Amma Asset Management
The Argyle Prima© 1.20ct Fancy Red Pear Shaped Diamond
Gross Return: 1.6x , 38% IRR
Asset Management For Financial Advisors & Institutional Investors
From inception in 2008, the principles of Amma Asset Management have exclusively dealt with coloured diamonds as an alternative asset class. Due to their rarity and scarcity combined with a general opacity and inefficiency in the pricing, these precious stones have seen a strong demand and increase in value over time, hence proving themselves to be an interesting addition to a wealth portfolio. Moving forward with the launch of Fund V, Amma Asset Management will be adding Burmese Rubies and Kashmir Sapphires to the portfolio of precious stones.
The fund is only open to sophisticated high net worth investors.
Fancy Coloured Diamonds As An Alternative Asset
Each year, out of 80 million carats of rough diamonds mined only 0.001% are considered fancy coloured amounting to approximately 80 – 100 carats representing roughly 50 stones.
Although the market data on coloured diamonds is opaque, industry experts estimate the annual market size to be $750 million - $1 billion.
Increases in the price of the rarest coloured diamonds are attracting investors as a hard asset and an inflation resistant alternative investment.
Coloured diamonds include yellow, which is the most common, through to orange, green, pink, blue, purple and the rarest of all, red.
Of these colours, each is further classified by its intensity and depth of colour, the best of which is fancy intense to fancy vivid. Amma Asset Management only invests in stones of fancy intense to fancy vivid colour saturation.
Burmese Rubies As An Alternative Investment
In the Mogok region of Myanmar, formerly known as Burma, you will find rubies of the highest quality. They are typically bluish-red in colour and combine a unique fluorescence with the presence of tiny inclusions that scatter light and make facets shine with a bright red gleam. Especially precious and rare are rubies known as pigeon-blood red in colour, which are the finest and most valuable of gemstones. These exceptional peculiarities along with decreasing production regularly result in stones from Burma achieving record prices.
The most expensive ruby ever sold at auction was a 25.59ct Burmese ruby named the Sunrise Ruby which achieved US$30 million at Sotheby’s Geneva, in 2015.
Kashmir Sapphires As A Wealth Management Alternative Investment
True Kashmir sapphires are amongst the rarest and most scarcely mined gemstones on earth. They display a blue colour that is deeply saturated and bright, with a velvety transparency, caused by tiny inclusions scattering light within the stone.
The best quality sapphires uniquely possess a vivid, fully saturated blue colour and the most coveted is known as “royal blue.”
Their extreme rarity is due to the very short period of time over which these gemstones were mined from the original deposit, known as the “Old Mine”. Alas only a few sapphires originating from later mines could compare to the quality of the "Old Mine" sapphires.
Nowadays, only very few truly high-quality Kashmir gemstones are available on the market. It is the uniqueness of their appearance combined with their rarity which make Kashmir sapphires so highly desirable.
The famous ‘Jewel of Kashmir’, a 27.68 carat sapphire was sold at auction in 2015 at Sotheby’s in Hong Kong for a record per carat price of US$242,145.
What People Are Saying
“… The fund attracting ultra-high net worth investors and institutions and projecting 20-25 per cent annual increase, operates on three levels. The first is arbitrage and short-term trading. The second is medium-term strategy aimed at improving the value of the stone, usually involving subtle repolishing or waiting to find a match to create a pair (a pair of 5ct heart shaped yellow diamonds can demand a 45 per cent increase per carat over a similar single 5ct diamond). The third is ‘hold’ - keeping a stone as a longer-term proposition.”
— Vivienne Becker, FT How to Spend It
“The Coloured Diamond Fund produced impressive returns with the additional attraction that they were not correlated to those of traditional mainstream asset classes.”
- An Investor
“As the Vice President of Investments for The Commercial Bank of Qatar, I advise private banking clients throughout the region on investments considered to be advantageous. For over 10 years, a number of our clients have invested in Fancy Coloured Diamond Funds. The Commercial Bank of Qatar is delighted to continue its relationship with Philip and Mahyar and recommend their funds to it’s private banking clients..”
— Hassan Al Haikey, SVP - Head of Investment & Wealth Management, Commercial Bank of Qatar
“The funds principles are in no way novices in buying and selling coloured diamonds. They actually launched another fund, Codium Fund, in September 2008, just before the U.S. economic collapse, with a few million dollars from investors who had used them to locate stones in the past. Baldwin told RDR that within its first 18 months the fund delivered 12 percent return on their money. He considers that a pretty good return since it came during a time when hedge funds were scrambling not to shut down as the financial crisis hit Wall Street .”
— Teri Buhl, Rapaport Diamond Report
Disclaimer
Please read this disclaimer carefully as access to further information pertaining to Amma Asset Management and the fund/s managed, is on the basis that you agree, understand and acknowledge all of the following:
The information contained on this website is not intended as an offer or solicitation with respect to the purchase or sale of any security. This website is not intended for sharing or distribution in the United States, except to persons who are “qualified purchasers” (as defined in the United States Investment Company Act of 1940, as amended) and “accredited investors” (as defined in Rule 501(a) under the Securities Act). Past performance is no guarantee of future performance. Nothing contained herein is, or should be relied upon as, a promise or representation as to the future performance of the Fund. Statements, estimates and projections with respect to such future performance set forth herein are based upon assumptions made by the administrator or the Investment Manager which may or may not prove to be correct. No representation is made as to the accuracy of such statements, estimates or projections.
