Other Wine Investments

Buying wine directly and storing it for years is not the only way to make money from wine. Entrepreneurs have seen the investment possibilities of wine, and have set up investment funds which operate in a similar manner to mutual funds. In addition some wine companies have financed themselves through Initial Publics Offerings (IPOs), which enables investors to invest in them in the stock market.

Investment Funds

Investment Funds need a lot of research. They are similar to mutual funds with investors pooling money, and a manager buying, storing and then selling top flight wines, typically following similar strategies to those outlined on this web-site. Due to their size they claim that they negotiate low acquisition costs and ensure that they receive the maximum for the wine on resale by selling the wine globally to the hottest market (often the US). They are lightly regulated, with little disclosure, typically high fees and high minimum investments. There have been recent cases of fraud in a couple of funds and a Winevestor should invest very carefully.

Note also that all of these funds are either setup in England or are offshore. There are currently no wine funds for the US. This is mainly due to the fact that regulation would be tough, and no-one has wanted to take that on yet.

Below is a list of some of the better known wine investment funds

• European Wine Investment Fund (Dumbarton Group).
  US, Min Investment - ?, Inception Date – not available yet
  Web-site not available
  New fund setting up to invest in wineries in Bordeaux and Tuscany. In the middle of raising $200 million.
• Vintage Wine Fund (OWC Asset Management)
  Cayman, Min Investment – €100,000, Inception Date – 02/20/2003
  www.vintagewinefund.com
  The fund has a clear website, with the key information readily available. It invests directly in wine. The fund returned 11.18% in 2005 and 23.97% in 2006. It is also regulated by the FSA. 
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