Hedge Magazine

Rebecca Newman - November 2008 - 01/11/2008

It is a brilliant Autumn day. As guests arrive at Highclere Castle, The Hon. Harry Herbert greets them with bonhomie and steers them into one of the Highclere Stud farm buildings. Before the yearling parade begins, there is time to chat over a hot sausage, and a cup of coffee sharpened with a slug of brandy. There are many advantages for people who chose to run racehorses through one of the Highclere syndicates. By no means the least of these is the hospitality Herbert provides, from lunches in Highclere's library to nights in Newmarket's Jockey Club. He will take boxes at Ascot, ready to celebrate and commiserate - and is on hand 24/7 to keep you updated on the progress of your horse.

This is not to say that Herbert relies on old school charm to attract his members. Along with his brother-in-law John Warren, he has put together a sophisticated and hugely successful stable. While Highclere is a relatively small operation, with only seven or eight new syndicates each year, in the owners' table (of prize money won), they are only £30,000 behind the Godolphin stable, upon which owner Sheikh Mohammed lavishes millions of pounds. This year alone they have won more than £1 million in prizes.

"We have been very successful since we began," says Herbert. "We had a champion in the first group and have run consistently top horses since." He compares Highclere to a luxury goods company, owning 52 potential top class horses, spread between 32 syndicates, each of which has 10 to 20 members. Shares cost from £9,750 to £36,950 depending on the calibre of the horse, and where it is being trained. An example of their past success is a filly called Petrushka. Bought as a yearling in 1998 for 110,000 Guineas, she went on to win the Kildangan Stud Irish Oaks and became the first ever syndicate owned Classic winner. She was sold in 2000 for $5.25 million at a profit of £155,000 to each shareholder.

"There is no expectation that this is an investment, however," Herbert continues. "You don't come into a syndicate to make money - but many do return a decent sum. Certainly, it is a very cost effective way to own a horse. A horse costs £30,000 a year to train, so joining a syndicate allows you the pleasures of owning several horses, at a fraction of the price of sole ownership."

One of those to make money is Mike Tindall, the English rugby player who lives with The Queen's equestrian grand-daughter Zara Phillips. He took a share in a syndicate last year which included the horse Collection. It won The Hampton Court Stakes on Ladies Day at Royal Ascot and was recently sold for £676,000 to an owner in Hong Kong. He has reinvested this year into the Touchstone syndicate. "I hope this time I can make the races," he smiles. "When Collection won at Ascot I was in New Zealand, watching the race by myself on my laptop in the middle of the night."

According to Herbert, there is no typical person in a Highclere syndicate. "There are all sorts: lawyers, City folk, doctors, Philip Richards of RAB Capital has had three or four top class horses: his City life may not have gone so well but his horses have been fantastic." Indeed, the credit crunch has worked in Herbert's favour this year. "Some special animals have fallen through the gap in the last few months. We have bought at prices we couldn't believe."