Passion Play

In five short years, the price tag on Larry Sirolli's loft apartment in Manhattan has skyrocketed 70% But what's hanging inside his home represents his most impressive purchase: a late-1950s abstract expressionist painting by American artist Stephen Greene.

Sirolli purchased the piece at an auction in Chicago for little more than $1,000 in 1999. Today, he estimates it's worth $60,000 -- a whopping 5,900% gain.

No amateur to the art world, Sirolli, 47, boasts 23 years at Sotheby's and one year as owner of the New York City private-art dealership and consulting business Sirolli Fine Art, which has brought in sales of $1.3 million so far. However, his investment play is becoming more commonplace. Individuals who once focused solely on stocks and bonds are diversifying into so-called "passion investments" such as art, wine and even NASCAR.

This year, high-income families will place 22% of their assets in these alternative investments, according to Capgemini and Merrill Lynch, up from 10% in 2002. Experts say the appeal is both monetary and emotional. "Psychologically, you don't get that attached to bonds and shares," says Mahesh Kumar, author of Wine Investment for Portfolio Diversification. "But a 1982 Chateau Margaux -- people take pride in that." Investing in a Jeff Koons or a cabernet can be a gamble, however, so be sure to research and diversify. ...