The secret? – We build portfolios for our clients with wines that we would personally want to invest in. This philosophy focuses on our client’s very best interests and is the secret to our long-term relationship with them.
A managed portfolio will undoubtedly generate higher returns. From our trading partners in Bordeaux to Hong Kong – our fingers are always on the pulse – allowing us to identify opportunities when they arise. Equally as important is that we regularly monitor economic conditions that may impact our arena; ensuring your risk and exposure is kept to a minimum. Our focus on managing your portfolio to generate maximum returns takes precedence in our commitment to all clients.
Case Study: R Dennison
Mr Dennison became a client in 2007 after an unpleasant experience with another company. We inspected his stock and found that he had purchased a considerable amount of wines that were in poor condition and had been ‘re-packed’ into card-board boxes! It was obvious that his portfolio did not meet the ‘investment’ grade required and certainly did not warrant the premium he initially paid.
We advised Mr Dennison to sell the entire holding and re-invest the monies into wines recommended to achieve a greater return. The wines Mr Dennison ‘bought into’ not only out-performed his original portfolio, but it was down to Bacchus’ management and advise to sell again mid 2011 (securing yet further profit) and move his wealth into more resilient stock (carrying less risk) that proved vital in protecting his wealth and lowering his exposure to the down-turn in the ‘general’ wine market which occurred some months later.
The advice Mr Dennison received from Bacchus Vintners did not only increase his wealth considerably, but more importantly safeguarded the profit achieved and to date has significantly out-performed the ‘general’ market.
Case Study: R Monk
In mid 2008 Mr Monk contacted Bacchus Vintners and asked for advice regarding his wine investment portfolio. He had initially invested in 2002, however the company was no longer in business to offer assistance. Fortunately, he had a private storage account with London City Bond protecting his assets – Bacchus Vintners advise ALL our investors to have personal storage accounts to reduce risk leaving our clients in FULL control of their investments.
After valuing Mr Monk’s portfolio, we were able to determine which wines were likely to offer the best performance, and by developing a new investment strategy we were then able to target areas of the market likely to offer stronger growth over the mid-long term.
Bacchus Vintners always advise clients that they should be prepared to hold their wines for 5 years or more, taking profits as and when they arise.
As part of our strategy, Bacchus Vintners decided to embrace many wines from the 2008 Vintage – whilst many ‘experts’ in the market advised against this, we believed that this Vintage, and sold ‘En Primeur’ offered undoubted value. This proved to be a highly successful decision with many clients realising some incredible returns over a 2-3 yr period. In 2011, Bacchus Vintners advised that Mr Monk should consider selling much of his holding as prices seemed to be peaking – this was agreed and his wealth was then distributed in alternative areas that again offered more value. Many top ‘Right bank’ Chateaux were targeted………a decision that has proven fruitful during recent downturns in a number of areas within the market.
It is with this level of care and attention to our private clients investment portfolios that has allowed trust/confidence and strong long-term relationships to be built along the way.