In July, VCM’s Multi-Strategy (MS) Fund performed so well that it ranked among BarclayHedge’s top 10 “Fund of Funds” for the $10M-$250M category. The Barclay Fund of Funds Index is a measure of the average return of all funds in the Barclay database. Ranked number 8, VCM’s MS Fund outperformed the 551 other funds that make up this index.
You don’t have to be good at math to know that ranking 8th out of 559 funds is an outstanding score. In fact, it’s in the top 1.4%.
The VCM Multi-Strategy Fund is a fund that is made up of investment into VCM privately owned wine and vineyard funds. This flagship fund currently has $30M assets under management, and expected annual returns between 12-20%. This fund follows the classical investment fund structure and has an unlimited lifetime. The MS fund offers the highest diversification of all VCM portfolios, through diversification of business activities and sources of revenues, diversification of collaterals (wine bottles, vineyard real estate, and wine production activity), and diversification in the investment horizon period.
In July, this fund returned about 6%. The wine funds that back this portfolio are currently returning between 16-59% annually. Under normal circumstances, that would be impressive. But in the middle of a global health pandemic – that’s formidable. Before Covid-19 hit, we gave the MS portfolio a 10% hurdle rate, meaning that if it returns less than 10% annually, VCM will refund investors all performance fees. Today, mid-pandemic, we’re still so confident about this portfolio of funds that we haven’t changed a thing. It’s 10% or your performance fees back.
VCM also offers investors extra protection with a 10% First Loss Policy.
VCM MS FUND ROI August 2020
The MS fund performance shows how VCM’s wine and vineyard funds, which are categorized as alternative asset funds, act as a hedge against market downturns. Tangible assets with inherent value help to buffer against market volatility since they retain their value despite external forces (say, for example…Coronavirus) that can influence the economy. Wine value comes from supply and demand. Our portfolios are backed by Bordeaux and Burgundy wines that will always be in stronger demand than what the chateaux can supply. This is good news for your VCM investments!
Take a look at the graph below to see how well the MS fund did compared to the S&P 500. Even as the S&P tanked, our MS fund continued to soar – straight into the top 1% of BarclayHedge funds of hedge funds!