Unicorns are an asset class –
launch announcement SF50 index 04th of August 2022
The supercar market is currently both, booming and boiling. Some say that the bubble can burst every day, some say the “not so super rare” but still limited edition supercars will be hit with 20-30% loss but the super rare units will not be affected and the next group believes that a new asset class is just about to be born and everything that is significant, vintage, modern and limited will see further increase in value in the coming weeks, months and years.
To be able to navigate in the unregulated market of supercars, both modern and vintage, you need to classify cars based on their significance, market demand, and investment outlook.
The SF50 Index delivers a very sharp investment intelligence tool for the modern and vintage supercar as an asset class. Based on the experience of our own sales, research, and our extensive network of suppliers, buyers, collectors, family offices, and investment companies we have curated a selection of the most significant 50 unicorns build between 1960 and 2019.
Based on the SF50 index we will launch an extended version, SF100_index that will include another 50 units from the period of 1950 to 2022, today. But this is the music of the future….
Based on our best knowledge we estimate that the trading volume, and the total purchase value of all transactions globally in 2021 to have reached 25.000 Million USD. Not a small amount for an unregulated market where the options and opportunities to buy “off-market” seem endless but at the same time, only well-established auction houses and a handful of experts worldwide are really able to provide an experienced collector with unicorns that he can not find anywhere else.
Let us have a look at the different rating categories we have set in our SF50_index:
This category is basically reserved for creme de la creme, the most significant cars with the highest value and demand that are considered to be in that position for years or even decades. Cars like the Ferrari 250 GTO or the McLaren F1 represent a massive market capitalization based on the produced units and the volume. We will provide a market forecast so it will be very interesting to see which cars that are currently placed one or two categories lower than SF50_AAA will make their way to this top-notch category within the next 1-2 years.
The best chances to qualify and develop an SF50_AAA rating have some units that are currently ranked directly below that collection of “holy grails” or the so-called “holy trinity” which consists
of McLaren F1, Porsche GT1, and CLK GTR, all of them clearly being a part of SF50_AAA.
A good example and a very capable candidate in the SF50_AA group is the Ferrari F50, where we have seen and been able to participate in some unicorn transactions in the last months and years. You can clearly see that especially very low mileage examples and/or off-range color units have doubled in value since 2018.
Ferrari F40 is a good example of this category. Porsche Carrera GT, too. Both, but also others in that category have the potential to climb up and increase both, their rating and market capitalization within the next couple of years. We think that in both categories it is very important to differentiate between different asset classes within the same car and model. Yeah!
A Series 1 ( Lexan / slider windows ) F40 is one of only 55 units ever produced and is a completely different type of cake ( and asset grade ) than an F40 Series 1.5 (noncat/non adjust ) with around 300 units ever produced and especially compared to the least “rare” specification with a catalytic converter, Series 2, with roughly 1000 units that left the production in Maranello.
The same is true for the Carrera GT, where we have clearly different types of assets comparing just for example a well enjoyed US spec in GT-silver with terracotta interior and 30.000 miles on the odometer with a paint to sample unit in pearl white with black interior, EU spec and 1000km from new. All F40 and CGT owners that own one of the mentioned “less desirable” units, please accept my apologies, because you own a masterpiece of automobile history, and your car is one of the most 50 significant cars ever produced in the last 60 years.
The “B-Category” is by no means anything negative. We just see significantly lower demand and ready-buyers here compared to the A, AA, and tripe A categories. The upside of this category is the big mid- and long-term potential that all of the cars in the B, BB, and BBB areas have. Both, as an investment and in their appreciating increase of demand and significance, there is limited supply and increasing demand, and the really good units become more and more rare and super rare. Good examples of this category are the Jaguar XJ220 and the Diablo SV.
Double B unites a great price and periodic range. Our index is based on our perception of the market and does not want to be a benchmark for everyone. We see big potential for cars like
the AMG SL65 Black Series, a low mileage BMW e46 M3 CSL, or the fabulous Porsche 991 GT2RS. These cars are (very) undervalued cars in our opinion. Especially the 991 GT2RS with “Weissach Package” trim is a car that was actually produced in similar numbers
( however without a limited edition badge ) compared to the Porsche 991R that you find one category above ( SF50_B ) and which is currently trending towards SF50_A. According to our knowledge around 1500 units of the 991 GT2RS have been delivered worldwide, roughly ⅔ of them being the “Weissach Package”. Compare for yourself with 991 units (991R ) 918 units (918) and 1948 units ( 991 Speedster ). Sooner or later we will see a bigger hype once people notice it.
We are 100% confident that the 991 GT2RS will further appreciate in value and demand and this is true for both, “non-Weissach” and “Weissach package” units, delivery mileage or driven and enjoyed on a regular basis.
Triple B represents the bottom line of the index and of the value/unit ratio. The cars with the lowest demand and the biggest potential to increase in value. The cars with the highest production numbers out of all unicorns listed in the SF50_index. The biggest potential and the lowest entry ticket to the SF50 Index Club. We think that low mileage, high spec examples of the BMW M5 E39 and of the BMW e60 M5 & BMW e63 M6 with manual gearbox (which was only delivered to the US ) paired with the glorious 5.0 V10 engine will see a steep increase in value and this is also true for the first Audi RS4, Type B5, equipped with the legendary 2.7 V6 Biturbo engine. Can you imagine there is a car in SF50_BBB with 701 units ever produced that will cost in the range of 40-80k USD and will appreciate and become much more collectible very soon?
Based on current sales results, both off- and on-market we reserve the right to de-list cars with the SF50_BBB rating from the SF50_index if we feel that the current outlook is “down” not only for the short-term outlook but also for the mid-term.
The SF50_index is updated on a monthly basis.
If a car will get de-listed we will announce this and publish an official press release explaining our decision. At the same time, we will announce a replacement for the model that we have removed from the SF50 index and publish an official press release explaining the decision and our view on the investment potential of the new SF50 index member, both, short- and long-term.
By launching this index we are setting new industry standards for the secondary market and providing swiss investment intelligence based on data that was not available before.
SF50 index is the first step to a market regulation for the vintage & modern supercar sector which enables to provide sufficient data for a quick purchase decision.
This is a new approach and a huge value delivery for collectors, family offices, auction houses, private and commercial investors, and buyers that can make decisions quickly and firmly based on facts and intelligence.
After creating the SF50 index, we are proud and at the same time, we feel that this is just the beginning. The hardest part was selecting the “right” 50 cars to start with and then evaluating all available on-market data, and compare it with off-market / secondary market data insights from our network, and then creating the list with an appropriate rating system, sell-through rate, demand, and market capitalization. We feel that the upcoming SF100 index will really be “complete” in terms that we do not spend days and weeks discussing which car will be part of it or not, as was the case for the SF50 index. At the same time, we will distillate the results of the SF50 index into a Top5 or Top10 selection that will just be a collection of the best-performing assets of the SF50 index. For now, we work on establishing a new approach in an unregulated market and this is mainly building cooperation with the most knowledgeable and most professional players in the market to make it more transparent and sustainable for everyone participating.
Our goal is to deliver data and analysis for every significant vintage and modern supercar, worldwide. This is an optional addition to the customer experience of our current and new clients but at the same time, it delivers insights that provide very valuable information for every professional player, investor, auction house, or professional consultant engaged in blue-chip Supercars, also known as Unicorns.
If you feel that this approach resonates with you, please feel free to contact us and let us know your thoughts, ideas, and questions.
We are happy to announce that we will publish the first SF50_index on the 4th of August 2022 and the index and a detailed report will be updated on a monthly basis for subscribers only.
If you would like to get access to all details of the index including:
please send us an application via email to: firstname.lastname@example.org to receive further information.
Please note that all 50 units will be published within the next two months, unit by unit, day by day, week by week on our Blog: https://fsc24.ch/category/sf50-world-index/
and we are happy to share a lot of information publicly in order to provide more insights for everyone in the market. At the same time, the full scale of information, intelligence, and insights will be available either via a single report or monthly subscription only.
Please let us know your thoughts in the comments below or send us an email. We are looking forward to it.