High Dollar Broodmares
Our Strategy:
Simple and based upon Time Proven business
and Investment Principles, a diversified approach.
Diversification of asset classes is the safest way to grow value and protect assets. The standard asset classifications vary from conservative to less conservative. It has been proven that having 10% of your assets in high risk investments actually produces an overall safer investment result. By actively managing your investment classes, mixing real estate, business, loans, stocks/bonds/commodities, and high risk business/futures funds, the lowest overall beta (risk factor) is achieved. We believe the horse syndication business fits well with this strategy.
Why horses?
First, horses, businesses and its farm/operations are real assets. Real Assets hold value in inflationary times, which has continued to occur for as long as we can remember. We recognize that Broodmares gain value based upon a proper breeding, raising and sales program. So, net worth grows both from sales of horses and from growth in value of our fixed asset purchases (Broodmares). As with any business, years later, we sell the assets, the gain and either turn that over into a like kind investment, continuing the tax deferment, or recognize capital gains taxes.
By using our experience to select and buy Broodmares with excellent pedigrees, we constantly improve our Broodmare stock, while still looking for value at sale.
Choosing the right Stallions to breed to who are growing in popularity, we walk up the value of our yearlings and our Broodmares.
Holding quality Broodmares over time, results in capital gains upon dispersal. Any Broodmares that are not improving are dispersed early. Keeping our better fillies presents us with a lower cost basis and a higher quality Broodmare. Growing our Broodmare stock in this fashion grows capital assets at lower costs – the foundation of a good business.
We buy higher value assets, looking for value at the sale. The more high producing capital assets, the higher value growth and revenue returns on investment.
The most important aspect is preparing the animal to sell. With our more than 40 years combined experience of prepping million dollar prospects, we confidently raise them and bring to sale, placing them where they will stand out and realize their ultimate potential.
Why not other types of horses? It costs as much to board and care for a regular horse that sells for $1,500 with the saddle and tack, or a low end broodmare as it does for a high end thoroughbred that can sell for millions.
Being involved with this syndication provides many opportunities for clients to enjoy and learn more about this investment. The more time you spend on this business venture may increase your tax write offs. You will want to discuss this with your tax advisor.
How does this work?
We review Broodmares over several years, if necessary, and average in the price and value of the Broodmares.
When an opportunity presents itself for us to buy Quality Broodmares for a lower cost, we do so.
Depending upon your tax status, you can deduct the expenses as ordinary expenses against your income, take accelerated and special depreciation allowances, possibly as much as 50% of the investment in the first year.
Only qualified investors should participate, as this investment is high risk.
We spread the risk out, by buying at either exceptionally low prices or buying over time to average in the investment. We put 10 or more mares into one syndication, allowing for unforeseen factors. As previously mentioned mother nature requires spreading the risk.
Why we do this?
Do you want to own the next Secretariat?
Do you want to own a broodmare and make money?
Do you want to enjoy being involved in the thoroughbred industry without all of the hassle?
Do you want to produce great race horses, and/or broodmares?
Do you want someone where you invest to take part of the risk, prove that they are not just in it to get your money?
Do you want a tax write off?
That is what we are doing with our broodmares and our money. Whatever your goal is, we can help you with yours in the same way that we are doing with our money.
We have one ultimate goal, to produce the best sale horse and racehorse possible for the level of investment we make. What does that mean? Well the old axiom is, breed the best to the best and hope for the best. Easy, buy Grade 1-winning broodmares like Zenyatta and breed to the top stallions in the industry which are here in Kentucky, like Medaglia d’Oro, Curlin, Tapit, Quality Road, etc. Millions invested and how much earned. If you have money to burn and want the best chance of all to do this, that is what you do. And we know how to assist you in that endeavor.
If you want to scale it down, there are several levels of broodmares and sires that give you almost as good a chance to breed the best racehorse ever, the difference being 2% – 10% spending millions and 8% spending significantly less.
Doing that requires people who know how to do this, and that is what we are doing with our own breeding program. Having produced 2 champions in 9 years and countless graded stakes horses we started with spending on averaged $70,000 per broodmare (highest $190,000, lowest $15,000). Now our broodmare dances are from:
A. $1 million plus, Grade 1-winning/Producing broodmares
B. $500,000 plus, Graded Stakes-winning broodmares
C. $200,000 plus, Stakes-winning broodmares
D. $200,000 plus, Unproven, deep pedigree type broodmares
On the other hand, We have seen people buy multi-million broodmares that produced nothing or produced the greatest racehorses this world has ever seen.
The challenge and the sport, is why we do it.
Broodmare Partnerships
Our approach to buying and selling mares and yearlings is simple, buy high quality. Expenses are the same whether you buy a cheap horse or an expensive horse. We always buy a group of 4-5. Often 2 or 3 in the group will carry the inevitable 1 or 2 that don’t play out the way we would like. Careful mating selections to give young mares the best opportunity at producing a race horse are extremely important. Some of the best race fillies and mares haven’t the best luck with great racing progeny. It’s not about the luck in reality; finding the right cross, being raised on our limestone rich land with natural watershed and highly experienced team are just the necessary combination. Our land speaks for itself, with our outstanding Champion Shanghai Bobby in addition to the 4 other champions raised on this farmland, high percent of stakes winners bred and sold (18%) and highly experienced personnel prove we can produce the “good” horse that people want to buy.
Our Team:
Aidan O’Meara is our Director of Bloodstock. Having worked as the stallion manager at Hill N Dale Farm for 20 years prior he has now 25 years of hands on experience with raising some of the most well bred and physically attractive athletes in our industry, giving him an edge at the public auction scene.
Colby Marks, our farm manager has been with Stonehaven for more than 15 years. His experience in the raising and breeding of high end thoroughbreds is second to none having been the farm manager for Saxony Farm, raising the aforementioned 4 Champions, residing on these farm lands specifically for the majority of the last 45 years.
Leah O’Meara runs our sales department and investment opportunities, whether it be through private purchase and sales or at one of the public auctions. She has developed many relationships throughout our industry and manages investor relations, partnership formation, as well as sourcing/shopping for bloodstock and pedigree research.
ADDITIONAL PAST SUCCESS INCLUDE…
A few highlights….
BECKLES ROAD purchased for $33,000, resultant foal sells for $1,550,000.
EASY LIVING purchased for $60,000, resultant foals sell for $450,000 and $700,000
VENETIAN SONATA purchased for $170,000, resultant foals sell for $600,000 $310,000 etc.
TRUE FEELINGS purchased for $210,000, resultant foals sells $500,000 $375,000 etc.
CANNY purchased for $15,000 resultant foals sells for $500,000.
BERIN MIDNGITH purchased for $75,000 resultant foals sells for $225,000.
High Heeled Girl BY Malibu Moon PURCHASED FOR 75,000; First Foal for $410,000 stud fee $45,000 in 2019
Debby d’Oro BY Giant’s Causeway PURCHASED FOR 60,000; First foal for $250,000 stud fee $50,000 in 2019
STONEHAVEN GRADED STAKES HORSES INLCUDE…
SHANGHAI BOBBY
DAREDEVIL
COLORFUL CHARADES
OLIVE BRANCH
UPPER CUT
HOUR GLASS
ROYAL ACT
CANOODLING
CORNICHE
KENVIN’S DOLLY
Give us a call to discuss any questions you may have!
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