Beer investment funds? Hope not

Let’s hope that this doesn’t happen with beer.

Bloomberg.com reports that a boom in fine-wine demand means business is booming for wine fund managers. One example of a new fund that is seeking to attract larger institutional investors into the wine industry is the Dumbarton Group’s European Wine Investment Fund.

The New York-based fund is looking to raise $400 million to invest in vineyards in Bordeaux and Tuscany. Managing Partner Brooks Miller told the Wine Invest 2006 conference in London last month that the fund has $50 million committed so far and plans to raise another $150 million to $200 million this year.

An interesting look at a strange world. One man quoted is chairman of the wine committee at Mansfield College, Oxford. He is in charge of a 4,000-bottle cellar.