If you were to research Adam Sender back only a decade ago, you would have discovered that he was one of the more successful hedge fund managers around. He was running the fund that generated a very nice profit for himself and for his clients, many who took their money and put it right back to work for them. Sender had his eye on a bigger prize however, wanting to take those profits and explode their growth in a reasonable amount of time. The story of what Sender did next may never be duplicated again because of the sheer volume of work and profits he achieved in that short period of time.
Sender decided to take some of his profits from the hedge fund and buy Contemporary art. When he began shopping around, it became quite evident that he was not doing to have as easy a go at it like he first thought. He found out that the masters were commanding millions of dollars for their best pieces, and he realized he could not make much profit if he was going to focus he time on buying from Warhol and other great artists. This is where the story goes from one extreme to another, as Sender realizes he has to find another way if he is going to really make some serious money.
The point that changed everything for Adam Sender happened when he began considering looking at the best works of some artists who were right there on the verge of being the next big artists. These lesser-known artists were making spectacular works that were just not getting the attention of the bigger artists. Sender saw a great opportunity here because their paintings would eventually go up in value despite what the market was dictating at any given time. Sender could gobble up those pieces for $100,000 on average and just wait to see when the market corrected itself.
To prove his theory, Sender (LinkedIn)
decided to sell off 40 of the pieces in 2006 at auction. he was correct with his assumption, as the pieces sold for $20 million dollars. He put his plan into high gear and continued to buy up these paintings when he could. Today Sender has a collection of 400 pieces from a wide variety of more than 120 different artists. He contacted Sotheby’s auction house to sell off the entire collection as he is making his departure from collecting art as he finally did with his hedge fund. The auction house is expecting that the entire lot of paintings will take the better part of a year and a half to sell, but in the end Adam Sender will walk away having sold them all for $70 million dollars.