Building a 100-Horse Stable, One Micro
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FRIDAY, AUGUST 2, 2019 BUILDING A 100-HORSE GULLO, INCREASING 2YO PRESENCE, BRINGS TWO-PRONGED ADIRONDACK ATTACK STABLE, ONE MICRO- by Joe Bianca SARATOGA SPRINGS, NY--Horsemen and fans of New York SHARE AT A TIME racing are well familiar with the name Gary Gullo. The veteran trainer is consistently potent with claiming types and can get the right horse ready to win first out of the box. On the national scene, his name is much less recognizable, but that changed this year at Saratoga, when he had the distinction of being leading trainer after day one of the elite meet. He=ll look to build on that honor when he starts two juvenile fillies in Sunday=s GII Adirondack S. at the Spa, an opportunity he carved out by going back to what paid the bills when he first started training nearly 40 years ago. Cont. p6 IN TDN EUROPE TODAY DEIRDRE DELIVERS NASSAU FOR JAPAN MyRacehorse photo Deirdre (Jpn) (Harbinger {GB}) delivered a historic first win for By T.D. Thornton Japan at the Qatar Goodwood Festival with victory in the G1 Qatar Nassau S. Click or tap here to go straight to TDN Michael Behrens has very suddenly--and a bit unexpectedly, Europe. he admits--found himself in a position to be buying a significant amount of bloodstock. Behrens is the co-founder of MyRacehorse, the micro-shares syndicate that acquires partnership interests in racehorses then slices those assets into far smaller investment opportunities that generally cost below $400 per share and usually equate to one-10th of 1% of ownership in a race-ready horse, all training costs included. The firm barely existed a year ago and only bought its first 2-year-old at auction this March. Yet Behrens told TDN a recent strategy switch from building a crowdfunded stable with mid-caliber stock to assembling a more elite equine portfolio with six-figure-valued horses has been so well received by individual investors that MyRacehorse now projects to triple its current roster of 35 micro-partnerships by acquiring interests in 100 total horses over the next year. AIt took awhile to catch on,@ Behrens said. AI think people were being cautiously optimistic to see if we could deliver what we promised on the micro-share platform. When we first started, we were buying horses valued on average around $30,000.@ Cont. p3 MAKING . The Only Sire Ever With 5 “TDN Rising Star” 2YOs Before August In Any Given Year. COMICAL Santa Anita debut by 6L FRANK’S ROCKETTE Churchill debut by 8 3/4L SHOPLIFTED Saratoga debut by 4 1/2L IMMEDIATE IMPACT Del Mar debut by 6 3/4L RISKY MISCHIEF Saratoga debut by 7 1/2L INTO MISCHIEF www.spendthriftfarm.com PUBLISHER & CEO Sue Morris Finley @suefinley [email protected] V.P., INTERNATIONAL OPERATIONS Gary King @garykingTDN [email protected] EDITORIAL [email protected] Editor-in-Chief Jessica Martini @JessMartiniTDN Managing Editor Friday, August 2, 2019 Alan Carasso @EquinealTDN Senior Editor Steve Sherack @SteveSherackTDN Racing Editor Brian DiDonato @BDiDonatoTDN News and Features Editor Ben Massam @BMassamTDN Associate Editors Christie DeBernardis @CDeBernardisTDN Joe Bianca @JBiancaTDN ADVERTISING [email protected] Director of Advertising Alycia Borer Advertising Manager Lia Best Advertising Designer Amanda Crelin Advertising Assistants Alexa Reisfield Amie Morosco Advertising Assistant/Dir. Of Distribution Rachel McCaffrey Photographer/Photo Editor Sarah K. Andrew @SarahKAndrew [email protected] Cape of Good Hope (Ire) (Galileo {Ire}), Mohawk (Ire) (Galileo {Ire}), Coral Beach (Ire) Social Media Strategist (Zoffany {Ire}), and Happen (War Front) tour Saratoga's main track on Thursday Justina Severni morning. | Sarah Andrew Director of Customer Service Vicki Forbes [email protected] HAWTHORNE WON’T RACE 2020 SPRING MEET 9 Hawthorne Race Course will not run a spring Thoroughbred meet Marketing Manager in 2020 because the afternoon races will conflict with the large- Alayna Cullen @AlaynaCullen scale reconstruction of the track's grandstand and clubhouse that will transform the plant into a racino. Director of Information Technology Ray Villa [email protected] TODAY’S GRADED STAKES Bookkeeper EST Race Click for TV Terry May 8:50a Oak Tree S.-G3, GOO -------------- TVG [email protected] 9:25a Bonhams Thoroughbred S.-G3, GOO -------------- TVG 10:35a King George Qatar S.-G2, GOO -------------- TVG WORLDWIDE INFORMATION International Editor 11:40a L’Ormarins Queen’s Plate Glorious S.-G3, GOO -------------- TVG Kelsey Riley @kelseynrileyTDN 4:39p Nat’l Museum of Racing Hall of Fame S.-GII, SAR TJCIS PPs FS2 [email protected] 5:51p Saratoga Oaks, SAR --------------- FS2 European Editor Emma Berry [email protected] Associate International Editor Heather Anderson @HLAndersonTDN Newmarket Bureau, Cafe Racing Sean Cronin & Tom Frary [email protected] 60 Broad Street, Suite 100 Red Bank, NJ 07701 732-747-8060 | 732-747-8955 (fax) www.TheTDN.com TDN HEADLINE NEWS • PAGE 3 OF 16 • THETDN.COM FRIDAY • AUGUST 2, 2019 MyRacehorse cont. from p1 Wayne O in the ring last summer | Fasig-Tipton Behrens said, AThen halfway through our pilot, we started increasing it to $100,000, and we got more and more positive feedback. As we kept increasing quality, we saw that our growth and quality were perfectly correlated. AConsumers said that it was exciting to be part of horses for such a low level. But we heard over and over the idea of potentially having the >Big Horse= is what they really wanted to be a part of,@ Behrens continued. AAnd the fact that we are able to break these types of horse investments down into microBpercentages, it gives people access to what was once inaccessible. ASo we said, >Let=s just go big. Let=s really get into the top end and see if that continues.@ At this point in MyRacehorse=s career arc, Atop end@ equates to the 2-year-old Wayne O (Into Mischief), a $750,000 FTSAUG purchase that the syndicate bought a 60% interest in from Spendthrift Farm earlier this summer. The colt, a half-brother to GISW Restless Rider (Distorted Humor), debuts in a Saturday maiden special weight at Saratoga for trainer Steve Asmussen. Here=s an example of the demand that is driving MyRacehorse toward more expensive bloodstock: On July 25, when shares of Wayne O first became available for purchase on the MyRacehorse app ($95 for a 100th of 1% of ownership, which includes a separate $600 per-share bonus if the horse ever wins a Grade I), individual investors purchased $103,000 worth of Wayne O shares in the first 30 minutes. The new investor limit was reached within four days, selling out all of the colt=s micro-shares. AEven a couple of weeks ago, I had no clue we were going to start getting involved with $700,000 and $800,000 purchases like Wayne O and the next deal I=m working on,@ Behrens said. TDN HEADLINE NEWS • PAGE 4 OF 16 • THETDN.COM FRIDAY • AUGUST 2, 2019 ABut we=re now intending to spend about 75% of our budget on higher-end 2-year-olds.@ To get a detailed sense of how MyRacehorse works, check out TDN=s original article on the company from June 2018. There have been a few minor pricing and protocol tweaks, but those changes have been updated on the company=s FAQ page. Behrens (a marketing executive who=s developed direct-to-consumer strategies for both start-ups and Fortune 500 companies) and co-founder David Kandasamy (a technology specialist who worked as a product development executive at Netscape, AOL, and Yahoo) spent the year before the firm=s launch grinding away at legal due diligence to make sure the offerings on MyRacehorse were in compliance with securities laws. After operating for the first year as a pilot program in which only California residents could purchase micro-shares, on July 14 MyRacehorse received Securities and Exchange Commission permission to begin accepting investments from 43 states (Texas, Nevada, Arizona, Alabama, Nebraska, Florida and Washington are the holdouts, but the firm expects several of those will be available soon). AA few weeks ago we exited being available in California only, and this past Saturday alone we had 100 new people become owners in one day,@ Behrens said. ABusiness has just been crazy-phenomenal in terms of word of mouth. AAs new owners enjoy the experience, they=re sharing it with others,@ Behrens continued. AHow fast people are adopting the micro-shares platform is amazing. It doesn=t take a lot of people. It=s the power of the crowd. People are starting to take notice that we have a lot of purchasing power because we bring people together to do this.@ Behrens said the decision to upgrade horseflesh was overwhelmingly based on customer feedback. AWhat we heard [from micro-investors] is we want 2-year-olds and we want the opportunity to participate in big races,@ Behrens said. ASo we started with a modest budget of like a couple hundred grand, and OBS March was the first time we went to a sale and started looking for partners. We picked up a Jimmy Creed filly that we liked for $65,000 in partnership with Cardinal Hill Racing. It sold phenomenally [on the micro-shares platform]. So we went back in April.@ At OBSAPR, MyRacehorse bought interests in three more juveniles, partnering separately with owners Joey Platts and Slam Dunk Racing to combine for $360,000 worth of purchases. At OBSJUN the firm partnered with Winning Move Stable for another $100,000 colt. Around the same time, MyRacehorse also started scouting for in-training graded stakes prospects. After Street Band (Istan) won the GII Fair Grounds Oaks, Behrens landed a piece of her For the good of the sport.