Candy Ride

In December 2009, we agreed to purchase a share in the up and coming US stallion, Candy Ride. Candy Ride was born and raised in Argentina, where he was undefeated. He ventured to California as a four year old - he did not run as a two year old - and was unbeaten in three starts, beating the top class racehorse and now leading sire, Medaglio d'Oro, in the Group One Pacific Classic over ten furlongs. Click here to check out the performance on YouTube. The son of Ride the Rails retired to stud in 2005, and he has done extremely well with his first two crops, including two Grade One winners, Capt CandyMan Can and Evita Argentina. To check out a picture, and consider his pedigree, click here.

We purchased a share for US$315,000. There are forty shares, and each share entitles the owner to two nominations, together with a share of the pool. So, if there are 120 foals by Candy Ride born in 2011 - excluding those available to the stud farm - the proceeds from the additional forty nomination fees collected are divvied up amongst the shareholders.

Candy Ride's published fee in 2010 is US$25,000, payable when the foals "stand and nurse", so one might expect to receive the cash in H12011. However, as the horse is full in 2010, the laws of supply and demand kick in, and Breeding Capital has sold its two nominations for US$30,000 each, on a "no guarantee" basis, so we have already received the cash. This represents a yield of just under 20%,and we will hope to receive another US$25,000 through the pool, and there is a chance of a capital gain on the share as well. So far, it is looking good!

Candy Ride stands at Lanes End, in Kentucky.

We sold our share in Candy Ride, for a net US$500,000 in early November 2011. We acquired the share for US$315,000, including a 5% commission, in December 2009, and have to date earned income, in sterling terms, of £116,000. We have retained the pool income from the 2011 season, which should yield a further US$40,000. Costs included insurance and our share of keep. All in all, we have made a profit of approximately £225,000 to date, on an original investment of £187,000.