Investors are sitting on the most cash since 2020, according to a recent fund manager survey from Bank of America. That means a lot of investors are likely looking for somewhere safer to put that capital, especially with retail favorites like Tesla (TSLA), Microsoft (MSFT) and Apple (AAPL) all down for the year (the entirety of the Magnificent Seven is actually in the red year-to-date). At the same time, BlackRock (BLK) head Larry Fink is making headlines, warning that his clients are “more anxious about the economy than any time in recent memory.”
However, Fink and many other experts suggest that diversifying not just among a variety of stocks, but diversifying a portion of a portfolio into different asset classes could provide more potential stability. Fink wrote in his recent letter to shareholders that he now advocates a 50/30/20 model—allocating 20% to private assets. JP Morgan Asset Management (JPM) had actually stressed a similar point a few months ago in their 2025 outlook. Remarking on the increased democratization of alternative assets for both institutions and individuals, they wrote that the usual stock/bond “60/40” portfolio may be enhanced into one that also includes these alternative assets: a “50/30/20” portfolio.
Examining the field of alternative assets, one asset class has several interesting characteristics for diversification: fine art and collectibles. While Fink and the JP Morgan Asset Management outlook didn’t cite art specifically, Larry Fink himself is a top 200 art collector. He called art and property “the new gold” in a 2015 interview, and has been acquiring works behind the scenes for decades.
Fink is investing in art alongside other billionaire players and money managers, like Jeff Bezos, Marc Andreessen, and Steve Cohen (all of whom feature on the Top 200 collectors list). Cohen (of NY Mets ownership fame) has reportedly spent over $1 billion dollars building his collection; a 2023 Deloitte study estimated that ultra-high-net-worth individuals held over $2.1 trillion dollars in art and collectibles wealth, while predicting that number could exceed $2.8 trillion by 2026. At that point, this category could make up around 10% of the portfolios of these ultra-high-net-worth individuals.
Nowadays, not all players in the blue-chip art investing space are billionaires; Masterworks’ art investing platform has opened the asset class to all types of investors, without requiring millions of dollars or art expertise. Masterworks has over $1bn+ capital raised across 450+ works, acting as a one-stop-shop for art investing. Since its founding, Masterworks investors have realized annualized net returns like +17.6%, +17.8% and +21.5% (among assets held 1+ year, not including unsold), distributing back a total of over $60 million dollars, including principal, in investor proceeds across their 23 exits. For those interested in diversifying a slice of their portfolio into alternative assets, Masterworks’ website contains more information and background on their process.
Investing involves risk. Past performance not indicative of future returns. See Important Regulation A Disclosures at masterworks.com/cd.
ARTICLE DISCLOSURES:
TipRanks (the “Endorser”) receives cash compensation from Masterworks, LLC (“Masterworks”). At the time of publication the writer did not have a position in any of the securities mentioned in this article.
This is not an offer of a security or investment advice. Masterworks can only make and accept sales after an offering statement has been filed, and “qualified”, by the SEC. Any offers may be revoked before notice of qualification. Indications of interest involve no obligation.
Amount ‘distributed back’ represents the total liquidation proceeds distributed back to investors, net of all fees, expenses and proceeds reinvested in Masterworks offerings, of all works Masterworks has exited to date. This metric is not considered a presentation of performance but rather a mathematical figure that displays a platform metric on size, scale, and operation of the platform.
“Annualized net return” refers to the annualized internal rate of return net of all fees and expenses, calculated from the offering closing date to the date the sale is consummated.
Art sales price data is comparative only. Each painting is unique and historical data is not a direct proxy for any specific painting or investment. Data represents whole art not an investment into our offerings which includes fees and expenses. Any comparative images are not currently live offerings and are provided for educational purposes only.
Celebrities referenced are not investors in Masterworks Offerings. Their affiliation with artists is not an endorsement of Masterworks.
This communication is sent exclusively from Masterworks and is not endorsed by or affiliated with JP Morgan, Bank of America, or Deloitte. While Masterworks contributed to the Citi publication, it did not contribute to the creation of the referenced content from JP Morgan or Deloitte. Those reports are not intended to be regarded as investment advice, an offer, or solicitation of an offer to enter into any Masterworks offering.