of the internet and social media.

From the ‘Duel in the Sun’ – Tom Watson’s infamous battle with Jack Nicklaus in 1977 – to this year’s battle between Stenson and Mickelson at Royal Troon, The Open has created some of the most memorable moments of the game. The 146th Open, at Royal Birkdale from 16-23 July 2017, is sure to be no different.

It you want to witness history in the making in comfort and style at one of the world’s greatest sporting events then consider The Open’s official hospitality

If you want to witness history in the making in comfort and style at one of the world’s greatest sporting events then consider the official hospitality packages. With these you can be right at the heart of the action, enjoy fast-track access, experience wonderful on-course locations and the finest hospitality from the moment you arrive. Whether you are hosting a major corporate event or an intimate gathering, you and your guests can enjoy more than ten hours of fully inclusive hospitality at The Open. H View the selection of hospitality experiences at TheOpen.com/ Hospitality or contact The Open’s official hospitality advisors on 0844 371 0883.

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Invest Your Time Wisely

Swiss watchmakers have been looking to the past with their latest models for a while now, but are the re-issues of classic styles worth investing in? ADRIAN HAILWOOD compares the old with the new 104

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WATCHES CLASSIC V CONTEMPORARY

IT SEEMS THAT Switzerland has been firmly in the grip of ‘re-issue mania’ for several years now. While it may cause concerns as to where new ideas will come from, it does allow us to play ‘compare and contrast’ with some of their vintage offerings and see whether the new versions are worthy successors or mere pastiche.

Rolex OLD: The ‘ugly duckling’ is a common phenomenon in vintage watch collecting; the watch from a respected brand that sold poorly on release and so has great scarcity value now. While far from ugly, the Rolex Daytona was not exactly the runaway success in the 1970s that you might expect it to have been. Stories abound of retailers refusing to discount Rolex’s time-only pieces but offering significant deals on Daytonas, especially the unpopular ‘exotic’ dial. Now almost any Rolex Daytona, so long as it is authentic, represents a serious chunk of cash; from £14,000 for a simple 6239 in fair condition to almost £1m for Eric Clapton’s 6263 Albino.

The new Rolex Daytona has a waiting list of ten years and an immediate profit of around £6,000 if you choose to flip it. It’s a great timepiece to invest in are pushing up to £30,000. The 30CH, the last manufacture calibre from the brand, represents particularly great value, with prices that are often below £3,000. NEW: While not a 2016 novelty, the Heritage Single Pusher Chronograph from the brand’s 180th anniversary in 2013 is a great reflection of the brand’s chronograph history. All the correct details are present including an enamel dial, blued steel hands and a red Roman numeral 12. It looks like the kind of vintage piece you wear with your fingers crossed that it won’t stop

or break during the day, but of course it functions with all the reliability of a modern production piece. While most of Longines’ current collection depreciates heavily in the secondary market, this is a piece that may just hold its value or creep up a little.

TAG Heuer OLD: The way the auction market is looking at the moment it seems that almost any watch with ‘Heuer’ rather than TAG on the dial was a good investment if you bought it at retail. For certain references, particularly the early Autavias, achieved prices are approaching ten times what they would have been only five years ago which demonstrates just how desperate collectors are to latch on to the next big thing. While a reference 2446 Autavia may be heading out of the reach of many collectors, there ▶ ◀ BACK TO THE FUTURE: [opposite] The 1970s Rolex Daytona 6239, a covetable collectors’ piece; ▼ [clockwise from below] the updated Daytona; Tag Heuer’s Monza; Longines’ classy calibre 13ZN.

NEW: 2016 saw Rolex carry its refreshment of the Daytona collection through to the steel model, creating reference 116500LN. The clarity of the dial design along with the crispness of the Cerachrom bezel won praise from the critics, but as the most affordable and wearable of the Daytona line, this one couldn’t really lose. We are back to the waiting list lengths of ten years ago with an immediate profit of around £6,000 if you choose to flip it. As more come into the market the re-sale prices will cool a little bit but this is still definitely a great timepiece to invest in.

PHOTOGRAPHS by (new Daytona) by Alain Costa

Longines OLD: Proof that not all collectors’ watches have to break the bank is provided by Longines. Despite its current position as Omega’s junior partner, the early years of the 20th century saw it positioned as a highly respected chronograph manufacturer. It is no surprise that, while most of its watch production is ignored, its early chronographs get watch buyers very excited. The Longines calibre 13ZN is widely recognised as a superb piece of engineering design and good examples

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WATCHES CLASSIC V CONTEMPORARY

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are there. In much the same way that a skilful caricature can appear truer than a portrait, Omega has kept the ‘Alpha’ hands and guard-free crown and opted for the ‘Lollipop’ seconds as the more distinctive of the two original possibilities. The result works well, being modern and relevant, with a hint of vintage about it. With an original 2998 almost impossible to acquire, and the tribute a limited edition, this should be a good buy for the future.

Breguet OLD: Compared to the likes of Patek Philippe, Breguet wrist watches at auction do not reflect the immense historical importance of the brand. This is as much due to availability, since the production volume of wrist watches was, until the 1980s, painfully small. Occasionally these do pop up and do well. This chronograph from 1938 was produced as the brand moved to establish itself as an aeronautical supplier with the help of the aircraft builder Louis Breguet. Small in size and with an unremarkable movement, this wellpreserved chronograph achieved £15,000 plus a premium based largely on its rarity.

▲ TIMELESS: [clockwise from aobve] Breguet’s new Tradition 7077BB, inspired by the brand’s Souscription pocket watches from 1796; Omega’s tribute to its 2998; a rare Breguet chronograph from 1938.

▶ is

still plenty of mileage in later examples and the Chronomatic models. Authentic pieces that are in good condition should be a solid investment as interest in vintage Heuer spreads beyond the die-hard fans. NEW: Across the range of Heuer models that are sending buyers into a frenzy, the Monza has yet to reach its true potential. This may be because the development of the Monza is not clear to understand. The original from 1976 was a special edition PVD Chronomatic Carrera, while the re-issues looked more like Cameros with a cushion-shaped case. The version that TAG Heuer released this year is an amalgamation of all the best bits, keeping the cushion case of the re-issue but reverting to the original PVD and red styling of the original. Strangely for such a hybrid, this one works; elevating the Monza line with the colourway it should always have had and in doing so, giving more credibility.

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Omega OLD: Compared to Rolex’s vintage chronographs, Omega’s Speedmaster collection seems grossly under-valued especially when you consider their NASA certification. The market does seem to be waking up at long last and good prices are being achieved for early and correct examples. While not the earliest Speedmaster, the reference 2998 was the first into space in 1962 on the wrist of Wally Schirra, an astronaut with the Mercury mission. A tropicaldialled example of this watch achieved a commendable $50,000 at Christies’ Speedmaster-only sale last year but I suspect prices will head steadily upwards. NEW: This year, Omega decided to take the 2998 and create a limited-edition tribute to it. Not a replica or a re-issue, as the dial is blue and there is luminous material in the bezel markings, but the key features

NEW: Almost as different as it is possible to be, the Breguet 7077 Tradition chronograph from this year’s Basel watch fair has a movement that is historic and futuristic and very, very clever. The Tradition line is inspired by Breguet’s Souscription pocket watches of 1796 with their simple, symmetrical movements but this latest offering is anything but simple. The power comes from different sources for different functions; the main hands are powered by a conventional spring barrel while the chronograph is driven by a tiny leaf spring. The watch runs at 3Hz while the chronograph runs at 5Hz, and so different materials are used for the two balance wheels to allow them to remain the same size. Such innovation is typical for a brand that has lodged between ten and 12 patents per year since 2000 and while the top-level watch market has cooled a little of late, this piece – especially as it is a chronograph – should be successful. H

Adrian Hailwood is director of Fellows Auctioneers. For more information and to view lots in upcoming auctions, please visit fellows.co.uk


REWARDS

Ready for the Next Round Wentworth is one of the finest golf and country clubs in the UK. After its recent acquisition by the Reignwood Group, BEN WINSTANLEY talks to chief executive Stephen Gibson about what’s to come

What makes Wentworth Club a worldclass golf complex? Wentworth’s been around for almost a hundred years, and has been considered one of the top golf clubs from the very beginning. It all started with Walter George Tarrant, founder of the estate, and we’re determined to carry on his vision for this place to be the premier private golf and country club. A lot of people will say that maybe Augusta or Pine Valley is the best course in the world, but what constitutes the best club starts with the membership and the best people wanting to join. Great people join great places, and this is certainly one of those. Most recently, we’ve also been able to add what the Reignwood Group brings to the table in association with its other ventures. It contributes, and will continue to contribute, to Wentworth something that no other club in the UK has to offer. How is Reignwood Group’s acquisition beginning to benefit members? Right now is possibly the most exciting time in the club’s history. There are so

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many changes going on: the clubhouse, the membership, the golf course. The amount of investment that Reignwood has poured into Wentworth to take it to the next level is absolutely fantastic, but one of the most significant additional benefits for members will be access to membership at the Ten Trinity Square project. When it opens next year, it is going to be one of the most exciting private members’ clubs to launch in London, so for Wentworth members to have the right to membership for a period of time is tremendous. Going forward, part of our membership for the future is that all members will have a way into Ten Trinity Square private club, which for anybody living and working in the City is massive.

The West Course is currently undergoing redevelopment. Can you talk us through the changes? Ernie Els, one of our favourite sons here at Wentworth, has been working alongside European Golf Design with a lot of involvement from a committee of players and Ryder Cup captains from the past. It’s

important to us that we have that advisory board to make sure everything we do on the West Course is respected by the players. The main changes will be regrassing all the greens, with consultation from Richard Harley who helped with the development of Augusta’s greens, plus hole reconstruction on eight, 11, 14, 15 and 16. We’re seeing it more as a restoration than a redesign. It’s looking at the principles of Harry Colt’s original design – how he wanted the game to be played and the strategy that he envisaged for the course – and moving it into the modern era. That’s

Right now is possibly the most exciting time in Wentworth’s history. There are so many changes going on: the clubhouse, the membership, the course


GOLF WENTWORTH

really the premise of what we’re trying to achieve. It is one of the most tinkered with, or upgraded golf courses in England but if you look at the top courses in the world who want to stay there, you have to keep going. If you just sit still, other people are going to surpass you. We’re also going to be the first course in England to put SubAir under the greens, which is a massive commitment to something that isn’t used that often in this country. Essentially, it just gives you more control over the putting surface by removing moisture from it but it’s basically sinking a million pounds into the dirt, in case you need to turn it on. That’s the price you have to pay, though, for putting real innovation into the course. It’s not just about design, it’s about quality and technology. We wanted to have that historic feel, but we need the technology in place so that when the big tournaments come round we have the best course that we can to offer. Development is well underway now, and you can see grass on the new greens.

What characterises the best golf courses in the world? At Wentworth, we want a golf course that is playable for 51 weeks of the year for our members to enjoy, and for the other week we want a course that is a real test for the professionals but is still enjoyable. It’s no good if those guys go away feeling like they don’t want to come back every year. All pros love going to Augusta – I mean who wouldn’t? But we want Wentworth to at the very least match the quality of that venue. What sets top venues apart is that eye on perfection. Our director of courses and grounds visited 18 golf courses, many of those in the top ten in the world, and we’ve taken lessons from each one. How do you become the best? By beating everybody else by 1% in every area. There’s some significant investment that we’re making for some very small marginal gains. Wentworth’s West Course is one of the most familiar golf courses in the world. What makes it so special? Many people grow up watching Wentworth on TV. I was the same: I aspired to play golf at Wentworth. It’s a bit like St Andrews: you look at that club as the ‘home of golf’,

and I would say that you look at Wentworth as the home of tournament golf, certainly in the UK. People do feel like they’re coming home when they play here – and the fact that it’s a proper members’ club, it isn’t stuffy or old fashioned, means that it’s also a very relaxed environment. I’d definitely say that the fact that 85% of our play has always been by members. You can turn up to Wentworth any day of the week and you’ll always be able to have a game with someone you know – and if you don’t, you’ll know them pretty soon because it’s a friendly place and a family club.

What would only the members know about the golf club? Wentworth is the birthplace of the very first Ryder Cup. In our committee minutes from 1926, there’s a note from our general committee to say that they’d written to the PGA to offer a trophy for this cup that was going to be played the following year. The PGA had written back to say: “Thank you very much for hosting the tournament between British and American professionals but, unfortunately, somebody has already donated a trophy – Samuel Ryder.” That is one of the things that internally is spoken about quite a lot, and is a big part of our heritage here. It’s one of those things that does give you a spine-tingling experience when you play the West Course: you’re walking in the footsteps of champions. How many of the members at Wentworth work in the City? I would say about 40% of membership comes from central and west London, and I would imagine quite a large proportion of those members also work in the City itself. On a Saturday morning it’s 35 minutes out here from Kensington so it’s no surprise it’s such a big catchment area for us, and because of that we have a massive tie to the City itself. A lot of our corporate members are City banks and major companies so we’ve always had a close connection there. Our association with Reignwood’s Ten Trinity Square will also give us the opportunity to have a club fitting facility and teaching facility in the City as well. We’re going to have a simulator in the hotel where people can play the West Course with one of our golf pros and

have a lesson at the same time. That’s just something a bit niche, a little bit different for the guys in the City who might have an hour after work but don’t have the opportunity to make it out to Wentworth. I don’t think there’s anywhere in the UK that really has that same kind of partnership – and will ensure those City connections only get stronger over time.

There was some negative press when Reignwood Group acquired the club. How are you reassuring members? We always had a great belief that this place is a sleeping giant and it really could be something extra special. The members had the same belief, it’s just really how they saw us going about it and whether the belief in the investment was there. I think when any new owner takes over a club, people are a little nervous and concerned as to what might happen. But when they start to see the investment come through, they start feeling more reassured about what their future might look like at the club. There’s a real buzz about the place right now. We were absolutely convinced that the right way forward for this club was what we were about to undertake: we had a lot of third-party endorsement from the European Tour, and from KPMG who did a study and survey on the club membership. We’d really done our homework this time and considered what kind of investment it was going to take to do it. Simply put, it’s coming up with the goods. H For more information, see wentworthclub.com

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REWARDS

It’s a New Dawn

Ready to escape the City? Of course you are. One Rolls-Royce Dawn plus one Cotswolds retreat should do the job, says MARK HEDLEY

PHOTOGRAPHS by Firstname Surname

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MOTORS ROLLS-ROYCE

PHOTOGRAPH by Mark Hedley

ROLLS-ROYCE DAWN Engine (ltr) 6.6 V12 0-62mph 4.9 secs ■■ Power (bhp) 563 @5,250rpm ■■ torque (NM) 780 @1,500rpm ■■ length 5.29 metres ■■ Price £318k (inc. vat) ■■ ■■

IN NEW YORK’S Upper East Side, they have a habit of turning the word ‘summer’ into a verb. And if you can afford an apartment in the Big Apple’s most prestigious zip code, the chances are you can also afford to summer in the Hamptons. The closest Londoners get to this is the weekly Friday night exodus from Chelsea to the Cotswolds. There’s a reason there’s one Daylesford organic farm shop on Pimlico Road and the other five minutes from Chipping Norton (the chocolate-box Gloucestershire village home to everyone from the Camerons to the Clarksons). Thirty miles to the southwest of this tourist-trap territory is an impressive development of lakeside homes called Watermark, which is about as close as you’ll get to the Hamptons this side of the Atlantic. Like many of its Stateside cousins, the houses at Watermark have light-timber cladding, vaulted ceilings and french doors that open onto large outdoor terraces – both waterside decks and bedroom balconies. Of course, there’s no ocean here – instead, a porcelain blue lake that is home to all kinds of wildlife, including a family of swans and signets which swim by looking for leftovers from your breakfast toast. The development is situated in a 40-square mile area of outstanding natural beauty known as the Cotswold Water Park – a haven for both water creatures and water sports. All properties are built with eco-friendly features, such as energyefficient heat pumps that provide filtered air heating and cooling to each home, and the houses are constructed using timber sourced from sustainably managed forests. The houses are available to rent or buy: we were just there for a weekend, but it’s easy to see why so many opt for a more permanent solution for their downtime – especially when you take into account that all owners at Watermark have access to the adjacent Four Pillars Hotel gym and spa as well as membership at nearby golf clubs, Wrag Barn and South Cerney. We stayed on the aptly named Summer Lake. True to its title, it even came bathed in warm sunshine (at least, it did for most of our stay – we were still in Britain, after all). This was just as well, as the car I was driving there was one that really comes into its own when the sky is as blue as its paint job.

The Rolls-Royce Dawn is the latest model from the historic marque – and arguably the best looking car it’s made since the Corniche IV back in the early 1990s. The name, though, harks back to the 1950s and the original Silver Dawn – there were only 28 of these built as a drophead, cementing their legacy as one of the most exclusive Rolls-Royces created. Beauty aside, the car’s sheer size is the first thing you’ll notice. On being delivered, my wife commented: “My God... it’s big, isn’t it?” (Sadly, not something I’m used to hearing too often.) There’s no doubt, at more than 17ft long, this car has real presence. One of the reasons for this lengthy expanse is to ensure its 2+2 configuration allows for four fully grown adults to actually fit in it. Driving out of town with the hood down, it’s astonishing how many eyebrows were raised. As I stopped to let a lady cross the road, she paused in front of the car and simply uttered, “Golly!”. Even the profanities become posher when you’re driving a Rolls-Royce. When in traffic, you do feel somewhat exposed. On the flipside, having the roof tucked away does allow people a snapshot of some of the finest marquetry ever executed inside a car. The woodwork throughout – especially on its yacht-like rear shelf – is quite simply a work of art. The finish is matte instead of gloss, making it feel sharp and contemporary, rather than the walnut dash of a 1990s Rover. Turn up the music, and you will drift into exhibitionist territory. The bass from the Roller’s bespoke sound system is beefy enough to rattle your fillings out. But for such an unapologetic car, it’s as refined as a bottle of 1982 Chateau Lafite. With the six-layer fabric top back up, ▶

Driving out of town in the Rolls-Royce Dawn, it’s astonishing how many eyebrows were raised. One lady paused while crossing the road, uttering ‘golly!’ 111

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MOTORS ROLLS-ROYCE

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◀ CALM AND COLLECTED: A Super Grand Hampton property on Summer Lake at the Watermark development in the Cotswolds.

▶ inside

is as silent as the Bodleian library. It’s the most quiet convertible ever made… The ride is exceptional: it’s less like driving, and more like being picked up and cradled by an invisible force. The Dawn also has highly intelligent technology working behind the scenes to make the ride even more effortless – including Satellite Aided Transmission where the car foretells which gear to select depending on the road layout ahead. It also has a night-time heatdetection system that picks up both human and animal heat signatures, and issues a warning to the driver of possible danger. It’s all so clever, it makes your head hurt.

In the most indulgent way, the Rolls-Royce Dawn distorts your view on the world: everything becomes so easy. Like having your own on-board lifehacker 112

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But then you remember you’re wafting along in the most luxurious car in the world, and that nothing really hurts. Thanks to writing hunchback over a computer for much of my adult life, my entire body pretty much suffers from RSI. But after a three-hour journey in the Dawn, there wasn’t an echo of backache. Even the tyres that connect the Rolls with the road have been engineered to help conjure up this magic-carpet effect. Although the engine talks in whispers, it doesn’t lack in grunt. The twin-turbo 6.6-litre V12 powertrain packs 563bhp – and will launch this 2.5-tonne car from 0-60mph in under five seconds. A staggering feat executed with the manners of a priest. In the most indulgent way, the Dawn distorts your view of the world: everything becomes so easy. It’s a bit like having your own on-board lifehacker. Need to close the car door? Why would you reach over and employ actual effort when you can just press a button? It’s raining outside? You need a golf umbrella, sir – and you’ll find it in the front fender recess. There’s a bump in the road? Not

for you, old bean. I shall absorb this as if your seat were made of marshmallow, and the bump were made of marshmallow – and your buttocks were also made of marshmallow. It brings a whole new dimension to ‘sweet ride’. Even the boot space is sumptuous, clothed in a deep-pile wool carpet. If I had to be thrown in a boot – à la Goodfellas – there could definitely be worse places to end up. Indeed, if it wasn’t for the luxury accommodation on offer at the Watermark, I’d have happily slept in the Dawn. Although, I’m not sure that’s quite the image Rolls-Royce is striving for. It was far more at home lording it up over the harem of luxury cars that were parked up on Watermark’s neighbouring driveways. If this is what’s it’s like to use ‘summer’ as a verb, then sign me up. H A three-bedroom Deckhouse at Watermark costs £625,000; a five-bedroom Super Grand is £875,000. For sales information, call 01285 869 031 or visit watermarkcotswolds.com. For rentals, call 01285 869 181 or visit watermarkholidays. com. For more information of the Rolls-Royce Dawn, visit rolls-roycemotorcars.com


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WINE CLARET

REWARDS

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2

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1

BROACHING CLARET 1 Les Tourelles De Longueville 2009, Pauillac: The over-achieving second wine of Pichon Baron. £27 a bottle 2 Château Gazin 2011, Pomerol: An archetypal pomerol – seductive and smooth. £37.50 a bottle PHOTOGRAPH by David Harrison

3 Château Haut Bergey 2000, Pessac Léognan: Full bodied with a silky texture. £33 a bottle 4 ‘G’ de Guinaudeau: Made by the owners of the legendary Château Lafleur in Pomerol. £17.50 a bottle For all wines, go to justerinis.com

On Red Alert

With Christmas around the corner, consider bolstering your bordeaux reserves with this flawless foursome 115

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A collection of 77 new luxury apartments & houses Situated in Zone 1, directly opposite Borough Underground Station for superb access across London 1 beds from £714,995, 2 beds from £949,995, 3 beds from £1,295,000

1/3rd already sold Book your appointment to view today brandonhouse@crestnicholson.com, 0800 088 6434 www.brandonhouseSE1.com London Bridge

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Borough

Train times taken from National Rail. Digital illustration is indicative only. Show Home photography. Pricing correct on 02.12.16.


PROMOTION YAMAHA

HEDGE

TIME FOR A TUNE-UP

The world’s most-advanced piano entertainment system, the Yamaha Disklavier Enspire, plays thousands of performances without you lifting a finger. It’s guaranteed to hit the right chord – literally DRIVEN BY A passion for music making and innovation, Yamaha has a proven and exceptional ability to blend traditional artisanship with state-of-the-art digital audio and music technology. This expertise comes together as never before in the revolutionary new Yamaha Disklavier Enspire – the world’s most advanced piano, and the ultimate in sophisticated home entertainment. Typical of Yamaha, the Enspire is a beautiful acoustic piano crafted from

The Enspire can play itself, record itself and be played remotely while networked with other Disklaviers around the world

the finest materials to deliver the brand’s characteristic rich sound, beloved of some of the world’s most discerning musicians. Personifying Yamaha’s pursuit of technological brilliance, however, the Enspire can also play itself, record itself and be played remotely while networked with other Disklaviers around the world. With access to 500 built-in songs and more than 6,000 performances that can be downloaded directly to the instrument, its easy-to-use and intuitive design means all you have to do is select whatever music suits your mood. From classical solo piano selections to your favourite pop songs on piano (accompanied by audio and vocals), wireless network connectivity allows for seamless control of any situation via your mobile device or computer – leaving you to relax at home, man the controls in the studio, or take care of front-of-house.

Accompanying the Enspire is Yamaha’s multi-award winning MusicCast wireless music system, which allows you to listen to music everywhere in your home and control it all in a single app. Unlike other conventional multiroom music solutions, MusicCast lets you choose the product that suits your style – whether that’s a wireless speaker, a soundbar, wireless hifi or even home theatre. Whichever room you want music in, Yamaha has the product to suit. Bluetooth, Airplay and wifi is built into every single product to connect easily and enjoy built-in music streaming services. Whether you’re listening or playing, the new Disklavier Enspire allows you to experience the future of the piano today. H

To arrange a private demonstration, please contact: colinsmithers@yamahamusiclondon.com For more information, see yamaha.com/dkv

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PROPERTY LONDON

REWARDS

A Touch of Providence

Nobody wants to stay grounded. Property developer Ballymore has released eight luxury apartments situated on the top three floors of Providence Tower. You could basically hang glide to work...

SETTLE DOWN IN the sky. An exclusive collection of eight luxury homes close to Canary Wharf has been released by property developer, Ballymore. The apartments – four of which are duplexes – are situated on the top three floors of Providence Tower: more than 40

All residents can enjoy first-class living with an exceptional standard of facilities, including a 24hour concierge service, a fitness centre and a spa

floors above the ground. The apartments comprise two bedrooms with up to 2100sq ft of living space and up to 115sq ft of external terrace space – you’ll certainly have room to stretch your legs. The open plan interior design is very much based around luxury elegance, something we can all get on board with. Floor-toceiling windows make the most of the panoramic views across the City: so don’t invite anybody who suffers from vertigo. Providence Tower is situated within the New Providence Wharf development, a well-established premium riverfront precinct complete with an already sizeable community. You won’t lack for neighbours. This development also includes a hotel, the Radisson Blu Edwardian and Ontario Tower, identified across the London skyline

by its blue light. Handy if your phone dies and you can’t find your way home. (Although a taxi might also suit.) All residents, current and future, can enjoy first-class living with an exceptional standard of facilities, including a 24-hour concierge and valet service, a fitness centre and luxury spa, as well as a sky lounge with further breathtaking views. The City can be reached within 12 minutes via Blackwall DLR station. Providence Tower is also close to London City Airport, and upon Crossrail’s completion Heathrow Airport will be a short commute away. No need to wait to move in – the apartments are ready for immediate inhabitation. It’s good to aim high. H Prices start at £1,475,000; providencetower.com

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Discover the new breed of watchmaker...

christopherward.co.uk


Beautiful. Ambitious. Ingenious. Thanks to its Calibre JJ04 movement – the work of our master watchmaker Johannes Jahnke – the C9 Moonphase is able to plot the orbit of the Moon with perfect accuracy. More remarkably, if kept wound, its nickelplated ‘Moon’ will travel across the watch’s dial for 128 years before it needs adjusting. Steel, 40mm. £1,295


HEDGE LEGEND DAVID TEPPER

E N D P L AY

HEDGE Legend # 1 1

D AV I D

T E P P E R

David Tepper

David Tepper is fearless in the face of risk, and it’s a quality that’s seen him rise to – and stay at – the top of his game, says SAFI THIND DAVID TEPPER, FOUNDER of Appaloosa Management, has brass balls. Literally. The ones in question are a pair of metal testicles given to him by an ex-colleague which he keeps on his desk and rubs when he needs luck. Why the polished metaphor? Because he goes after some of the riskiest investments in the world – distressed securities. Appaloosa, his $20bn hedge fund, has certainly succeeded where many others fail. Making a fortune from distressed securities is a haphazard occupation. Get it right and the rewards are huge. Get it wrong and you’re likely to lose your trousers. Tepper’s training in the art of distressed investment came at Goldman Sachs where he was hired as a lowly credit analyst in 1985. Very quickly Tepper made it to head trader on the bank’s then newly formed high yield desk. But, although he was earning good money for the bank, Tepper was passed over for promotion to partner – his boss was the future chief executive, Jon Corzine, with whom he had a strained relationship. Unhappy with the situation, he left Goldmans in 1992 and started Appaloosa the following year when it was initially known as a ‘junk bond boutique’. In the early years, Appaloosa’s rate of return was wildly uneven. But Tepper showed a tenacity that meant a bad year was usually

Tepper’s hedge fund has continued to grow thanks to his buccaneering approach. Between 2009-2016 he’s been the world’s highest hedge fund earner twice 122

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followed by a very good one. In 1998, for example, Appaloosa bought Russian debt just before the rouble collapsed, costing the fund hundreds of millions of dollars. Even as the market fell, Tepper kept buying the evercheaper bonds, and a few months later, his bet paid off and the fund went up 60%. In 2002, when the junk-bond market collapsed, Tepper lost 25%, but made up for it the following year, when bonds he had purchased in bankrupt companies went up 149%. The successes of 2003 made him a billionaire and the fund has continued growing ever since thanks to Tepper’s buccaneering approach. Between 2009 and 2016 he’s been the world’s highest hedge fund earner twice – in 2009 he bet on distressed financial stocks, making about $7bn by the end of the year, $4bn of which he pocketed, backing this up with a $2.2bn personal gain in 2012 – and has received numerous industry awards along the way. Tepper has also been a prominent contributor to philanthropy. Academia has been a big recipient – he donated $122m to Carnegie Mellon University’s business school where he studied – though he did get the school’s name changed to the David A Tepper School of Business in exchange. Despite the academic gifts, Tepper fits in at the other end of the successful hedge fund personality scale to cerebral types like Jim Simons or David Shaw. He has a preternatural self-confidence complimented by a jock attitude – something that didn’t go down very well at Goldman Sachs but seems to have worked exceptionally well for him in the junk bond markets. These days, Tepper’s fund moves across diverse investments but continues to be successful where others haven’t. He rounded off last year with some 9% returns – enormous in the current low-return environment. H

THE NUMBERS GAME ■■

$11.4bn David Tepper’s total wealth.

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27% Annualised returns since inception.

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$43.5m The cost of the house that

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$122m His personal donation

Tepper built in the Hamptons. to Carnegie Mellon University. ■■

$7.5bn The amount Tepper made Appaloosa Management with just one trade in 2009 – it gave him a personal pay-out of nearly $4bn.


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Profile for Twenty Two Media Group

Hedge 44 - The Luxury Travel Issue  

Hedge Magazine - Issue 44 - The Luxury Travel Issue

Hedge 44 - The Luxury Travel Issue  

Hedge Magazine - Issue 44 - The Luxury Travel Issue