Art Auction House Shares Sell-Out

Sotheby’s biggest shareholder has sold its entire stake in the auction house, a move that suggests it believes the booming art market has reached a peak, the Financial Times reports. Ariel Capital Management, a value investor, has sold its 12.3 percent stake in the art auction group. The investor first bought into Sotheby’s five years ago during a price-fixing scandal, when prices were low. Ariel said they still think very highly of the company and its management, they just don't think the stock is very cheap any more. Today Sotheby’s shares are at a six-year high, having risen 70 percent this year alone. Last month the group reported 2005 had been its best year in 15 years, with $513 million in revenue and a net income of $63 million, up 85 percent. The recent escalation in art prices has raised questions about how long the boom can be sustained. The biggest price hikes are in contemporary art and Asian art, where speculation appears to be creeping in. For the full story - click the title Irish Art