Masterworks Looks To Redefine Investing With Blue Chip Art

Access to data revolutionized how investors approached the stock market. Masterworks' team of experts, led by a Harvard data scientist, are now on a mission to democratize the lucrative realm of blue chip art. The asset class has been a top performing asset for decades, outpacing the S&P 500 by more than two to one over the past 27 years. 

The company has created a first-of-its-kind platform that allows anyone to invest in fractional shares of paintings from artists like Banksy, Picasso and Basquiat. 

To date, Masterworks has over $750 million in assets under management, and report to be on pace to hit $1 billion by the end of 2023. 

In addition, Masterworks recently launched a fund-like product called the “diversified art portfolio”, which allows accredited investors to invest in a pool of 60 to 80 of these high momentum artworks. 

Unlocking Hidden “Alpha” In The Art Market

Masterworks spent thousands of man hours and millions of dollars creating a proprietary database designed to help investors find “alpha” in the art market, and less than 3% of all artworks pass their rigorous criteria. Once they find a high momentum piece, the company negotiates the purchase and files the painting with the SEC under regulation A. 

Masterworks handles the entire process – from finding the artwork to securely storing it in a warehouse – saving potential investors the hassle of learning about art, scouring galleries or dealing with logistical concerns.

Investors are reportedly earning double digit annualized returns.

With a database holding over 5 million auction records and more than 50 million data points on 60,000+ artists drawn from archives dating back 50 years, Masterworks' team of experts identifies quality paintings that hold the potential for impressive returns.

Recently, a group of Masterworks members were reportedly able to collect a 15.4% net return in just 36 days on a sculpture – representing a 325% return on a net annualized basis. 

While it’s not common for Masterworks to get an exit that fast, the last three paintings the company sold in 2022 reportedly delivered 10.4%, 13.9% and 35% in annualized returns.

Masterworks does charge fees to manage this process, but those net annualized returns are reported after taking out the fees.

Get In On Art With This Exclusive Offer

While Masterworks continuously adds new paintings every week, the strong investor demand often leads to offerings selling out within minutes. However, you can skip the waitlist by using this exclusive link.  

Once you're in you can see what artwork is available and start building a masterful portfolio.

Featured image courtesy of Masterworks.

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