JR Bloodstock
Investment
JR Bloodstock Investment offers an investment opportunity in a high-end sector with a proven track record. It is flexible in terms of how you can invest, with the option of taking advantage of attractive tax breaks or enjoying the benefits of a quick turnaround, and it has the potential for significant profit.
Furthermore, it is a fun and social sector to invest in, with the added bonus of the tax benefits offered through the Enterprise Investment Scheme (EIS), should you choose that option.
What does JR Bloodstock Investment do?
We buy thoroughbred foals aged between six to eight months old and sell them within the year as ‘yearlings’. In the trade, it is known as ‘pinhooking’.
If you had invested in JR Bloodstock Investment’s pinhooking operation in each of the past ten years you would have enjoyed an average annual return of +22.85%, inclusive of all costs.
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JR Bloodstock Investment Performance
JR Bloodstock Investment typically buys 10-20 foals per year. The cost of the foals can range from £20,000 to £300,000. The average cost per foal bought in 2021 was £66,000.
Each horse costs approximately £15,500 to keep for the year, this includes cost of skilled staff, expert nutrition, veterinary care and sales entries.
The foals are generally bought in November and December and sold as yearlings the following year, between August and October.
JR Bloodstock Investment Investment Highlights
In buying foals and then selling them as yearlings, JR Bloodstock Investment hits the ‘sweet spot’ in terms of when the highest number of thoroughbreds are at their optimum value. Since setting up its pinhooking operation JR Bloodstock Investment has delivered consistently positive results and enjoyed some notable pinhooking successes.
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JR Bloodstock Investment Benefits & Risks
Benefits Include:
- The investment vehicle qualifies for EIS bringing attractive tax breaks and benefits for three year investments.
- Or, there is the opportunity for a quick return (without EIS tax breaks), as the cycle between purchase and re-sale is less than 12 months.
- Potential for very high return, some foals can more double in value when re-sold as yearlings.
- Exciting, few experiences can match the nerves and thrill of watching a horse you have a vested interest in being sold in front of a packed sales ring.
- Fun and sociable, includes joining the JR Bloodstock Investment team at the sales, on stallion tours of Ireland and Newmarket and attending the races when a relative of a horse in the portfolio is running.
- Informative, personal regular updates on the progress of the portfolio, together with news on all factors that may impact on their value via an app called The Racing Manager.
- Multiple exit strategies, should something occur which precludes a horse from attaining their optimum price at a yearling sale, there are alternatives to explore in order to protect the horse’s value.
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The Risks:
- High risk investment; being animals, horses get ill or injured and in some cases die, although in the case of the latter they are insured.
- Fixed term investment over the course of one year or three years with EIS.
- The buying and selling of bloodstock is an unregulated market.
- The yearling market is polarised; while the top end has remained stable with-standing global economy fluctuations, the middle to lower end can be volatile. This is due to the wider economy and market forces in the bloodstock industry caused by overproduction.
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