21st October 2022
September marked the beginning of buying and trading casks held by the Whisky Cask Fund in Scotland.
Together with our broker, we are always scanning the market for excellent deals on whisky casks and have already traded some of the stock. As we are approaching year end season, the market is highly liquid and the trends are extremely promising.
Currently, the Fund is already well ahead of its target returns of 16-20% per annum and we will share preliminary unaudited performance figures by end of November 2022.
Furthermore, and as part of the growth strategy, we have re-racked and sold some barrels to uplift the NAV. ‘Re-racking’ is an industry term for pouring the whisky from one barrel into another cask or barrel.
Depending on the type of cask and its ‘finish’, re-racking whisky to a new barrel can substantially increase its value.
There is a minor caveat: the so-called devil’s cut. A minuscule amount of whisky is lost each time a cask is re-racked, but it is made up for by becoming something new, different and more valuable.
September also saw the death of Queen Elizabeth II, a State Funeral and a new UK Prime Minister who went on a tax-cutting spree, which put Sterling on a rollercoaster ride. All the Fund’s whisky stock is in Sterling which therefore might have an impact on overall performance.
Also, at the end of July 2022, Ian Berclaz, CEO of Blair Road Capital, undertook a due diligence trip to Edinburgh, Scotland. The journey’s aim was to finalize the purchasing and sales processes and ensure smooth transactions and issuance of cask ownership.
During the trip, Ian also visited some of the bonded warehouses, which have short- and long-term storage space, re-racking capabilities, and bottling facilities. Click here for the full report.
We will send you another Whisky Cask Fund update next month!
CEO, Blair Road Capital
For The Whisky Cask Fund