Alternative Investment in Fine Wine
|Author:||Bc. Eduard Tisoň|
|Year:||2018 - summer|
|Leaders:|| prof. PhDr. Petr Teplý Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||The goal of this thesis is to examine diversification opportunities and relative
investment performance of fine wine over several different periods. We found
that fine wine indices have higher risk-adjusted returns than stocks in the
most of ours periods and that cheaper fine wines performed substantially
better than expensive ones. However, over the periods of financial crisis, fine
wine had a strong correlation to major stock indices and lost a significant
part of its value. Finally, since fine wine did not show any evidence of
exposure to stock markets over the recent period, we concluded that fine
wine can bring substantial diversification benefits, which we illustrated in
the case of anti-cyclical and pro-cyclical portfolio.