In September we reported that heightened demand for the Super Seconds had boosted prices for Leoville Las Cases. Despite its progress, however, the price ratio of Las Cases to the First Growths (excluding Lafite) was significantly lower than its historical average. This seemed to underscore the label's strong potential value, and we suggested that there was a strong case for investing in the Super Second while this ratio was low.
So how has the situation developed since then? As you can see from the chart below, Las Cases has significantly outperformed the First Growths. Recent vintages increased in value by 14 per cent last year – despite the general drift in prices that we saw in the third and fourth quarters. The Premiers Crus, by contrast, fell almost 17 per cent. As a result, Las Cases' relative value has risen dramatically and the ratio has returned to its five-year average.