Pinhookers Enjoy Bigger Return on Select Juveniles

You don't typically see pinhookers banging heads with big-spending buyers like
Sheikh Mohammed's bloodstock manager John Ferguson and Demi O'Byrne for the
very best horses at the yearling sales. But their participation is important to
the health of the market. Pinhookers provide new homes for many young horses
that don't have the very best pedigrees or aren't as physically mature or as
attractive as some of their peers.

One way to determine how enthusiastic pinhookers will be during the upcoming yearling
selling season is to look at the results for the horses they offered at the
four major select sales of 2-year-olds in training and compare those numbers to
what was spent to acquire those animals as yearlings. The four major auctions
are conducted by Barretts, Fasig-Tipton, and the Ocala Breeders' Sales Co. in
March and Keeneland in April.

In general, pinhookers fared better this year than they did in 2011 for the four
sales combined and that should give them confidence and a bit more financial poweras they shop for yearlings this summer and fall. Their rate of return (ROR) on their investment was 83%, up from
72% a year ago. The ROR reached its highest point since the figure of 116% in

Pinhookers paid an average price of $66,424 to acquire their stock as yearlings. When they
resold those horses this year as 2-year-olds, they brought an average of
$162,643. The yearling average was down 1.3% compared to 2011's pinhooked
horses, but the average juvenile resale price grew 5.4%.

Pinhookers resold 49% of the horses they offered in 2012 for a profit compared to 50% in

A Big Brown - Cool Ghoul colt provided the biggest financial bonanza of any
pinhooked select 2-year-old this year. IEAH Stables, on the advice of Chris
Brothers, purchased the colt for $220,000 at the 2011 Fasig-Tipton Saratoga
select yearling sale. Wavertree Stables resold the him for IEAH for $1.3
million at the Fasig-Tipton select juvenile auction in Florida. His value
increased by $1,080,000.

Another Wavertree client, John Greathouse Jr. of Glencrest Farm, shared in huge
financial rewards at the Keeneland April sale of 2-year-olds in training. He
was an investor in a group of four horses: an English Channel - Treysta filly,
a Sky Mesa - Preemptive Attack filly, a Majestic Warrior - Counter Cat colt,
and a Smart Strike - Glimmering filly. They were purchased for $410,000 at
public auction as yearlings and they were resold as 2-year-olds for $1,330,000,
enjoying a collective gain in value of $920,000. The Majestic Warrior colt
brought $700,000 to top the Keeneland April juvenile auction after being
acquired for $137,000 at the 2011 Fasig-Tipton July select yearling sale.

Ciaran Dunne of Wavertree, Dan Tayloe, and Joe Minor - in various configurations --
were partners in the horses with Greathouse.







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