Last frontier investments : the case of Alpine wines

Masset, Philippe (Ecole hôtelière de Lausanne, HES-SO // University of Applied Sciences Western Switzerland) ; Weisskopf, Jean-Philippe (Ecole hôtelière de Lausanne, HES-SO // University of Applied Sciences Western Switzerland) ; Fauchery, Clémentine (Ecole hôtelière de Lausanne, HES-SO // University of Applied Sciences Western Switzerland)

We identify and examine the performance of frontier investments from 2002 to 2017. Using fine wine as a setting, we find that the trade frequency and value of frontier investments in the form of Alpine wines have increased in recent years, leading to a rise in their prices above inflation rates. We further document that this frontier investment has been favorable in terms of risk-adjusted returns and volatility for investors. We also observe that the inclusion of frontier wines in a financial portfolio is favorable for investors, both in terms of returns and diversification benefits, due to low correlation coefficients. The identification and investment into frontier assets appears beneficial for investors looking for new opportunities. (JEL Classifications: C60, G11, Q11).


Keywords:
Article Type:
scientifique
Faculty:
Economie et Services
School:
EHL
Institute:
Aucun institut
Subject(s):
Economie/gestion
Date:
2020-05
Pagination:
26 p.
Published in:
Journal of wine economics
Numeration (vol. no.):
2020, vol. 15, Special Issue 2, pp. 181-206
DOI:
ISSN:
1931-4361
Appears in Collection:



 Record created 2020-09-25, last modified 2020-10-27

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