TWC Q1 2021: our approach to investing in Bordeaux

While we are cautious on Bordeaux, there are pockets of value, especially following the high quality 2019 vintage that was released at prices 20%-30% below the 2018 vintage.

We established a position in Chateau Pape Clement 2019, scored 96-99 by Jeb Dunnuck, and 96-98 by Neal Martin (Vinous) and Lisa Perrotti-Brown MW (Wine Advocate). The Wine Capital takes into account the full reviews, not just scores. For example, Martin tasted the wine on five different occasions (higher conviction), concluding that the wine “will surely be rewarding for those with patience”.

More generally, Decanter’s Jane Anson commends Pape Clement in her book Inside Bordeaux: “There has been a clear refocusing over the past few vintages… This is still a wine that will age extremely well, but more freshness has been let in over recent years.”

From an ESG perspective, the chateau is moving towards organic and biodynamic farming (HVE3 certification).

The Wine Capital has also been price sensitive. Since the 2019 was released at “only” 10% below the 2018, our trading strategy led us to wait for prices to further adjust downwards in the secondary market before establishing a position. At this stage, as can be seen from the chart below, Pape Clement 2019 offers great value.