Wednesday, 30 July 2014
Last updated 54 min ago
May 17 2010 | 12:37pm ET
There will not be a Triple Crown winner in thoroughbred horse racing this year—Looking At Lucky’s Saturday victory in the Preakness Stakes over Kentucky Derby winner Super Saver ensured that the sport will go at least 33 years between Triple Crown champions. But there will be a new horse hedge fund in 2010.
M & M Stables founders John and Susan Moore are set to launch a hedge fund investing exclusively in female thoroughbreds, called Platinum Horse Racing Ventures.
“We’ve done very well buying moderately priced fillies and developing them into valuable broodmare prospects and broodmares who give us a ton of joy on the track and then sell for significantly more than their purchase price,” John Moore told HedgeCo.net. “For example, we purchased a filly named Zaftig for $150,000 and sold her for $1.6 million. Smokey Glacken cost us only $150,000 and she brought us $1.35 million at auction after her lucrative racing career.”
In its 10 years in the business, M & M has seen more than half of its starters become Stakes horses, with 41% of those winning. The stables’ horses have been in the money—coming in first, second or third, earning its owners a piece of the purse—57% of the time, Moore said.
What’s more, now is a perfect time to launch such a fund, he added.
“The yearling market is relatively cheap now, and launching the fund should be the best way to significantly expand our operations and take advantage of current pricing,” Moore said. Platinum is set to launch this summer.
Moore’s fund joins several other horse hedge funds, notably International Equine Acquisitions Holdings, whose Big Brown won the Kentucky Derby two years ago, and Thoroughbred Legends Racing Fund, a joint venture of three highly-decorated horse trainers, both of which debuted in 2008.
Platinum boasts G&S Fund Services as its administrator and JPMorgan Chase as its custodian.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…