Vintage guitar hedge fund set to launch

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stratton
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Vintage guitar hedge fund set to launch

Post by stratton »

For all you alternative asset class junkies!

Vintage guitar hedge fund set to launch
According to several financial media sources, Anchorage Capital, a London investment firm, is expected to launch the Guitar Fund. Set up as a hedge fund, the Guitar Fund will seek investment returns by buying rare and vintage electric and acoustic guitars (steel-string and classical), plus mandolins, banjos and amps.

And get this, investors in the fund will also have the opportunity to actually play the guitars they invest in and take them home if they wish. Also, the fund plans to lend guitars out to well-known musicians for tours, recording and other events, which would enhance memorabilia value of the assets, ahem, guitars.

The basis for the fund’s idea is Vintage Guitar magazine’s “42 Guitar Index,” created in 1991 to track prices of vintage guitars. The index has demonstrated an average annual return of over 31% without experiencing a single down year.
Paul
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Rob5TCP
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Post by Rob5TCP »

As usual, past performance is NO guarantee of future results. Besides, if you have a lot of money, this could be fun (plus how many funds let you play with the investments) -
Providing your prepared to possible lose your entire investment (or much of it to fees anyway).
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stratton
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Post by stratton »

There's supposedly 8 or 10 wine hedge funds. One of them even has a list of what they have for "investments." No amounts listed for each.

I'm suprised some large boutique wine importers hasn't set one up in addition to their existing wine-of-the-month clubs. The fees could be lucrative and it might give them a source for rarer wines long term without having to carry them on inventory. Provided they were willing to pay for them at "market" rates from the fund. There are obvious conflict of interest issues here.

Paul
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gatorman
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Post by gatorman »

Perhaps the investors in the guitar hedge fund would also like to invest in the new Lladro Figurine Hedge Fund I am thinking about starting as a means to diversify their investment?
gatorman
yobria
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Post by yobria »

Funny. If I'm going to invest in something beautiful that's only going to grow in value with inflation, I want it in my house where I can enjoy it!

Nick
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mas
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Post by mas »

It seems that there is not a lot of capacity for this fund.
How many truly worthwhile vintage guitars can there be (42)? Once the fund has bought all of them at inflated prices, will they close the fund, or will new investors essentially dilute the existing fund when the managers buy less well know vintage guitars.
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stratton
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Post by stratton »

mas wrote:It seems that there is not a lot of capacity for this fund.
How many truly worthwhile vintage guitars can there be (42)? Once the fund has bought all of them at inflated prices, will they close the fund, or will new investors essentially dilute the existing fund when the managers buy less well know vintage guitars.
It's starting with $55 million.

Read the article and the comments. There appear to be a fair amount of $50K guitars. Paul Allen will probably (?) be an investor considering he collected enough stuff to start the Experience Music Project

Paul
MTWC
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Post by MTWC »

I guess these hedge fund crooks really don't have anything to make money now.

I am a guitar player/mania but I would never throw money in this stupid scam.

It's so stupid that it's not even funny.

Why don't they just open a guitar shop and charge for membership (ER)?

These so-called "highly educated" breeds have much lower standard than I would expected.

What's next?

The guitar string fund to hedge rising metal cost?
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Ted Valentine
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Post by Ted Valentine »

Who knew my Martin (http://www.martinguitar.com/) would be the best performer in my portfolio this year?
Although our intellect always longs for clarity and certainty, our nature often finds uncertainty fascinating.
WildDog
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Post by WildDog »

Not a surprise.

vintage guitar prices have gone thru the roof in the last 3 years.

The new Strats and Les Pauls in the 70's and 80's were highly undesirable. Today they are "vintage" and very expensive.

I wonder if you can short the fund?
muddlehead
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Post by muddlehead »

have to sell shares in my wood tennis racket fund for this.
neubie
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Post by neubie »

Barring the fact that this seems to be a case where the future returns have no possible way of keeping pace with the past...

...as a musician, this makes me angry. Great instruments are meant to be played by players, not owned by collectors. While this fund might specialize in only the very high-end, it's not terribly hard to foresee the trickle-down effects. Speculators driving up the price of the tools of the trade of starving musicians isn't a great thing, in my book.
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Jethro2007
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Post by Jethro2007 »

Hey all,

Feast yer pixels on the base of my tonal experience...

1978s best...

The amp is late 1980s...

The craftsmanship produced during the 70s to 80s at times, far surpasses what is produced by the factory and is marketed, today...under same names...
And you can still find some sweet guitars out there new.. but, they are probably the higher end, Signature series...and may cost $4-6k...yikes.

God Bless Les Paul, Leo Fender and James Marshall...
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dave.d
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Post by dave.d »

This reminds me of nisiprius' idea for a currency fund. Betcha the trustee gets loaner and jam-out privileges on the "fund assets."
Value-based allocation.
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Jethro2007
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Post by Jethro2007 »

Hey all,

Would that be considered dividends or capital gains???

P.S. God bless Orville Gibson...
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Tall Grass
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Re: Vintage guitar hedge fund set to launch

Post by Tall Grass »

stratton wrote:For all you alternative asset class junkies!

Vintage guitar hedge fund set to launch
According to several financial media sources, Anchorage Capital, a London investment firm, is expected to launch the Guitar Fund. Set up as a hedge fund, the Guitar Fund will seek investment returns by buying rare and vintage electric and acoustic guitars (steel-string and classical), plus mandolins, banjos and amps.

And get this, investors in the fund will also have the opportunity to actually play the guitars they invest in and take them home if they wish. Also, the fund plans to lend guitars out to well-known musicians for tours, recording and other events, which would enhance memorabilia value of the assets, ahem, guitars.

The basis for the fund’s idea is Vintage Guitar magazine’s “42 Guitar Index,” created in 1991 to track prices of vintage guitars. The index has demonstrated an average annual return of over 31% without experiencing a single down year.
Paul
Sounds like fun! I would like to have an interest in, and play, one of Stevie Ray Vaughn's old Stratocasters.

Unfortunately, I lost everything in the Beanie Baby bust a few years back... :(
"A wise man should have money in his head, but not in his heart." - Jonathan Swift
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