Horse Racing Legends Plan Hedge Fund

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.

RELATED STORIES

Big Frown For Hedge Fund Horse At Belmont
Hedge Fund Horsemen’s Dubious Past
Hedge Fund Horse Aims For Triple Crown
Hedge Fund Horse Wins Kentucky Derby
New Hedge Fund Won’t Look Gift Horse In Mouth


In Depth

Q&A: High Conviction, Low Correlation

Oct 30 2014 | 7:35am ET

Acadian Asset Management's numbers are big: over $70 billion in assets under management...

Lifestyle

Ex-Hedgie Steyer Gives $56M To Climate Action Super PAC

Oct 28 2014 | 9:23am ET

Retired Farallon Capital founder Tom Steyer has poured almost $56 million into his...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.