Fine Art Market Attracting New Investors Thanks to Strong Returns

Investors in the art market will find a better rate of return than many other assets, according to Philip Hoffman, CEO of The Fine Art Fund Group, which is based in London. Hoffman said a long-term investor might achieve returns of five to eight percent on a portfolio of art.  The Fine Art Fund Group also participates in the art lending market, where returns are even higher, at seven to fifteen percent.  Hoffman expects his business to double or triple in the next few years, as more investors seek to diversify into alternative assets. The Fine Art Fund buys and sells about $10 million in art each week. TheStreet's Rhonda Schaffler has details from the Milken Institute's Global Conference in Los Angeles.