Pinhooking - A speculative investment process of purchasing a thoroughbred horse as a Yearling, and selling it as a Two Year Old in training for a profit.
Plain and simple, the goal of our pinhooking partnership is to buy yearlings, break and train them for 5-8 months and sell them as ‘Two year-olds in training’ at a profit. Pinhooking has gained significant popularity in the past decade mainly due to two reasons
- The increase in the number of Two Year old thoroughbred auctions, as of 2010 there were 12 Two Year-old in training sales in North America, selling over 3,000 horses in total
- For buyers, buying a Two Year old in training eliminates some of the uncertainty of how good a potential racehorse looks, trains, and acts. And barring any setbacks, two year olds are generally sent to the race track to prepare to race, providing some buyers the ability for an almost instant (potential) return on investment.
Potential investors in our pinhooking partnership must keep in mind that thoroughbreds are living breathing animals, and between the time that they are purchased as yearlings and sold as two year olds there is the potential for injuries, illness, and other physical problems. It’s a risk, but the advantage of our partnership is that horses deemed with potential, and endure adversity generally command top dollar.
What makes our partnership different from others is our ability and willingness to race thoroughbreds; we are willing to be patient and race the horse if that’s what needs to be done to maximize the value for investors. Some examples of why we would race a horse rather than sell in auction
- Minor injuries or illness that prevents the horse from preparing for a spring auction
- The horse fails to meet the reserve price, in other words the minimum price we would accept based on the horse’s pedigree, conformation, and training while under our care.
We have the advantage of many months of training knowledge about the horses in the partnership, if the horse is training like a superstar and doesn’t command top dollar in an auction, then the best decision can be to race the horse under the partnership name. Sometimes it means racing the horse to prove its value and selling privately, selling in an auction, or continuing to race…and having potential shot at racing glory!
The investment program can be very rewarding and educational as well, investors in the partnership have full access and are encouraged to visit the horses at the farm and attend auctions we’re selling at.
Some of the benefits of Pinhooking with Affirmed Bloodstock include:
- Affordable ownership and diversification for risk sharing.
- Built in expense allowances for training, veterinarian, and shipping costs to avoid cash calls.
- Investors can redeem their funds at any point between July 1st and August 31st (funds in the partnership on September 1st will be used for the next year’s pinhooking venture)
- Monthly email/telephone updates on all horses in the partnership
- Annual financial/tax preparation at no additional expense to investors.
- Direct access to training farms, partnership horses, and auctions.
- Affirmed Bloodstock principal participates substantial dollars in the partnership.