An Investment With (Six) Strings Attached

Tuesday, October 7, 2008| by Will Chen

Anchorage Capital Partners, a UK based hedge fund management firm, is planning to launch The Guitar Fund in 2009.  The $100 Million USD fund will invest in the "rare and vintage guitar market".  The idea is to loosely follow the "42 Index", an index created by Vintage Guitar magazine in 1991 which tracks the vintage guitar market and has demonstrated a conceptualized average annual return of over 31%.

The fund will also provide a lending strategy allowing investors to borrow the instruments as well as lending the instruments out to well-known musicians to increased perceived market value.

An advisory board of guitar experts will help guide the fund and currently includes Elliott Randall of Steely Dan fame.

The catch? Currently, the fund is still searching for a lead investor and initial shares will likely cost $5 to $10 million a piece.

Oh well, guess I'll wait for the "B" class shares...

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