Elite Advisers

Newsletter
Data at 29.06.2012
SICAV/Specialised Investment Fund under Luxembourg law reserved for informed investors
Performance (%)
Fund currency : EUR
Year
1st quarter
2nd quarter
2012
+ 0.20
+ 3.39
2011
+ 2.82
+ 6.76
3rd quarter
Annual
Performance
4th quarter
+ 3.59
+ 0.79
+ 1.20
+ 11.97
New
As from the 1st of July 2012, monthly valuation
Market comment
I would like to open this analysis with a rather solemn
reflection. For five years now, the economic environment has
been severely depressed. «Crisis» has become a buzzword,
a constant feature in the headlines of the world’s leading
newspapers. And so, I asked myself, «How can we deny such
a blatant truth?».
It was therefore with a measure of concern that I set out
for Geneva on the weekend of 13 May, fearing that despite
Christie’s inimitable catalogue, the spring auctions would see
a certain cautiousness with regard to prices — certainly not
a decline but perhaps greater selectivity vis-à-vis quality
and rarity.
Prior to the auction, I had foreseen to bid up to EUR 300,000
for the stainless steel Rolex reference 8171 in «new old stock»
condition — an amount
well above its estimated
sale price (EUR 165,000EUR 250,000 in view of its
superb condition) as well as
above the market valuation
for a well-preserved piece
(EUR 90,000, lot 266,
Precious Time collection).
Following a lengthy battle
in the auction room and
via telephone, the watch
finally went to a European
collector for EUR 452,500!
Some lots later, Aurel Bacs, International Director of the
watch department at Christie’s, brought out
another exquisite piece: an extremely rare
reference 2499 first series in pink gold, one
of only six known to exist. Once again, the
telephones were hopping and the
bidding war recommenced in the
auction room. Five minutes later,
the world record for a reference 2499 had
been smashed, with the piece selling for a
final price of EUR 2,122,500.
I began to muse again over the word «crisis», or rather (since
I certainly could not deny the crisis) over a more logical
interpretation of the word.
Net Asset Value
EUR
115.99
2012 Performance
+3.59 %
Assets Under Management EUR
15,051,710
(...cont’d)
There was barely time to draw breath before another truly
magnificent piece was presented. The watch in question
was a Patek Philippe two-crown «World Time» wristwatch
with a cloisonné enamel dial depicting a map of North
America. The lofty estimate (EUR 1,300,000) seemed a
difficult target to hit. Yet Aurel Bacs was unfazed, toying
with his potential buyers with great aplomb — after all,
when would there be another opportunity to acquire such
a rare and important watch? No sooner said than done:
after a 5-minute bidding war in the auction room and on
the phone lines, the hammer came down at EUR 2,300,000
and another record was overthrown. It was becoming ever
more difficult to contextualise that buzzword, «crisis».
However, the real record breaker came in the
form of a Breguet pocket watch of immense
historical importance: possibly the first
watch to make use of the celebrated
physical phenomenon of resonance.
The oldest of only three ever made,
this exceptional timepiece ended up
in the most appropriate and logical
place, being purchased by the Breguet
Museum for a sum of around
EUR 3,620,000.
18-carat yellow gold 1814 Breguet pocket watch
Back in Milan, with the auction over and following some
discussion with many industry insiders, I came upon the
most correct interpretation. Yes, there is a crisis — a grave
and tangible one.
Yet, the elevated prices paid for the rarest and best-preserved
watches prove once again that nowadays, watches, along
with other tangible goods, are viewed as genuine safe-haven
assets, assets for which the demand will always be much
greater than the supply.
Investors, collectors and dealers are increasingly interested
in acquiring rare, top-quality watches. The marked imbalance
of supply and demand will continue to push up valuations,
which will always be greater for top-quality and historically
significant watches.
Strategy for July 2012
Over the coming months, Precious Time will
continue to closely monitor the market for rare,
high-quality Rolex sports watches, focusing in
particular on Daytona Paul Newman watches —
now veritable cult objects coveted by all collectors.
Furthermore, Precious Time is currently in the
process of acquiring two watches of major historical
significance. Naturally, we will also be on the
lookout for any top-quality watches that may
come on the market.
Portfolio Allocation (%)
Rolex
Patek Philippe
Cartier
Vacheron Constantin
Omega
Audemars Piguet
Longines
Jaeger-LeCoultre
Gubelin
Breguet
Tudor
Eberhard
Tornek Raywille
Heuer
Zenith
Panerai
%
Nb. watches
38,2
24,4
19,3
7,8
2
1,8
1,8
1,6
1,6
0,2
0,2
0,2
0,2
0,2
0,2
0,2
172
110
87
35
9
8
8
7
7
1
1
1
1
1
1
1
450
Portfolio analysis
Precious Time purchased two outstanding watches at the
auctions
(01)
Dating from the 1970s, the first of these gems is a Patek
Philippe reference 3445(01) in white gold, complete with box
and paperwork and with the sticker still on the underside.
The second may well be the most beautiful Rolex Prince
Jump Hours(02) watch ever seen, in a rare two-toned white
gold and yellow gold version.
Without a doubt, however, our most important acquisition this
quarter was a collection of 12 Rolex sports watches, deemed one
of the greatest such collections in the world. See page hereafter.
(02)
In addition to this superlative Rolex collection, we also purchased an exquisite Patek
Philippe Calatrava reference 96 (03) in platinum, an exceptional Patek Philippe
reference 2476(04) in pink gold with downturned curved lugs, a Blancpain Tornek (05),
one of the rarest military watches in the world complete with certification issued by
Blancpain , and lastly, a singular example of a Jaeger-LeCoultre Deep Sea watch(06) .
(03)
(04)
Ref. 96
Ref. 2476
Patek Philippe
(05)
Blancpain Tornek
(06)
Jaeger Le Coultre
C ol lec t ion
Submariner
(10)
Ref. 1680
(08)
(07)
Ref. 6538
(08)
Ref. 6538
(09)
(11)
Ref. 5512
Among this collection, the two «Big Winding Crown»
Submariners (both reference 6538) are also worthy of note.
One(07) of these has the «depth in red» and comes from
the first series produced in 1956, while the other(08) is the
rare «Four Lines» version — a reference to the inscription
on the dial reading «officially certified chronometer».
However, the most striking feature of this watch is that it
boasts the most varied and complete set ever seen, not
only for this reference but also perhaps for any Rolex
sports watch of the period.
The same collection also gave us the Submariner
reference 5512(09) in its rarest of forms «the four lines
chapter ring underline» along with one of the first ever
gold Submariners, the reference 1680(10) «meters first»
watch from 1970 accompanied by its case, guarantee and
COSC certificate, an identical model with the same extras
but in stainless steel with a spectacular brown dial (11) and,
last but not least, possibly the most beautiful Freccione
ever to come on the market.
Besides, we also acquired three stainless steel Daytona
watches (12, 13, 14).
Paul Newman reference 6241 (the rarest reference)
Daytona Paul Newman
(12)
(13)
(14)
Sea-Dweller
The collection also includes two Rolex Sea Dwellers.
(15)
The first, the elusive Patent Pending Mk1(15), is one of only twelve
known of its kind and comes complete with its external and
internal box, its guarantee and the original COSC certificate. The
second(16) is an extremely rare model from the 1970s produced
for COMEX (Compagnie Maritime d’Expertise), the most famous
brand name from the world of underwater exploration. Here
too, the perfectly preserved watch comes not only with its internal and
external boxes, COSC certificate, original guarantee and tag, but also
with a Rolex certificate(17) testifying that it was created for COMEX.
(16)
(17)
Milgauss
A magnificent 1956 Milgauss reference 6541(18), accompanied
by its case and guarantee, completes the collection.
Considered by many to be the most important sports watch
produced by Rolex, this is the first ever Milgauss reference
characterised by a singular honeycomb dial and sweep seconds
hand in the form of a thunderbolt.
(18)
Ref. 6541
Freccione
A first series from 1969 in «new old stock» condition, the
Freccione (19) comes with one of the most complete sets ever
seen, even still boasting the Rolex sticker on the underside.
It is, unquestionably, the benchmark against which to measure
all other examples of the Rolex Freccione.
(19)
Why Precious Time ?
An attractive investment vehicle
Precious Time benefits from the status of Specialised Investment
Fund (SIF) under Luxembourg law, which permits investment in
new asset classes, in tangible and unusual assets such as rare and
collectors’ watches.
Twofold expertise of the fund manager
Alfredo Paramico, a renowned collector, applies his investment
experience and his expertise in watches to the management of
Precious Time with a view to obtaining optimum returns.
Committee of Experts
Consisting of Michel Stasser and Nicolas Maboussin, the Committee
of Experts assists the General Partner in evaluating potential
investments.
Open-ended fund
The fund’s duration is not limited in time, thus avoiding the pitfalls
associated with fixed-term investment management.
Active management
The fund manager actively manages purchases and sales on the basis
of his knowledge and the opportunities presented by the market.
An innovative diversification tool
Precious Time is suitable for both defensive and dynamic
allocations. It can help reduce a portfolio’s risk/return ratio or
increase its investment profile.
Potential for high yields
With increasing global demand for these rare and exceptional items,
the outlook for long-term yields is high at around 15% per year,
coupled with low volatility.
Experienced co-founders
Miriam Mascherin and Michel Tamisier have more than twenty years of
experience in the financial world. Specialising in the creation of niche,
elite products in order to meet the requirements of a clientele looking
for excellence and exclusivity, they launched the Passion Investment®
concept, offering a refreshing change from the intangibility and
complexity that is often associated with the world of finance.
Key elements
Launch date :
October 2010
ISIN Code :
LU0566795539
Bloomberg Ticker :
ELPRTCP LX
Fund Manager :
Alfredo Paramico
A monthly net asset value :
The valuation is carried out
every month on the basis of
4 international transaction
prices taken from 2 auction
houses and 2 watch
merchants selected for their
market size, their experience
and their good repute.
Subscription :
It is possible to invest
in several ways:
- directly
- via a management
mandate
- or through an
insurance company
Subscription and
redemption in kind :
Subject to the manager’s
approval, subscriptions
and redemptions can
be made in kind.
Recommended
investment period :
3 to 5 years
Allocation of income :
Accumulation
Financial year end :
31 December
Auditors :
Deloitte
Law firm :
Allen & Overy
Insurer :
Lloyd’s International
Custodian :
Caceis
Storage :
Geneva Free Ports
Subscription and
redemption fee :
0 - 4 % maximum negotiable
Management fee :
2.5% per year
Performance fee :
20% if performance exceeds
5% with a High Watermark
Precious Ti
me
received the
Award for
the most
original Fund
by the Belgian
publication
MoneyTalk
ELITE ADVISERS S.A. 5 Allée Scheffer ◆ L-2520 Luxembourg ◆ T : +(352) 26 25 99 84 ◆ F : +(352) 26 25 99 85
Past performances are no guarantee to future performances and these may vary over time. Internal sources