Pinhooking

The principle of pinhooking sounds simple – buying a foal or yearling and sell it the following year at the sales for a profit in the interim.

The skill is being able to envisage, and manage, the development of the foal into a yearling coupled with knowledge of the racing side of the business where successful performances of the foals’ relatives will enhance their value.

There are a handful of experts that can trade in this way and what is fashionable when you buy may not be when you sell.

Lots can happen both in geopolitics and on the racecourse to influence the fashion.

Choosing the right sale to buy and sell the horse can make a huge difference so you have to have your finger on the pulse of which market is buying what pedigrees.

Very few assets can change their value so quickly and the potential returns are high but that comes with risk so the key is to spread the risk over a number of foals.

Over the last 10 years the foal market has shown little fluctuation but the turnover in Yearling sales from 2013 to 2017 has grown almost 50% largely due to an increase in overseas buyers and enhanced by the recent relative weakness of the pound.

Tattersalls Yearling Sales

YearCataloguedOfferedSoldAggregateAverage
20182,2992,0441,670166,931,90099,959
20172,2171,9791,585162,519,850102,536
20162,0851,8561,491137,225,20092,036
20152,3972,1231,705135,686,00079,581

Changes Year-on-year

Year Catalogued Offered Sold Aggregate Average
2018 3.70%3.28%5.36%2.71%-2.51%
2017 6.33%6.63%6.30%18.43%11.41%
2016-13.02%-12.58%-12.55%1.13%15.65%
20158.51%8.93%4.03%1.45%-2.48%

Tattersalls Foal Sales

YearCataloguedOfferedSoldAggregateAverage
20181,17596968134,924,75751,285
20171,14795774232,668,20044,027
20161,13695774330,568,35041,142
20151,2771,08980333,565,60041,800

Changes Year-on-year

Year Catalogued Offered Sold Aggregate Average
2018 2.44%1.25%-8.22%6.91%16.49%
2017 0.97%0.00%-0.13%6.87%7.01%
2016-11.04%-12.12%-7.47%-8.93%-1.57%
201514.43%12.73%3.08%4.53%1.40%