Sunday, 30 August 2015
Last updated 1 day ago
Jun 10 2008 | 2:00am ET
Not content with beating horse hedge-fund-to-be International Equine Acquisitions Holdings on the track, Hall of Fame trainer Nick Zito plans to beat them at their own game.
Zito, who trained Da’Tara, the longshot that won Saturday’s Belmont Stakes, denying IEAH’s Big Brown’s bid to become the first Triple Crown winner in 30 years, is teaming up with two other horse racing legends to launch their own horse hedge fund.
The Thoroughbred Legends Racing Fund, a joint effort of Zito and fellow trainers Bob Baffert and D. Wayne Lukas, aims to raise between $75 million and $125 million by the end of August, The Wall Street Journal reports. The three longtime rivals will continue to train horses for private clients, will team up to scout and develop thoroughbreds. The fund will seek to buy cheaper, rawer horses than are usually acquired by thoroughbred investment partnerships, hoping the three trainers—who between them have won nine Kentucky Derbies, 10 Preakness Stakes, seven Belmont Stakes and one Breeders’ Cup Classic—can turn them into champions
The fund will seek to build a 100-horse stable within three years.
Like many a hedge fund, Thoroughbred Legends will charge a 2% management fee and 20% performance fee, with a $3 million minimum investment requirement.
IEAH, run by a pair of Wall Street veterans, is in the process of raising a $100 million horse hedge fund.
May 27 2015 | 2:15pm ET
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