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

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note