DealZone

Equine hedge fund tries to outpace the market

By Adam Pasick
April 21, 2008

bigbrown.jpgIf investing in hedge funds these days seems about as certain as betting on the ponies, why not a fund to buy and race thoroughbreds?

The New York Times reported on Monday that International Equine Acquisitions Holdings is raising $100 million for a hedge fund that will buy, sell, race and breed horses, charging management fees and taking a percentage of any investment gains. The founders, ex-Wall Street denizens Michael Iavarone and Richard J. Schiavo, want to take their company public by year-end.

IEAH wants to “remake the economic landscape of a multibillion-dollar industry,” the Times reported.

But there may be volatility afoot, literally: Big Brown, the fund’s most valuable equine asset and the current Kentucky Derby favorite, has suffered injuries to both of his front hooves. The 3-year-old has run only three races; a trainer fitted him with special glue-on shoes.

(Photo: Marc Serota for The New York Times)

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