Connecticut Firm Sees Value In Classic Cars

Apr 15 2014 | 2:32pm ET

Greenwich, Conn.-based Classic Auto Funds is launching several investment partnerships using collectable classic cars as the hard asset.

CAF said that as a result of growing overseas demand coupled with the limited supply of unique older vehicles, the returns on classic car investments have consistently outperformed the S&P 500, and even gold over the past 10 years.

"Many investors are recognizing the rising returns in specific classic cars as a low-risk asset," said Robert Minnick, senior managing partner of CAF, in a statement. "But they do not have the expertise to buy the right cars, nor do they wish to store and maintain them. We're providing the investment vehicle for any individual who wants to own a piece of an Italian sports car, German sedan, or American muscle car as part of their financial portfolio."

Like fine art or wine investors, CAF operates by acquiring, storing, maintaining and then selling classic cars for its fund stakeholders. The first fund—the CAF/1: The Italian Restoration Fund—has already launched. CAF's restoration team is currently hard at work refurbishing a 1971 Ferrari Dino 246 GT, a 1964 Ferrari 330 2+2, and a 1964 Maserati Mistral 3.5.

CAF also plans on having additional benefits for its members and fund investors by providing insider access to a wide range of car rallies, vintage racing, concours car shows and other special events that support the classic car lifestyle.

"Regardless of your net worth, it takes time to become an insider," said Michael Crenshaw, CAF executive editor and special projects manger, in a statement. "CAF will provide a concierge-like service for members who want to enjoy their investments as a lifestyle and culture."

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