Steven A. Cohen built a reputation as a fast trader with an uncanny ability to predict where stock prices are headed. He’s applying his investing style to an art collection that now accounts for about $1 billion of his $11 billion fortune.
Cohen is selling two paintings estimated at more than $65 million at New York auctions this month, according to people familiar with the matter, as the billionaire money manager is taking advantage of surging prices. The works are part of the bellwether semiannual auctions at Sotheby’s, Christie’s and Phillips that will target more than $2.1 billion in sales over 10 days starting Wednesday.
The 59-year-old Cohen regularly sells pieces from his collection, both privately and at auction, and buys new ones, according to dealers and advisers. One of the works he’s consigned, according to one of the people, is a punctured, egg- shaped Lucio Fontana canvas estimated at more than $25 million at Christie’s. The piece may smash an auction record for the Italian artist that was set just last month in London.
Warhol’s Mao
Cohen also is selling a Mao portrait by Andy Warhol at more than $40 million at Sotheby’s, or 40 times its last auction price 19 years ago, said two people who asked not to be named because the information is private. Both of Cohen’s works are marked as guaranteed in the auction catalogs, meaning he will get an undisclosed price regardless of what happens in the salesrooms.
“He is a trader by mentality,” said John Good, a private art dealer in New York who knows Cohen and his collection, having spent 13 years as director at Gagosian Gallery and three years at Christie’s private sales division.
The stakes are high for the auction houses: the sales are the art trade’s biggest test since the global stock market rout in August and September unnerved investors. To win consignments, the companies guaranteed about $1 billion of art to sellers, backing most of the works with their own money, a risky proposition should there be no takers.
Natural Evolution
Fontana’s 1964 “Concetto spaziale, La fine di Dio,” is offered at Christie’s postwar and contemporary evening sale on Nov. 10. Christie’s is financing the guarantee, according to the catalog. Warhol’s 1972 portrait of former Chinese leader Mao Zedong is for sale at Sotheby’s contemporary art evening auction on Nov. 11. An outside backer agreed to place an irrevocable bid for the work, according to Sotheby’s.
Jonathan Gasthalter, a spokesman for Cohen at Sard Verbinnen & Co., declined to comment on the sales. Sotheby’s and Christie’s declined to comment on the auction sellers.
“He used to collect modernism. Now he’s into classic postwar and contemporary,” Good said of Cohen. “That’s a natural evolution. On the high-ticket things, if he likes them, he keeps them. If he doesn’t, he sells them.”
New Approach
Cohen’s approach, setting records as a buyer and seller with a changing taste, is fairly new in the collecting world. Traditionally, collectors spent decades building their holdings with a mix of superior and mediocre works, and they rarely sold.
“They loved it. They lived with it,” said Wendy Cromwell, a New York-based art adviser. “That was the old-school way.”
An example of such a collection is on view at Sotheby’s, which is selling a 500-lot trove amassed by its former chairman A. Alfred Taubman, Cromwell said. “Masterworks,” the first sale from the collection, is on Wednesday.
New Record
Cohen’s style of collecting is different. In May, Cohen’s 1961 Jean Dubuffet painting “Paris Polka” fetched $24.8 million at Christie’s, more than three times the artist’s previous auction record of $7.4 million set six months earlier. A year ago, Cohen’s Franz Kline canvas, “King Oliver" (1958), fetched $26.5 million, also at Christie’s in New York, the second- highest price for the Abstract Expressionist painter.
The owner of Point 72 Asset Management, a family office that manages about $11 billion, in 2013 consigned a group of seven paintings to Sotheby’s. They tallied at least $77 million, led by Gerhard Richter’s 1986 abstract painting “A.B. Courbet" that fetched $26.5 million.
Cohen’s recent acquisitions include Alberto Giacometti’s 1950 painted-bronze sculpture “Chariot” that fetched $101 million at Sotheby’s in November 2014.
Fontana Record
Almost 7-feet-tall, “Mao” is one of 11 made in this height, according to Sotheby’s catalog. This painting fetched $1 million at Sotheby’s in 1996, when it last appeared at auction.
Fontana’s market has been on fire this year, surpassing the 2008 high when his works tallied $95.9 million at auction, according to research company Artprice.com. Last month in London, Sotheby’s and Christie’s sold 21 Fontana pieces for a total of 36.6 million pounds ($56.6 million). The artist’s auction record was established last month at Sotheby’s for a black egg canvas at $24.7 million.
It’s unclear how much Cohen paid for the Warhol and Fontana. Cohen bought “Mao” in a private transaction from Francois Pinault, the billionaire owner of Christie’s, in 2007. At Christie’s in 2006 another “Mao” painting from the same group fetched $17.4 million.
Cohen exemplifies a new breed of collectors who have a passion for art but also aren’t reluctant to switch up their holdings, Good said.
“A lot of people treat their art collections as one asset class and they trade within that asset class,” Good said. “If it’s not working for you anymore, why not turn it into cash and buy more art?”