Amphora Portfolio Management

Fine Wine Investment Advisory Firm of the Year - UK

The best way to think about Amphora Portfolio Management is as a Private Client Stockbroker whose investment advice is denominated in the Fine Wine market. Fine Wine improves over time.

When we meet a new investor our first questions are predominantly about risk, because understanding the concept of risk underpins each and every investment process:

   > How long is the investment period?

   > Where would wine sit in an overall investment portfolio?

   > What is the risk appetite?

When we know the answer to these and other such questions we can build a portfolio accordingly.

What most people fail to understand is that the Fine Wine market is a bit like a mini version of a stock market. There is no homogeneity. There are lots of different producers from many different regions, and they have produced wines over a great many vintages (different years).

Like stocks and sectors, these wines do not all move up and down at the same time. It is our job to try and ensure that our clients’ portfolios are exposed to wines with the potential for maximum price appreciation, and to avoid those with the biggest downside threat.

Fine Wine prices are determined by a variety of different variables, from year of production where climatic considerations play a huge part, to producer’s brand power, critics’ scores, and so on.

Since it is impossible to assess the fundamental value of wine (there is no cash flow, it pays no dividends), we analyse relative value through inputting six weighted variables into a proprietary algorithm. Having a clear picture of relative value is vital to ascertain whether a 98 point-scoring Lafite from an off vintage is cheaper than a 100 point-scoring Mission Haut Brion from an on vintage.

We now have a 5 year track record to be justifiably proud of.

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