The godzilla of syndicates? Legends Fund

[Glimmerglass]

Looks like Kentucky wasn’t going to stand on the sidelines and wait to see how the IEAH folks do with raising their hedge-fund syndicate money. Here comes the Thoroughbred Legends Racing Fund with the all-star cast of in-house trainers “to buy young horses that will be selected and conditioned by” veterans Bob Baffert, D. Wayne Lukas, and Nick Zito

Bloodhorse June 9, 2008 “Plans Announced for ‘Legend’ Fund”

excerpt

The goals of the fund include raising $75 million-$125 million by late August.

The fund is the brainchild of Gentry and Thomas Gaines of Gaines-Gentry Thoroughbreds in Lexington and investment banker Tripp Hardy, who is a partner in Gallatin Capital in New York. It will focus on the purchase of yearlings, but also will acquire 2-year-olds in training.

While “there will be plenty of fillies,” Gentry said, the emphasis will be on colts that can be sold as stallion prospects following their racing careers. Plans call for the fund to buy 70 to 100 horses a year for three years at a variety of levels in the market.

To participate, investors will be required to commit a minimum of $3 million each over three years. The fund will charge a 2% management fee and retain 20% of the profits from racing and sales.

Baffert, Lukas, and Zito will share equally in any economic benefits they receive from the fund no matter who is the most successful in training the horses, according to Gentry. However, the trainers will operate separately in picking out horses to buy and in training them.

[Chiniko]

Two sinking ships (BAffert and Lucas) grasping for a life boat. Zito, I am suprised at some

[Glimmerglass]

[QUOTE=Chiniko;3277276]
Two sinking ships (Baffert and Lucas) grasping for a life boat.[/QUOTE]

Nah. Bob still guides clients to acquire great runners and D. Wayne Lukas has the eye to pick top notch horses at auction sales. His 10-scale is still the stuff of legend. We don’t hear much from Wayne as his wealthy clients have largely passed away over the years.

[DickHertz]

I read this earlier on the bloodhorse and laughed.

This concept is a joke. Just because they are going to have a big bankroll, doesn’t mean they are going to be successful. If I was going to invest $3 million, I’d buy a bunch of $50-$100k yearlings and take my own chances w/out having to pay markup costs and administrative fees. Baffert and Lukas are old news and on their way out.

[Chiniko]

[QUOTE=Glimmerglass;3277288]
Nah. Bob still guides clients to acquire great runners and D. Wayne Lukas has the eye to pick top notch horses at auction sales. His 10-scale is still the stuff of legend. We don’t hear much from Wayne as his wealthy clients have largely passed away over the years.[/QUOTE]

Bob guides, yes. Capitalizes, no.
And Wayne is done

[Texarkana]

I really hate the emphasis on “racing to breed” these days. Shouldn’t it be the other way around?

I’ve had a few choice words to say about this idea and I honestly hope to see it tank. The “big box conglomerate” mentality doesn’t need to take over racing, too.

Also, something I don’t understand-- if Baffert, Lukas, and Zito are all affiliated with the syndicate, does that mean they are essentially shareholders in each others’ horses? Are they still going to keep outside clients? Talk about a huge conflict of interest!

[bobbybobby]

the latest scam to hit our fragile industry !!!

[Pronzini]

I don’t know much about Zito but my thought about the other two is that if they ran out of big fish to catch except through this gimmick who’s fault is it? Mandella been training for the same folks for decades. Pletcher has no problem filling his barn. True there was attrition through death (Bob Lewis; Prince Salmen; Gene Klein) but they have burned their way through some clients too.

[kcmel]

Yeah, I was surprised when I saw Zito was involved with those other two. He is a better horseman (or at least a more compassionate one), and they are yesterday’s news.

[Glimmerglass]

In case it was otherwise missed …

BloodHorse Aug 7, 2008 “Legends Racing Makes Big Saratoga Splash”

excerpts

The new venture, which is acquiring young horses that will be trained by Bob Baffert, D. Wayne Lukas, and Nick Zito, was the sale’s second-biggest spender, paying $3,275,000 for nine yearlings. It also was the immediate underbidder on a $1.5-million Storm Cat – Totemic filly that topped the sale’s opening session.

According to Lukas, pedigree and conformation both are important in Legend Racing’s buying strategy, especially for the most expensive horses.

“When we get up there into six figures, we’re trying to get athletes, of course, but we do want a little bit of page, too,” he said. "When we take off on one like we did on the Rock Hard Ten colt (a $700,000 purchase), we need to have some dam power in there and some classic potential. That’s a horse we think, obviously, could run two turns and could be a classic horse. We would not give that much for a horse that we thought was just going to be a good 2-year-old. We’re trying to develop a horse that will have a lot of bang for the buck. We need a horse that, at the end of the day, when we get ready to ‘cash’ (sell) it, five or six farms will say, ‘We want to stand this horse.’ "

While Legends Racing’s organizers plan to focus on acquiring yearlings, they said they also will be shopping at next year’s sales of 2-year-olds in training.

D. Wayne Lukas is currently tied for 5th place with the Saratoga meet (along with Zito) which is great considering he has a relatively smaller operation these days; Baffert is tied for 6th place.

[Chiniko]

Holy Smokes! Lucas re born???:eek:

[Glimmerglass]

As an aside, per a link off the Paulick Report, IEAH was working on their hedge fund to raise $100M - but nixed that under the current climate.

December 17, 2008

“We made a mistake in not starting it a bit sooner,” IEAH founder Michael Iavarone told CNBC. “There was so much happening through the middle of July that we didn’t really have time to concentrate on it. Then we were heavy into paperwork, getting ready to unveil it in September and then everything hit the fan.”

“The lack of liquidity out there made it hard to take advantage in the upside of our assets. People are just so incredibly tight with their money. So why work twice as hard to sell it now?”

But Iavarone expects the concept of the horse hedge fund to make a comeback.

Conversely The Legends Fund raised the capital they wanted back in the summer.

[Glimmerglass]

BloodHorse 1-26-09 “Legends Racing Ready to Roll in 2009”

“For the most part, we’re very pleased with how they’re doing at this point,” Gentry said. “There are probably 10, I would say, that are going to be speedy and probably 10 of them are going to be two-turn horses. The rest are somewhere in between.”

Legends Racing purchased 38 yearlings for $15,285,000 at public auction and privately acquired another yearling that had been bought back for $140,000 by its consignor at the Keeneland September yearling sale.

[b]Legends Racing Roster

Bob Baffert [aggregate cost, $6,005,000][/b]
(Horse, purchase/buy-back price)
c. Roman Ruler – Brooklynsangel, $180,000
c. Indian Charlie – Emptythetill, $240,000
f. Gulch – Mutton Maniac, $170,000
c. Closing Argument – Accountess, $330,000
c. Afleet Alex – Restored Hope, $225,000
c. Harlan’s Holiday – Shadow On the Moon, $310,000
c. Storm Cat – Spain, $500,000
c. El Prado – Swift and Classy, $1,000,000
f. Unbridled’s Song – Critical Crew, $325,000
f. Tiznow – Katz Me If You Can, $400,000
c. Broken Vow – Tango Passion, $625,000
c. Rock Hard Ten – Tapstress, $700,000
c. Mr. Greeley – Tempest Dancer, $1,000,000

D. Wayne Lukas [aggregate cost $5,940,000]
(Horse, purchase/buy-back price)
f. Pulpit – Cherish Destiny, $210,000
c. El Corredor – Destination Mir, $350,000
f. Songandaprayer – Irene’s Talkin, $475,000
c. Gone West – Laptop, $625,000
c. Indian Charlie – Noble Cause, $150,000
c. Yes It’s True – Scarlet Tango, $400,000
c. Fusaichi Pegasus – Big and Beautiful, $410,000
f. Unbridled’s Song – Celtic Melody, $325,000
c. Malibu Moon – Goes Around, $325,000
c. Maria’s Mon – Prop, $200,000
c. Malibu Moon – Stephie Brown Eyes, $120,000
c. Storm Cat – Turko’s Turn, $1,200,000
c. Unbridled’s Song – Zing, $1,150,000

Nick Zito [aggregate cost $3,340,000]
(Horse, purchase/buy-back price)
f. Fusiachi Pegasus – Crystal Downs, $300,000
c. Tiznow – Indian Snow, $700,000
c. Maria’s Mon – Pember, $190,000
c. Eddington – Appealing Jewel, $325,000
c. Malibu Moon – Carson’s Vanity, $335,000
c. Elusive Quality – Costume Party, ($140,000)
f. Giant’s Causeway – Girl Warrior, $230,000
f. Vindication – Kiss a Miss, $240,000
f. Silver Deputy – Literary Light, $200,000
f. Rock Hard Ten – Party Chatter, $160,000
c. Mr. Greeley – Potential Pleasure, $280,000
c. Successful Appeal – Saratoga Honey, $240,000
f. Vindication – Unique Creek, $140,000

[Glimmerglass]

Worth noting: BloodHorse July 28, 2009 “Tiny Woods First Thoroughbred Legends Winner”

Excerpt

The Thoroughbred Legends Racing Stable, one of the biggest spenders at the 2008 yearling auctions, got its first winner July 25 when Tiny Woods defeated Sidney’s Candy by a head in a 5 1/2-furlong maiden special weight race (VIDEO) at Del Mar in California. It was Tiny Woods’ career debut.

Legends also had Wildcat Nation (KY) in today’s (7/29) Saratoga 7th race with DWL; and on Friday at Saratoga in the 4th race will have Saratoga Fling (KY) with DWL

[Glimmerglass]

[QUOTE=Glimmerglass;4271536]
Worth noting: BloodHorse July 28, 2009 “Tiny Woods First Thoroughbred Legends Winner”[/QUOTE]

As noted on the largely loathesome TVG boards was this from a user:

I received an email from the good folks at Thoroughbred Legends Racing Stables, informing me that Tiny Woods passed away at the end of April, due to complications from pneumonia.

He was a nice runner for Baffert and will be missed.