ART AS AN ASSET CLASS Including fine art in your investment portfolio provides diversification and allows for the potential to maximize your returns and lower overall risk. WHY ISN’T EVERYONE INVESTING IN ART? The barriers of entry are high and opaque. Throughout the years, success in the art markets has been associated with the high net worth crowd. Successfully procuring a high-end collection requires large amounts of capital and deep industry knowledge. To bridge this gap, LocalPaper has teamed up with Lio Malca to OFFER a turnkey solution for sophisticated investors seeking exposure to the Contemporary blue-chip art market When you invest in LocalPaper’s art offerings, rest assured that industry experts have carried out due diligence to ensure artwork authenticity and ownership recognition. We have also secured third-party appraisals, market comparables, insurance, and art storage.
THE ART MARKET When comparing the two, it is evident that the art market has outperformed the S&P 500 significantly over the past 20 years. ARTPRICE 100 INDEX VS S&P 500 SINCE 2000 Fine Art offers a competitive return relative to other tangible assets. According to Citibank’s Art Market Report, the contemporary art market has produced an annualized return of 7.5% over the past 30 years. Meanwhile, other traditional asset classes such as developed investment grade fixed income and high yield fixed income have returned 6.5% and 8.1%, respectively. Art’s low correlation to equities provides for a valuable and healthy portfolio diversification. FINE ART’S CORRELATION WITH OTHER ASSET CLASSES Notably, the art market’s historical performance is more closely correlated to that of cash (.34) than any other asset class. Moreover, it shows low or even inverse correlations with other asset classes, including the fixed income asset classes, whose return profile was similar.
ABOUT THE EXPERT LIO MALCA INVEST DIRECTLY IN A COLLECTION OF BLUE-CHIP ARTWORKS CURATED AND MANAGED BY A LEADING, VISIONARY ART COLLECTOR AND DEALER $200M+ IN ART SALES & PURCHASES 30+ YEARS IN THE GLOBAL ART MARKET 2,000+ WORKS IN THE MALCA COLLECTION WHO IS LIO MALCA? Lio Malca is an art collector, gallerist and hotelier with projects and businesses in New York (USA), Ibiza (Spain) and Tulum (Mexico). In the early 1990s, Mr. Malca showed interest in young artists who were involved in the New York cultural scene. He was especially passionate about artists who pushed the limits of high and low art. Throughout the 1990s, Mr. Malca continued to invest in emerging art markets. Since then, Mr. Malca has expanded his interests as a collector and surrealist thinker, following his intuition and using his personal taste as a guide, as well as evaluating market conditions. Mr. Malca’s collection is centered around the acquisition of works that defy the established historic narratives of high art. He always intends to blur the boundaries between the academic and institutional, and the urban and popular. He was an early investor in and promotor of Basquiat’s work when Basquiat was only recognized by smaller circles in the art world. Mr. Malca was also an early collector of artists such as Keith Haring and Kenny Scharf, both iconic figures of the street art and contemporary art movements. He was a consistent supporter of their emerging art markets. Later, he began collecting works from Lowbrow artists such as Mark Ryden and Marion Peck. KENNY SCHARF EXHIBITION, LA NAVE SALINAS BY LIO MALCA, 2019 He continues to collect from artists that have continued the legacy of Pop Art, such as KAWS. Mr. Malca’s collection has evolved. He has acquired works from Latin American, African and European artists, such as Jacob El Hanani from Morocco and Zilvinas Kempinas from Lithuania. Since 2002, Mr. Malca has also been collecting contemporary art from Asian artists. He has acquired works by artists such as Hiroshi Sugimoto, Keiichi Tanaami, Nobuyoshi Araki, and Yue Minjun. As a collector, Mr. Malca’s artistic inclinations have grown in accordance with the contemporary avant-garde. Recently, he has become interested in artists who incorporate new technology into their work, such as Brody Condon, Joanie Lemercier, Marco Brambilla, and Quayola. While valuing technological developments in the art world, Mr. Malca maintains an appreciation for 20th century artists already held in high regard, such as the Italian-Mexican surrealist Pedro Friedeberg. KEITH HARING EXHIBITION, LA NAVE SALINAS BY LIO MALCA, 2017 Lio Malca is not only an art collector. He is committed to creating spaces and projects where he can show his collection to the public. He has a passion for promoting curatorial projects, supporting artists directly, and working closely with established art dealers, galleries, and museums around the world. Mr. Malca deeply believes in the idea that art brings magic and meaning to life. His personal projects have the unique ability to generate accessible spaces where he is able to show the works in his collection to the public. He has a gallery in New York, a boutique hotel in Tulum, and a contemporary art foundation in Ibiza. Mr. Malca’s collection is managed at the Lio Malca Gallery in New York. From there, he has organized exhibitions such as In your Face, where Keith Haring, Kenny Scharf, and Jean- Michel Basquiat’s works were exhibited, and Joga Bonito, exhibiting works by Vik Muniz. Mr. Malca has strongly supported Muniz’s career from the beginning, as he has done with other artists. In 2014, Mr. Malca opened Casa Malca in Tulum, Mexico. Casa Malca is a world-renowned boutique luxury hotel where design and art envelop guests in a magical experience. Lio Malca’s exhibition space/hotel, casa malca, tulum Part of the Malca collection is exhibited in Casa Malca. The works are distributed organically around the property, displayed in several indoor and outdoor spaces. Casa Malca defines a unique concept in which guests can enjoy nature and the exquisite pleasures of the hotel, while also experiencing and living with works of art worthy of being in a museum. In 2015, Mr. Malca established a non-profit foundation in Ibiza, Spain called Fundación La Nave Salinas. The foundation was created to showcase contemporary art and give back to the community. La Nave Salinas is situated in an old salt warehouse located in the salt pans of Ibiza, Spain. The place has a commanding exhibition space of more than 300 square-meters and 8- meter-high ceilings. La Nave Salinas has housed impressive art installations, from world renowned artists like Kaws, Marco Brambilla, Keith Haring, Bill Viola and Kenny Scharf. Lio Malca’s exhibition space, La Nave Salinas, Ibiza Every year, the Foundation develops an ambitious curatorial project that includes an educational program, offering guided tours of the exhibition space and teaching workshops for local schools. These activities aim to bring contemporary art closer to people of all ages. They are offered free of charge, a principle that sets The Foundation apart from many of the cultural projects on the island. In 2020, Lio and Isaac Malca, his nephew, founded The Art Lodge, an invitation-only residency program that invites artists to spend time in the heart of the Tulum Jungle. The Art Lodge is founded on the premise that giving artists the opportunity to work in an environment surrounded by nature inspires them to create beautiful and interesting works. Mr. Malca decided to embark on this project because he is convinced that in order to stay current, it is important to work with emerging artists. Mr. Malca’s projects continue to evolve, change, and grow, all while maintaining the Malca essence. He creatively continues to work on new projects and to expand current projects. As his collection continues to grow, Mr. Malca always stays true to the impulses of his intuition. Read More Read Less