Have you heard of this hedge fund dedicated exclusively to Hermès bags?

Investments aren’t just stocks or mutual funds anymore, now, even luxury items like Hermès bags are making the cut. The prices of these iconic bags have skyrocketed over time and can fluctuate like any other asset, turning them into a surprisingly clever investment. So much so that there’s now an entire hedge fund dedicated exclusively to trading luxury handbags.

From luxury to liquidity: How Hermès Bags became investment assets and a dedicated hedge fund

Hermès and Kelly handbags are increasingly being treated as alternative investment assets. The idea is simple: Investors pool funds, which a firm then uses to purchase authentic bags. These bags are carefully stored and insured, and later sold when their value appreciates, allowing investors to earn a potential profit. This approach combines luxury collectibles with financial strategy, making high-end fashion an investment.

According to a business magazine, reports suggest that the first ever hedge fund set up by former Blackstone executive Dana Auslander raised $1 million in May. A whopping 34% return was seen in the bags making it the ultimate star of the show. And all that within a 43-day average resale timeline amidst overwhelming demand.

Seeing this profit another hedge fund was set up and it raised a stunning amount of $2 million. And the credit of its popularity goes to the people since everything happened through word of mouth and no ads or any kinds of marketing was involved in the same. 

How does the fund work?

The fund operates through two main divisions to streamline purchases. The first focuses on classic colours like black, beige, brown, blue, and geranium: these bags sell quickly across online and physical marketplaces, offering fast resales. The second division specializes in the rarest models, sourced from auctions and luxury resellers, targeting high-value, hard-to-find pieces.

What so special about Hermès?

The main reason Hermès bags enjoy such high popularity and market status is because of their rarity. Production of certain models is deliberately limited to boost demand, following the brand’s principle of scarcity. As a result, the resale market thrives, and used Birkin bags, are often sold for more than their original retail price.

So, have you ever considered turning a Hermès bag into your ultimate investment?

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