This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Off to the Racehorse Syndicates

Horse syndicates are nothing new. In the U.S., they originated in the late 1960s when Cot Campbell started his first limited partnership to sell shares of ownership in racehorses.

His company, Dogwood Stable , remains one of the most popular syndication outfits in the sport. But these days, with prices in the thoroughbred market rising astronomically, syndication groups are springing up all over the country.

In the past three years, syndicates owned two top Derby finishers -- the 2003 winner, Funny Cide, and last year's third-place horse, Afleet Alex, who went on to win the Preakness and the Belmont Stakes .

While many syndicates won't see the spotlight of the Triple Crown, some of them are still enjoying the kind of racing and financial successes that are the stuff of dreams.

"There are syndicates that cater to every level of the game and every aspect, depending on what you want to get into," notes Cain.

Barry Irwin, a former horseracing writer, got into the game in 1987 when he formed Team Valor , another well-known stable of syndicated horses, with his partner, Jeff Siegel.

His average clients put down around $12,000 to $16,000 to go in on a horse. Steve Karlin of Merrick, N.Y., president of Karlin Sales & Associates LLC, has been buying into horses with Team Valor for about eight years. In that time, his horses have raced in two Belmont Stakes, a Kentucky Derby and three Breeder's Cups.

"These are races that a lot of people who are spending millions and millions of dollars on horses every year never get a chance to participate in," says Karlin, who grew up riding at a summer camp in New Hampshire. "I got to do it for a lot less than that."

Most recently, Karlin bought a 2.5% stake in a filly named Irridescence for just over $9,000, plus extra charges for travel and upkeep expenses.

The Audemars Piguet Queen Elizabeth II Cup

The horse has since won five out of six races. In late April, it was Karlin's turn as a part-owner to travel expense-free with his wife to Hong Kong and watch Irridescence run the Audemars Piguet Queen Elizabeth II Cup at the Sha Tin racecourse. She took first-place in a nail-biting three-way finish for a $1.8-million purse.

"Irridescence is probably one of the top fillies in the world now," says Karlin. "She's worth a fortune."

A top filly in the industry is worth around $10 million: Team Valor bought Irridescence for $365,000. A winning colt commands anywhere from $15 million to $25 million.

But for every success story in horseracing, there are many more flops.

"If you're going into this thing as an investment, you're crazy," says Irwin. "If you're doing it with money that you're afraid to lose, this is the craziest thing in the world you could possibly do. I don't want impulse buyers. They never work out, and they're never happy. I want guys who have been thinking about doing this for a long time, and they finally make up their mind one day and decide to do it for fun."

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs