The fund buys top wines - wines 91% top red Bordeaux, stores them to profit from price increases, but also trades actively the bid/ask spreads on such wines.
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| A SQUARE :: 10May07 The Vintage Wine Fund |
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Category
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Wine Investing
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Faculty
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Paolo Cristofolini
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Expertise
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Wine Investing
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Author
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Sona Blessing
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The fund's trading activity is executed using a unique web-based screen that posts bid and ask prices for the wines traded, updated live. The fund acts as a market maker, like a principal trading firm, as opposed to most others who limit their intervention to agency or brokerage intermediation. Such trading activity, brings 5-6% per annum additional return over and above the passive price appreciation of the stock
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