If you're getting frustrated with the yo-yo effect in the stock market lately, how about investing in something a little more consistent and sexier, like classic cars. A Swiss-based asset management firm, the Classic Car Fund, is seeking to profit from rising prices for collectable cars. According to Hagerty's Cars That Matter, the "Blue Chip" Index that averages the values of 25 of the most sought-after collectible automobiles of the post-war era, reports an increase of 61% from August 2007 to September 2011.
The Classic Car Fund aims is to make a return of 17 percent a year by buying and selling a variety of investment-grade classics, ranging from prewar Bugattis to postwar Pontiac muscle cars, its manager Filippo Pignatti said. "We've used the model of an art fund, everyone knows what a classic car is worth. The skill is to know when to buy them and when to sell them."
In addition, some of the Classic Cars held in the portfolio of the Fund may be lent to museums, film studios, private exhibitions, etc. The income Investors are watching to see if the funds can succeed in a market that can be as risky as alternative investments in art, whiskey and wine...some of our most favorite things.
More information about the Classic Car Fund can be found on the company's website.