October 26, 2020 SVC 0

Our investment approach at SVC

At SVC we approach the art of premium whisky investing in a unique way. We all know that in this economic climate new and exciting bottles become available on an almost weekly basis, so making sure that we have enough liquidity to be able to purchase well-priced bottles is one of the most important aspects of what we do.

We break our investment strategy and portfolio into 3 categories:

  1. Rare and collectibles
  2. Liquid investments
  3. Wildcards 

“Rare and collectibles” are the backbone of what we do. We are always on the lookout for proven bottles that guarantee return, but staying liquid and having capital to invest is key to be able to have access to these bottles (as they could become available at any moment). Being so close to the industry is invaluable to us, as we have access to this premium category of bottles (Springbank Millennium Collection, Bowmore Blacks, Macallan Fine & Rares, Hanyu card series), either from existing distribution channels or collectors, where we have built relationships for many years. We’re dedicated whisky people who invest in whisky, not investment people, stepping into whisky. The rare and collectible category of our portfolio is aimed at the long game of our investment plan, so having a second smaller part of our portfolio as “liquid investments” is something we find key in our portfolio.

There are some bottles in our inventory that some may question why they are in a premium whisky portfolio at all, example of this being the Ardbeg Dark Cove Feis Isle release. The truth is these types of bottles in the industry are priceless at times. Our “liquid investments” portfolio are quick moving bottles, with high returns relative to the price of the bottle. These returns can generate rapid capital for our portfolio, which can then be used to purchase some of the more rare and collectible bottles.  At SVC we don’t turn a blind eye to any bottle of whisky where we know we can make a quicker return to raise funds for larger purchases. Investment in these types of whiskies is only possible due to our partnership with WhiskyBrother, where we have the avenue and distribution in place to be able to accomplish just this. Having access to these bottles and having the ability to move them is a key component to our cash flow.

Lastly there are the “wildcards. Being in the industry gives us a greater insight into what will be the next best thing, and we have insider information on various aspects of the industry ranging from closing of distilleries, new distilleries coming on line, whisky experts in the field, and early tastings of new bottlings. Few examples over the past few years would be Wolfburn, Chichibu, Daftmill and Dornoch. The great thing about these “wildcard” investments is they fit holistically into our overall investment strategy: they can be great assets to move quickly at higher returns, or store and hold to play the long game. These are always a little more tricky, but really pay off when we make the right bet. At SVC we feel whisky is such a diversified category that it is easy to overlook certain bottles that can provide guaranteed returns. Big or small they all add up to the end goal of having a rock solid portfolio of Rare and Collectible whiskies, and ultimately maximise the returns for our investors.

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