We focus on fillies, because they generally have more residual value than colts. The top 10ish colts every year become stallions, while there are thousands of fillies that are worth something at the end of the day. Focusing on fillies also allows us to manage our downside risk. If we buy a share in a filly for $200,000, but that filly is already a Grade 2 winner, that share in the filly might be worth $125,000 - $150,000 even if she never wins another race. If that filly were a colt, that share would likely be worth $0.
How do you decide which horses to buy?
We are looking at racing across the globe every day to try and find the right opportunities. We have had success importing horses from Ireland (or leaving them there on a much smaller scale). Typically, Irish owners are more willing sellers, which creates more value than American horses. We evaluate each horse to see the potential financial upside, as well as the type of experience that a given horse can provide to our partners.
Approximately what % ownership does $50k get you for a top tier thoroughbred?
On average we will own 25% of each horse, so your $50,000 buy-in will be roughly 0.7% of each horse. What we provide is the opportunity to get into a stable of top tier thoroughbreds that are training with top tier trainers. Our model caps the outlay at $50,000, while providing you an opportunity to own shares of horses that would cost millions to do on your own.
Our partners have an equity position in every horse. They are entitled to purse money and any sales price, net after expenses. Typically, we only issue a distribution at the end of the partnership, or at the end of year 2, if we were to extend it to a third year. Our primary goal is to provide our owners with an Exclusive Ownership Opportunity at the Highest Levels of Thoroughbred Racing. Our secondary goal is to manage the horses as well as we can to allow the partnership to perform as well as it can financially. Over the course of time, owning racehorses is not a money-making venture.
Can you explain the partner experience?
We use an App called Racing Manager. We post videos, race previews, race analysis, purchase rationales, and are continually working to expand the content we provide to our partners to help them learn and get the most out of their ownership in Medallion.
Can you explain the partner experience?
Scheduled farm visits with mares, foals, and yearlings with me or another coworker when a time is convenient for you.
