Ryan Lynn, tell us a bit about your background in finance?
From a young age I was intrigued by the financial markets and the psychology behind them. Like most young, confident individuals speculating in the stock market, I made the typical rookie mistakes every investor makes. There were terrible decisions of what and where I deployed the little money I had. Fortunately, due to a lot of studying I turned this around and began to see great results. But I’m grateful to have learned those valuable lessons prior to my financial career.
When I started my investment career, I was the most inquisitive employee. My position was junior broker, but I was more of a glorified teaboy. The truth is, I didn’t mind being their run-around because they were teaching me so much just by being in their presence. And here I was, infused with swaps traders that had traded for some of the largest tier one banks in the world.
I went on to qualify in derivatives and tax. I still meticulously study economics and behavioural finance to this day. I then went on to work for a proprietary fund, leading on to work for a systematic global macro hedge fund.
The key is to always surround yourself with sophisticated people, not to be the sophisticated one in your group. If you’re the most intelligent person in the room, you’re in the wrong room.
If you’re the most intelligent person in the room, you’re in the wrong room.
Why fine wine?
Aside from its qualities as an asset class, I really must give credit to Daniel Walker the co-founder of Oeno. Daniel and I’s working relationship began many years ago in the equities market. Over time, Daniel’s passion grew for wine, which he introduced to me several years ago, which I’m delighted to say has developed into a full-blown obsession.
What led you to work for Oeno and what is the mission there?
There are many factors that led me to work for Oeno, one of the key reasons was the rapidly declining global economy. From indicators that financial professionals around the world are pointing to, we are set to enter a precipitously significant market contraction, of which we are nowhere near the bottom. My growing interest in fine wine, particularly as an asset class has become a point of fascination for me, because with its fundamentals it should be one of the most invested in commodities as opposed to one of the most seldom heard of. Daniel Walker has been keen to reigniting our business relationship for a number of years and, I must admit, that the invitation to many of OenoFuture wine tastings certainly helped.
My mission is to build on the foundations that Michael [Doerr] and Daniel have created by building on data-driven purchasing, expanding the investment structures framework and grow into new and exciting markets, in terms of both investor classes and regions.
How does fine wine compare to other assets you have worked with?
The simplicity of the asset is endearing. Having worked alongside some of the greatest minds in finance, coupled with a professor from Oxford university. We were fastidious in the creation of systematic and market driven strategies using various metrics. One of the metrics I was particularly fond of the result was the correlation coefficient between equities and fine wine indexes showing close to a zero correlation, really shining in a league of its own. It was this realisation that was pivotal in my decision to change careers and enter the fine wine market.
During times of economic turmoil such as we are seeing today with a global debt crisis, it’s always prudent to hold asset-backed vehicles that hold intrinsic value.
Even against this gloomy economic backdrop, it’s worth noting that during the 2008 recession, the fine wine market deprecated less than 1%
How do you see the fine market performing over the next five years?
Due to the unique nature of the fine wine market, where growth depends primarily on supply and demand, I see the market continuing to rise. Even against this gloomy economic backdrop, it’s worth noting that during the 2008 recession, the fine wine market deprecated less than 1%, which no economist is expecting as extreme downturn at the moment, but I’m confident in the markets resilience, so therefore anticipating growth over the next five years.
Where we have experienced record-breaking price movements over the last 18 months due to all of the global difficulties we have faced – such as supply chain issues, covid, inflation etc – without the addition of anymore ‘end of the world scenarios’ I see these tapering off in the next 24-36 months and moving back into a more natural rhythm. Then again, considering how the last three years have been for macro events, I certainly wouldn’t be surprised if there was more fuel added to the fire.
Any plans for expansion for Oeno?
Yes, we have lots of plans in the works. Unfortunately, my competitors would love to hear about the many cogs moving in this well-oiled machine. So, I must keep my cards close to my chest.
Conversely, I will tell you that off the back of our success, we are expanding our business to Miami to open an Oeno House there, which is our boutique wine bar currently situated at The Royal Exchange and opened by the mayor of London in 2021. This is to provide an even stronger exit route to investors.
For more information, see oenogroup.com