WineFi Weekly

Welcome to the tenth edition of WineFi Weekly👋 
📅 May 28th 2024

Interested in building a fine wine portfolio? Click here to book a call.

The Wine Syndicate

The first portfolio is nearly here, and it’s looking fizzy🍾

The Wine Syndicate will allow investors to access thematic portfolios without having to buy the entire underlying basket outright. These wines will be sourced by our expert investment committee, and backed by cutting edge analytics.

If you are interested in learning more, please sign up for early access at www.syndicate.wine

WineFi <> The Tech Business Podcast

In The Tech Business Podcast serial entrepreneur and sales expert Paul Essery explores how tech businesses develop and grow.

Our CEO Callum recently joined Paul to discuss building WineFi, making wine investing more accessible, and using tech to enable and enhance the process!

Click here to listen on Spotify.

Wine as an asset class: The Data

Part 1: Sharpe Ratios

We recently welcomed our new Head of Data and Analytics Aaran Daniel to the team, and it would be an understatement to say he’s got off to a flying start.

Aaran’s first step has been to use a pool of pricing data for 8000 high liquidity wines to compare wine to traditional assets. You can see the Sharpe Ratio Comparison below.

For the uninitiated, the Sharpe Ratio describes how much excess return you receive for each additional unit of risk you assume. A higher ratio implies a higher investment return compared to the amount of risk of the investment (the higher the better)

The table above shows Fine Wine outperforming traditional assets across all time periods.

In simple terms this means Fine Wine will give you higher returns when compared to how much risk you take on from the asset.

This is in large part due to the comparative low volatility of fine wine returns. The returns on this basket of 8000 wines are strong, but comparable to traditional assets, the volatility however is in a completely different ballpark.

Fine Wine outperforms all traditional assets but the S&P500 in terms of returns, and displays a lower volatility than Gold - historically regarded as a ‘safe haven’ asset in uncertain markets.

This is all before we even account for portfolio selection. The basket used for the Fine Wine figures are 8000 wines selected purely based on liquidity criteria. Combining this with our Investment Committee's stock picking knowledge, and our ability to source wines at market low, at scale, helps add to the compelling narrative of wine as an asset class.

Stay tuned in the coming weeks for more data insights.