Bloodstock investing is fairly niche but if you like a flutter on the horses here’s another way of doing it – although you will have to decide whether it’s any more profitable than trotting down to the bookies.
An ex jockey and established bloodstock (in this instance racehorses for breeding) agent has opened up investment in its foal purchasing business through an enterprise investment scheme (EIS).
Bloodstock investors are anticipating increased interest in the forthcoming 2019 foal purchasing season, as clients seek to diversify their portfolios amid gloomy economic forecasts for mainstream asset classes, according to JR Bloodstock Investments (JRBI).
It describes foal purchasing (a process named as pinhooking), normally carried out in the autumn of each year (foals to be nurtured and sold the following year for profit) as having generated healthy returns in recent years. JRBI typically buys between 20 and 30 foals each year.
It says for the 2017/2018 season, JRBI investors received net profits of 12% after the deduction of costs, sale charges and auction commissions. Previous year returns it says were 23% net return in 2016/2017 and 30% in 2015/2016. By comparison, it compares this to FTSE 350 (UK’s 350 largest companies) returns of -9.5% in 2018, 12.9% in 2017 and 16.8% in 2016.
To read more head to https://www.whatinvestment.co.uk/bloodstock-investing-eis-offers-a-way-to-bet-on-the-horses-2616656/