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Special Knowledge = Special Opportunity

How do Bourbon investment funds differ from other types of alternative investment funds?

The Bourbon Reserve's Bourbon investment funds, or Whiskey Equity Investment Trusts (WEITs), differ from other types of alternative investment funds in several ways, mainly due to their unique focus on the Bourbon industry and the underlying assets they invest in. Here are some key differences:

  1. Asset Class: Bourbon investment funds primarily invest in bulk Bourbon, specifically in barrels, while other alternative investment funds may invest in a variety of assets such as private equity, hedge funds, real estate, commodities, or collectibles.

  2. Aging Process: The value of Bourbon is significantly influenced by its aging process, which can take years. This long-term investment horizon is not typical for many other alternative investments, which may have shorter timeframes or fluctuating holding periods.

  3. Industry Expertise: Bourbon investment funds, like The Bourbon Reserve, are often managed by experienced industry experts with deep knowledge of the Bourbon market. This specialized expertise is essential for identifying high-quality Bourbon and navigating the unique risks associated with this investment.

  4. Market Dynamics: The global Bourbon market is influenced by factors such as consumer preferences, regional demand, regulatory changes, and competition among brands and producers. These factors may differ significantly from those affecting other alternative investments.

  5. Liquidity: Due to the nature of the assets and the aging process, Bourbon investment funds typically have lower liquidity compared to other alternative investments. Investors should be prepared for a longer-term commitment when investing in a Bourbon fund.

  6. Storage and Quality Control: Proper storage and aging are crucial for maintaining and enhancing the value of Bourbon. This requires specialized knowledge and facilities, which may not be applicable to other alternative investment funds.

  7. Currency and Regulatory Risks: Bourbon investment funds, especially those focusing on international markets, may face unique risks related to currency fluctuations and compliance with complex trade regulations that can vary across countries.

While our Bourbon investment funds share some similarities with other alternative investment funds, such as seeking diversification from traditional asset classes and potential for higher returns, they differ in their focus on the Bourbon industry and the unique investment characteristics associated with this asset class. Potential investors should carefully consider these differences, their financial goals, and risk tolerance before investing in a Bourbon investment fund.

About the author

Andrew Newby

Andrew is a passionate entrepreneur and experienced tech strategist with a deep love for the Bourbon industry. As the CEO of The Bourbon Reserve, he leads the charge in navigating the exciting world of Bourbon investments. Andrew's entrepreneurial spirit extends to co-founding The Toledo Spirits Co. and HEAVY Beer Co., where he has played an instrumental role in their growth and success. Alongside his ventures in the spirits industry, Andrew boasts a strong background in software product development, making him a versatile leader in both the Bourbon and tech worlds.