Looking Beyond Wine Risk-Adjusted Performance

Maurer, Frantz; Cardebat, Jean‐Marie; Jiao, Linda

doi:10.1017/jwe.2020.18

Cited by 6 publications

(5 citation statements)

References 74 publications

(127 reference statements)

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“…There is no consensus on the under or performance of wines compared to listed and unlisted shares. Indeed, the American and Bordeaux fine wine returns can be lower than the financial markets (Ashenfelter et al, 1995; Burton & Jacobsen, 2001; Haeger & Storchmann, 2006; Maurer et al, 2020), while they can sometimes be higher than those of stock markets (Masset & Weisskopf, 2015; Sanning et al, 2008). In addition, although two studies over short periods indicate lower wine returns compared to U.S. Treasury Bonds (Ashenfelter et al, 1995; Krasker, 1979), academic literature argues that fine wines outperform bonds.…”

Section: Co‐occurrence Analysis Of Abstract and Clustersmentioning

confidence: 99%

“…The academic literature indicates the positive effect of portfolio diversification by including wine. Thus, wine is a safe haven, that is, a hedging tool (or parachute) reducing the risk deriving from adverse movements of the markets, especially during the period of the pandemic crisis of COVID-19 (Baldi et al, 2010;Bouri, 2014Bouri, , 2015Bouri et al, 2018;Bouri & Roubaud, 2016;Jurevičienė & Jakavonytė, 2015;Masset & Maurer, 2021;Maurer et al, 2020;Samitas et al, 2022).…”

Section: Portfolio Diversificationmentioning

confidence: 99%

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Wine prices in economics: A bibliometric analysis

Le Fur,

Thelisson,

Guyottot

2023

Strategic Change

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This article presents a literature review and a bibliometric analysis of academic research on wine prices in economics. The study comprises a review of 180 articles published in journals between 1992 and 2022. Bibliometric and science mapping methods apply indicators identifying the most prominent journals, authors, countries, institutions, topics, most published and cited articles, co‐authorship, bibliographic coupling, cited references, and keywords. This approach highlights the importance of four clusters in the literature: determinants of the wine prices, demand and consumption of wine, fine wine as an alternative investment, and quality and brand reputation of Bordeaux wines. This study shows many areas for further research within and outside these clusters.

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Section: Co‐occurrence Analysis Of Abstract and Clustersmentioning

confidence: 99%

Section: Portfolio Diversificationmentioning

confidence: 99%

Wine prices in economics: A bibliometric analysis

Le Fur,

Thelisson,

Guyottot

2023

Strategic Change

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“…Their timing may prove prescient. Historically, demand for alternative investments increases during periods of high uncertainty (Amenc, Martellini, and Ziemann, 2009; Martin, 2010), and recent evidence suggests fine wines provide diversification benefits to an equity portfolio (Maurer, Cardebat, and Jiao, 2020). Yet, even as the market for fine-wine investment matures, basic questions about portfolio management remain unanswered.…”

Section: Introductionmentioning

confidence: 99%

Left, right, or both? Long-run returns from Bordeaux

Tolhurst

2022

J Wine Econ

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As the market for fine-wine investing matures, basic questions of portfolio strategy remain unexplored. I evaluate how adding fine wine from the superstar châteaux of Bordeaux's Right Bank might complement the traditional focus on the five first-growths of Bordeaux's Left Bank. Fundamentals for the Right Bank's superstars are attractive: they produce roughly an order of magnitude less, face different production conditions, and receive equally impressive critical reviews. However, they receive far less attention than their Left Bank counterparts. To examine returns over the long run, I hand-collected 10,885 prices for eight wines from an archive of 391 Sherry-Lehmann catalogs, a New York City retailer, which began at the end of Prohibition. Using these historical price records, I compare the real returns from investing in the five Premier Cru to a portfolio that adds three superstar châteaux from the Right Bank: Ausone, Cheval Blanc, and Petrus. I find the geometric-average annual return was 6.78% in real terms from 1938 to 2017 for the joint portfolio, less than 0.01% different, but with better risk-reward as measured by the Sharpe ratio. Additionally, I find the life cycle of aging is substantially different across the two Banks, which could provide further diversification benefits for the strategic investor.

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“…There are a few papers that relate to the present study. Notably, Maurer et al (2020) utilize time-varying copulas to examine the relation between wines and equities. Their framework can account for non-normality, but they only consider a short horizon (daily data over a period of seven years) and their methodology is not necessarily robust towards illiquidity.…”

Section: Introductionmentioning

confidence: 99%