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Spruce Lane Pinhook

What is pinhooking?

The purchase of thoroughbred horses, either privately or at public auction, at one stage in their lives and reselling them at another stage for profit is considered a pinhook. Spruce Lane Pinhook has an annual weanling (thoroughbreds less than 1 year old) to yearling (thoroughbreds that are 1 year old) pinhook partnership. We begin with purchasing young thoroughbreds from the months of November through January. After we buy, we will turn them out at Mike and Natanya McMahon’s Spruce Lane Farm to mature through the winter and spring. Beginning in early summer the horses will enter sales preparation with an exercise and feed program to aid with their development into athletes. Our goal is to place each horse in a yearling sale that will optimize their profitability based on their pedigree and physical conformation.

A $25,000 investment in the Spruce Lane Pinhook, with a 100% annual rollover

Our Investment Strategy

  • We seek to arbitrage the value discrepancies between the weanling and future equine sales markets, also known as “pinhooking” by leveraging our deep knowledge and skills to target elite equine athletes and sell them profitably in forward markets
  • Place weanlings in a yearling sale where they will sell at or above the average sale price, thereby achieving a positive ROI
  • Leveraging our expertise and successful eight year track record by increasing our capital under management
  • Management has experience in investing and managing “pinhooking or other trades” across multiple economic and equine markets

Our Market Analysis

  • The thoroughbred industry operates outside the general economy. It often lags behind on the fall and recovers quicker
  • Foal crop has declined while purse structures have increased leading to a higher cost of goods
  • Our research indicates that the market can easily withstand an investment of $2.5mm and that that investment can in turn be sold profitably in the short term

Weanlings as an Asset Class

  • The attraction of weanlings as an investment is that they provide an opportunity for portfolio diversification into an area that has historically and currently provides high returns and has shown a low correlation to other asset classes
  • The experience and knowledge of Spruce Lane Pinhooking’s management enables them to identify elite equine athletes for investment at an early age
  • Historically the elite equine athletes have provided significant financial returns and given market trends and opportunities, management expects it to continue to do so

Fund Structure

  • Structure: Limited Liability Company (LLC)
  • Maximum Fund Size: $2.5 million
  • Minimum Investment: $25,000
  • Founded 2006: 8 year operating history
  • Funds Due: November 5th, 2014
  • All funds collected will cover purchase and expenses for the term of the investment

Our Management Team

  • McMahon & Hill Bloodstock LLC
  • Deep knowledge of the equine markets – over $30MM of purchases in the public markets over 13 years, representing nearly 700 horses
  • Substantial private market sales representing over 250 transactions On going and up to the minute research on global racing results which directly impact intrinsic value of weanlings at auction
  • Access to one of the leading thoroughbred veterinarians with unparalleled knowledge of cutting edge equine veterinary technology
  • A thorough review of ALL market candidates which yields superior bidding strategy
  • A refined decision making process, the results of 16 years of working together which provides solid, rational purchase decisions

What Makes Us Different

  • Integrity and honesty are our core principals
  • Similar to our Bourbon Lane Racing Stable, we invest in each pinhooking LLC at the same level as our partners.
  • We represent six generations of horsemen, our reputation is too valuable to risk for any one trade
  • Our goal is to conduct our business profitably, while maintaining the highest level of integrity and transparency in the industry
  • Thorough understanding of the market through 15 years of market volatility while remaining profitable
  • Proven and tested method for targeting elite equine athletes
  • Our unique pre-purchase strategy targets individuals who have the potential to return multiples on their purchase price

The Facts

  • Management compensation: 2% of purchase and sale price, 20% of true net profits
  • Investment includes expense budget
  • Managing members are responsible for all management decisions
  • All purchases are insured for mortality
  • Weanlings will board at Spruce Lane Farm, owned and operated by Mike & Natanya McMahon
  • Weanlings may be owned completely or in partnership with other clients of McMahon & Hill Bloodstock, LLC
  • Operating and Admission Agreements are available upon request
Click here to request agreements

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The Spruce Lane Pinhooking Partnership is our annual investment in young thoroughbreds. Starting in November we purchase weanlings to resell as yearlings. This is a great entry point for those interested in exploring the thoroughbred industry through a relatively stable investment that has a long history of providing strong financial returns.

We keep our partners up to date throughout the investment term with pedigree updates, general sire news and state of the industry insights. Additionally, you will recieve photos and reports on their progress as they mature. We continue to monitor all of our graduates throughout their careers both on and off the race track.

Spruce Lane Farm

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Spruce Lane Farm is owned by Michael and Natanya McMahon and was bought in 2005. The farm is located adjacent to WinStar, Lane’s End and Three Chimneys and at one time bordered all three. The soil is very desirable and the land is high providing excellent drainage. The farm was originally a Revolutionary War land grant to the Hedden family, who operated a beef and tobacco farm for many generations.

After renovations and construction of numerous large paddocks, barns, and a 60’ round pen , the farm is a perfect fit for the Spruce Lane Pinhook yearlings. The horses start in large groups and are separated off into pairs and then singles. Walking begins 90 days before the targeted yearling sale and after progressing to 40 minutes of walking exercise per day, 6 days per week, the round pen work commences. This is followed by ponying and swimming if necessary.

Our goal for the yearlings is to develop a smart, relaxed, physically sound and fit horse who is ready for tack and the track. Our boutique setting and high human to horse ratio and low horse to acre ratio make Spruce Lane Farm a favorite among buyers looking for the special hands on, natural approach. We invite your visit!

Email us for more information

Marketwatch: Jamie Hill on Sires, Pinhooking

Listen to the Bloodhorse Marketwatch podcast with Jamie Hill discussing stallions, pinhooking, and racing.

Click here to listen

Sign Up for our Newsletter

The Spruce Lane Pinhooking Partnership is our annual investment in young thoroughbreds. Starting in November we purchase weanlings to resell as yearlings. This is a great entry point for those interested in exploring the thoroughbred industry through a relatively stable investment that has a long history of providing strong financial returns.

We keep our partners up to date throughout the investment term with pedigree updates, general sire news and state of the industry insights. Additionally, you will recieve photos and reports on their progress as they mature. We continue to monitor all of our graduates throughout their careers both on and off the race track.

Top Yearling, Fasig-Tipton July 2014

  • Invest in the Best

    The first endeavor Mike and Jamie ever undertook was a weanling to yearling pinhook that ran a few years in the late 90’s known as the “Small Hope Bay LLC”, named after a popular but quiet resort in the Bahamas.   The partners purchased 3-5 foals per year and sold several decent horses at a profit. [...]
    Read more

Pinhook yearlings for 2017

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  • Distorted Humor-Salonsun (GER)
    Filly
    Pedigree

  • Lemon Drop Kid-Go Forth North
    Colt
    Pedigree

  • Into Mischief – Skygusty Colt Pedigree

  • Noble Mission (GB)-Kissin Party
    Filly
    Pedigree

  • Pioneerof the Nile-Leo’s Pegasus
    Filly
    Pedigree

  • Tapit-Colonial Flag
    Filly
    Pedigree

  • Tapit-My Conquestadory
    Colt
    Pedigree

  • The Factor-Curry Cat
    Colt
    Pedigree

  • Tiznow – Bow Bells Filly Pedigree

  • Tiznow-Summer Applause
    Filly
    Pedigree

  • Union Rags-Miss Emilia
    Colt
    Pedigree

  • War Front-Dynamic Feature
    Colt
    Pedigree