On Wednesday the 29th of February, the Stamford CFA Society was privileged to host Tim Clew and Brian Mota from The Wine Trust Investment Partners, L.P. to present a night of wine tasting and discussion. The night began with a presentation focusing on wine as an investment. This is the fundamental concept on which the Wine Trust was developed. Infrequently thought of as an investment instrument, wine can actually be traded on organized exchanges and is done so at a volume of $5 – $10 billion annually.
Tim and Brian co-founded The Wine Trust in 2009 to take advantage of this market for “investment grade wine.” Unlike a majority of wine found at your local wine store, investment grade wine has a finite supply with limited production quantities that is traded similarly to a commodity with a price based upon supply and demand. This type of wine is typically from the Bordeaux region of France, but is traded all over the world with the largest end markets in New York, Hong Kong, London, and other parts of Europe.
Investment grade wine has provided highly attractive returns to investors with a risk adjusted return that frequently exceeds that of other investment instruments such as oil, commodities, emerging markets, bonds, and general equities. Additionally, returns on wine have low correlations with other investment assets, adding a diversification benefit to investing in wine. Many of the wine enthusiasts and investment professionals alike were engaged in discussion combining knowledge of both wines and investing.
The lively discussion was then followed by a wine tasting of some of the investment grade wines that are traded by the Wine Trust. The attendees sampled wines from Château Lascombes, Château d’Armailhac, and Château Le Bon Pasteur, all highly regarded wine château in Bordeaux. The evening continued with more wine and networking between the presenters and the more than forty members and guests of the Stamford CFA Society that attended the successful event. The CFA Society wishes to thank the presenters and attendees for making the night such an enjoyable occasion.