Recently, the Toronto chapter of CAIA Canada held its semi-annual C+C (Congratulations and Commiserations) event at the storied and oaken-walled Cambridge Club. To celebrate those who got through and comfort those who would try once again in the fall, Marc Laverdiere, Scotch Whisky Ambassador, presented an informative and much-liked whisky tasting featuring three unique-tasting single malts from Highland distilled The Macallan.

Like alternative investing, all whisky (and non-Scotch: whiskey) starts with similar ingredients and basic processes but the attention to a high quality, no-shortcuts approach yields best results over time. Much like a pension plan, whisky has a long term (10-50 years) investment horizon.

Not to go into too much detail, the basic distilled alcohol (at about 70% alcohol by volume) is cut, much like the bespoke tranche of a CDO, discarding the top layer (which is too light and alcoholic) and the lower one (which is reused in future distillations). The Macallan only uses the best 16% in their next process: casking.

Held in American bourbon or Spanish sherry casks for ten to fifty (sometimes more) years, the whisky takes on, in varying degrees, the nature of the wood and its surroundings. Once aged, the casks are vatted-that is, mixed along strict parameters to create the perfect color. (Think of securitization and you'll have a close analogy, but without the conflicts of interest as it's all in-house.)

Two other CAIA chapter executives in attendance were Peter Chiappinelli and Stéphane Amara, who head up the Boston and Montreal chapters, respectively. They gave an update on what initiatives and events they'd had and have planned and Peter especially recommended members to sign up, as he did, for the event updates from other cities and countries they might visit-to know what is happening but also, again as he did, to have the opportunity to attend one.

The attire was business to business casual with one noted attendee exercising a Bermudian option by donning shorts with a blazer – illustrating well Marc's advice never to let people tell you how to drink your Scotch, just so long as you drink it. With ice, a tad of water (to open it to the nose) or neat, Scotch, as he said, is not meant to be saved only for 'special' occasions (N.B. once bottled, it does not age; it is simply older) but to open with friends (as we did that evening) and make an occasion special. He also noted that once about half-emptied, oxidization can mar the taste in time. His recommendation: drink it up; and if you can't finish a bottle over a couple of years, then you have other problems!

James Burron
CAIA Canada Chapter Executive