http://www.paulickreport.com/news/ray-s-paddock/10-a-share-stronach-sets-up-new-racehorse-investment-companies/

Surprised this didn\'t happen much sooner.

Should be fun, watching the live racefeed and the stock quote simultaneously.

TGJB: Where do I go to short...

miff: \"Where do I go to short..\"


..mortal lock!

Beginner: Initially, I read the post with some enthusiasm...then I spent a few minutes with the S1 registration statement.  Yikes.  You\'re in the hole 25% right out of the gate with the legal and admin fees, then they hit you with another 12%-20% (depending on a couple of variables) for the benefit of the Directors prior to any return to the stockholders on the dissolution date.  (I use \"return\" rhetorically).

This concept has the potential to be appealing (to me, at least) if the economics weren\'t so badly tilted.  I suppose there is a better way to \"own\" horses for a smaller amount of money, but as I continuously read here, it seems like a tough way to make money (betting on them, notwithstanding!)  Maybe TG can apply some consulting to the pools of horses (they\'re listed in each S1) and we can figure out which is the best one to short!

Boscar Obarra: Shorting might be a problem.  They don\'t seem too keen on getting a Nasdaq listing, and barely promise a pink sheet one.

 This is useless unless they trade somewhere liquid , not much more than a private  placement.  

 Then again, if they get lucky with a Grade 1 horse, it could create interest in this kind of syndication. They float the worst kind of garbage on the exchanges, this is at least as viable as many.

sighthound: I wish we had on-track bookies.  TGJB would make the best lines (grin)

sighthound:

Then again, if they get lucky with a Grade 1 horse, it could create interest in this kind of syndication.

Yes, \"interest\", but not much chance of any money.  You\'ll get pictures and a daily e-mail.  You can visit the horses on track with the arrangement of the racing manager.  I don\'t know if other track management will be so willing to accomodate that amount of owners at CD on Derby Day :-)

This is a repeat of Legends Racing business model, or IEAH.  \"You pay for my horses, and you get to say you are an owner and bask in the ego\".  Unless you go big and buy lots of shares.

Better five friends who can afford $1000 a month get together and purchase a local, sound claimer, and have at it as a fun group at their local track, with \"their\" horse.

TGJB: The Graph Racing groups we did (and will do again) offered by far the best deal of any of these things.

I once talked to a guy that was part of a well known outfit that formed three horse partnerships. He was in one that had a horse that won a Triple Crown race, he told me that partnership broke even.

sighthound: Exactly.  Have a reasonably-sized group with good management, intent on maintaining your entry fee base investment so you can start anew.  

Or go small and local with your friends and a lawyer (and a good talk with someone experienced about how horses colic at 3am and you need $4000 now or put him down and oh your gelding will never race again whatever happens and we need the decision within the next 3 minutes please)

But, the advantage is, I think, the \"Racing Club\" atmosphere where someone with a few hundred one-time investment can \"be an owner\".   As long as they realize the money will likely NOT come back to them.

alm: Investing alongside Frank Stronach, now that\'s a novel twist.  FFC.  Just ask the group of investors he bankrupted at Gulfstream a few years ago.

All this sounds like is a novel way of avoiding selling your breeding mistakes at the sales.  You get a bunch of willing morons to help you syndicate them.