Alternative Investment

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Wine Spectator: Do Wine Investment Funds Deliver?

September 16, 2022

Wine investment funds are having a moment—again. After the collapse of several such funds a decade ago, triggered by the abrupt Chinese retreat from the luxury wine market, they are again coming on strong. While their methods differ, all wine funds project a common message: It’s smart to augment your traditional portfolio of stocks and bonds with an alternative investment in ageworthy wine.

“You are looking for a low-volatility asset that is uncorrelated to the rest of the economy, and that’s what wine is,” said Tom Gearing, co-founder of London-based wine investment fund Cult Wine. Case in point: When the stock market plunged during the 2008 financial crisis, investment-grade wine prices barely budged. So far in 2022, wine is again ignoring stocks: The Liv-ex 1000, a composite of the most widely traded investment-grade wines, is up 8.6%, while the S&P 500 is down 16%, as of Sept. 1. Wine Spectator has the full story.

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Tagged : wine investment funds, Wine Spectator

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