Pinhooking
Partnerships
Fox Creek Thoroughbred Capital, LLC invests
in high quality thoroughbred weanlings that are sold as
yearlings at the Keeneland July Selected Yearling Sale,
the Fasig-Tipton August Selected Yearling Sale in Saratoga
or the Keeneland Yearling Sales in September. Fox Creek
uses a proprietary system known as the Sire Identification
Method to select weanlings for purchase at public auction.
The Sire Identification Method is based on statistical analysis
of the most successfully pinhooked weanlings over the past
three years measured by (1) largest price appreciation in
dollars, and (2) largest percentage increase in rate of
return.
The following Kentucky-bred yearling will
be offered for sale by Fox Creek at the Keeneland Yearling
Sales in Lexington on Sunday, September 17, 2000 (Adobe
Acrobat Reader is required to access the hotlinks below):
Hip
#2226 Filly by Canadian Champion LANGFUHR
out of HONOR TO HER (by European Champion SIR
IVOR) - LANGFUHR (by DANZIG)
won the Grade I Metropolitan Handicap, the Grade I Vosburgh
Stake, the Grade II Forego Handicap and the Grade II Carter
Handicap while earning $698,574. His first foals are yearlings
of 2000. HONOR TO HER is the dam of 12 foals, eight to race,
six winners including the Graded stakes winners SAVANNAH'S
JOY (by Storm Bird) and ANNA'S HONOR (by Alleged).
Hip #2226 is a chestnut filly bred on the famous Danzig-Sir
Ivor cross that has produced Graded Stakes Winners DANZIG
CONNECTION and DIVIDE AND CONQUER.
The following Kentucky-bred yearling was sold
by Fox Creek at the Fasig-Tipton Selected Yearling Sale
in Saratoga on Tuesday August 8th:
Hip
#6 Filly by Mt.
Livermore out of Remarkably Easy (by Regal Remark)
- Mt. Livermore (by Blushing Groom) is a Graded stakes winner
of $610,664. He won the Grade II Carter Handicap, the Grade
II Fall Highweight Handicap as the high-weight, the Grade
III Boojum Handicap and the Jaipur Stakes. Mt. Livermore
is the sire of 39 stakes winners including Grade I winners
Peaks and Valleys, Mt. Sassafrass, Housebuster, and Eliza,
each of whom earned more than $1,000,000 on the racetrack.
Remarkably Easy is a stakes winning mare that has produced
three foals of racing age including Fasahah, by Unbrideled,
who earned $43,850 as a two-year-old.
Fox Creek publishes monthly financial statements
and periodic newsletters updating each member on the activities
of the pinhooking venture. Operating profit distributions
are disbursed following the sale of the yearlings. Schedule
K-1's are submitted to each member after the end of each
calendar year.
Fox Creek is a limited liability company,
a form of legal organization that is rapidly replacing general
partnerships. The popularity of LLC's is derived from a
combination of desirable features: an LLC is generally treated
as a partnership for federal and state tax purposes; the
owner's personal assets are generally not subject to the
liabilities of an LLC; and an LLC offers its members flexibility
in the management of the venture. If an LLC is properly
organized, it will be treated as a partnership for federal
and state tax purposes. The flow-through tax treatment of
the venture means that there will be only one level of tax
(at the member level) on an LLC's income. If an LLC generate
losses, they can be passed through to the members and utilized
on their individual returns.
Acquiring weanlings to sell as yearlings is
an extremely risky business. If a weanling acquisition does
not mature as anticipated it may bring a sale price at auction
as a yearling that is less the weanling's acquisition price.
In addition, even if a weanling does mature into handsome
sales prospect as a yearling, the yearling bloodstock market
may weaken resulting in a sale price at auction that is
less the weanling acquisition price. Finally, even though
Fox Creek maintains mortality insurance on all it's acquisitions,
if a weanling or yearling is severely injured in a farm
accident or otherwise becomes ill, the value of that horse
will be substantially diminished and Fox Creek will not
be able to collect any proceeds under the mortality insurance
policy.
For more information on Fox Creek pinhooking
partnerships, please contact us by filling out the form
below.
