The Birkin fund cashing in on the Hermès luxury-resale market
Mint · list.metadata.agency ·
Luxus, an investment fund devoted to exclusive Hermès bags, returned 24%, but the luxury-goods market remains risky.
Investors have looked to capitalize on the rising prices of hard-to-find Rolex watches and rare French wine. A new fund offers the prospect of profiting by flipping exclusive Hermès handbags.
Luxus, a New York-based asset-management firm, recently closed the first of three funds. The $1 million fund netted a nearly 24% return on several-dozen bags over a 15-month span.
The firm’s founder, Dana Auslander, knew that Hermes, which only sells its renowned Birkin and Kelly bags through its boutiques and asks customers not to resell its products, wouldn’t sell her the handbags directly. She instead purchases them from resellers on the secondary market and then resells them herself through auction houses and other channels.