Like the thoroughbred horses running in races, the thoroughbred horse racing industry is fast-paced and complex. Whether you are just getting started in the thoroughbred horse racing industry or you’re a seasoned thoroughbred racing pro, you want to have the right people on your team when you’re considering purchasing a thoroughbred race horse. One of the most important roles on your team is an experienced bloodstock agent.
What exactly is bloodstock? Simply, bloodstock refers to the breeding of thoroughbreds used for racing.
Thoroughbred bloodstock agents work with you to find the right thoroughbreds for your horse portfolio. They know when it’s the best time to purchase or sell, provide insider thoroughbred racing information and industry trends, assist in implanting and developing a thoroughbred breeding program, and more.
What is a thoroughbred horse portfolio?
Think of bloodstock agents as your consultant, helping put together your portfolio of stocks. In thoroughbred horse racing, your investments aren’t placed in businesses —they’re placed in horses. Your bloodstock agent manages your thoroughbred portfolio according to your goals and risk tolerance.
But thoroughbred racehorses are far less predictable than stocks. Racehorses are powerful, mysterious creatures with a mind of their own, created by nature. They can’t be manipulated; only nurtured to be what nature intended.
However, they are like stocks in a crucial way: risk and reward go hand in hand.
The younger a horse is, the riskier the investment, because the horse’s potential is unknown and unfulfilled. As a horse grows into its potential, it becomes less of an investment risk, but more expensive and competitive to invest in.
Foals offer the highest investment risk and reward, because they aren’t yet proven. Even if they are the product of a champion, they have a long way to go, and there’s no guarantee how they’ll ultimately turn out. It’s like betting on the child of a great athlete while the child is still in kindergarten.
Weanlings and yearlings are like middle- and high-schoolers. They come into the size and development that investors hope for, and they start to draw more attention.
Two-year-olds are ready to train. They are like college athletes looking to turn pro. The talent and intelligence are there, but they have yet to prove themselves on the big stage. Two-year-olds come with less risk, but it’s more expensive and more crowded to invest in them.
It takes a lifetime of experience to read the lineages and bloodlines to carefully select the broodmares most likely to produce top talent.
Bloodstock agents offer invaluable expertise and assistance with:
- Advising their clients on the ins and outs of the thoroughbred horse racing industry.
- Spreading money invested across this spectrum of risk, just like a financial portfolio.
- Assisting current racing industry professionals to improve their chances of success.
- Identifying and establishing your horse racing goals.
- Creating and executing a plan to help reach your goals.
- Buying and selling horses on your behalf.
- Finding the best breeding opportunities.
In addition to the in-depth racing industry experience, an experienced bloodstock agent can advise clients on breeding, racing prospect knowledge, if and when it is a good time to buy a broodmare, what the best broodmare and stallion pairs are for breeding, ways to create your own family line within the thoroughbred racing industry, and best practices for raising thoroughbred racehorses.
What makes a good bloodstock agent?
Integrity
The best bloodstock agents always act with honesty and integrity. They’ll care for your investment like it’s their own. Unfortunately, asymmetries aren’t unheard of in this business.
For example, an agent who isn’t acting with integrity may say to a horse seller, “My client has $100,000 to spend on a horse. I’ll have them buy your horse if you split the commission with me.” Because of this, investors may get taken advantage of or get the short end of the stick.
Over the years, the horseracing industry has formed numerous organizations to guard against fraud, and have done so very effectively. But in general, be sure to investigate your potential bloodstock agent’s reputation.
Record of success
At the end of the day, you want the best possible return on your investment. Your bloodstock agent should have a reputation for winning.
Horse racing may feel unpredictable, but there are bloodstock agents who can identify winners more than five times higher than the average. They do this by understanding thoroughbred bloodlines.
Thoroughbred racing dates back to the 1600’s in England, and the remains of famous bloodlines can still be seen in horses today. Experienced bloodstock agents can predict characteristics in the offspring of a particular stallion and broodmare.
How do you choose a bloodstock agent?
When choosing a bloodstock agent, you want to look for someone you enjoy working with who has deep industry knowledge. Because you are working with animals, you want to choose someone who is in the industry for the love of the horses and the sport but also understands the magnitude of the financial aspects. Meet with several agents to see who might best fit.
Some questions you might want to ask a potential bloodstock agent include:
- How long have you been in the racing industry?
- What bloodstock do you prefer?
- How do you choose a broodmare?
- Do you offer services for raising thoroughbreds at your facility?
- How many bloodstock clients do you currently work with?
- Can I speak with your past clients or references?
- What have been your results?
A lot of people get into horse racing to win the Kentucky Derby, but that doesn’t always happen. Failure is part of the thrill and intrigue of this game. In fact, a 25% success rate is good enough to get you into the hall of fame.
As you delve into the world of horse racing, be sure to temper your expectations. Be patient and smart with your money, and keep the love of the horse and the experience at the heart of your involvement.
Even if your thoroughbred doesn’t win the Derby, there are a multitude of bloodlines and stakes races that can set your horse apart from the field.
Taking the next step in thoroughbred horse racing
Making an investment in a thoroughbred is easier than you might think. There are many ways to invest at your comfort level. It’s common for a group of friends to pool their money and buy a racehorse together. They make trips to races to watch their horse perform.
The magic and excitement of horse racing belongs to everyone. This step into the lifestyle is one of the best parts of the experience — and your bloodstock will act as your guide.
Story by Jessica Perkins
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