Shrewd moves - in the sales ring - Adrian Gonzalez -high-end bloodstock at public auction - strategies for buying and selling at the yearling sales
/By Annie Lambert
Bloodstock agents all have a formula, a routine, pedigree preferences and conformation predilections, which must be weighed against current market conditions and trends as they approach every sale.
Whether you are purchasing horses for resale, to race or breeding stock, buying (or selling) Thoroughbreds is an intense business. Choosing the right weanling or yearling to pinhook is every bit as precarious as picking the right 2-year-old to run.
Adrian Gonzalez, founder of Checkmate Thoroughbreds, is no exception. The 41-year-old horseman was not born into a family with deep equine ties or historic roots. He does, however, have a family story that reads something like a cold war novel.
Gonzalez’s grandfather, Roberto, was a Cuban orphan raised in the government system and became an Olympic-caliber gymnast. Roberto was a member of the Cuban National Olympic Gymnastics Team during the Pan American Games in Guatemala City, Guatemala. During the competition he met his future wife (a student at the university where the games were held), defected from Cuba and started a family. When Gonzalez’s father Erick was 12, the family immigrated to the United States.
Adrian grew up around backyard horses in a small northern California town. While obtaining a degree in animal science at California Polytechnic University in San Luis Obispo, he paid his bills by breaking yearlings at Cardiff Stud. Team roping and cowboying on a 23,000-acre cattle ranch may not have prepared the young Gonzalez for his first foyer into Thoroughbred racing.
“The first morning I walked into the tack room and there are only flat saddle—English tack,” he recalled with a chuckle, shaking his head. “I honestly didn’t even know how to tack them up, but the guys showed me.”
Cardiff was sold to game show host Alex Trebek, who changed the name to Creston Farms and focused solely on breeding. Gonzalez hung up his tack and became a stallion groom and later stallion manager. His wealth of experience in the industry continued to grow.
“When the breeding season ended I switched gears and focused on the development and growth of weanlings and yearlings,” Gonzalez explained. “I became enchanted by the Thoroughbred business and put all my focus into figuring out how I could do this for a living.”
Pedigrees Are Personal
Gonzalez did figure out how to build the Thoroughbred industry into a career. When Creston Farms was sold again and became the short-lived Windfall Farms, he seized on the demise of Windfall, leased a portion of that farm and started his own bloodstock business. Checkmate Thoroughbreds came to light in 2005. In 2013, Checkmate moved to its current 66-acres in nearby Parkfield.
During those early years Gonzalez dove into operating a training facility, breaking yearlings, foaling mares and offering sales consignments. When he and his wife Erin (who has an agricultural business degree) analyzed their large cash flow, they found the actual profit margin boiled down to a couple well-sold sale horses.
“It happened that we were profiting on one or two horses that we came up with ourselves,” said Gonzalez with a laugh. “We could have had just those few horses instead of the hundreds of others. Slowly we phased down on the breaking and training to focus on the sales—the pinhooking side of it.”
Personal preferences in bloodlines as well as following industry trends are not unique. Prior to readily available online statistics, Gonzalez researched and put together spreadsheets to assist his pinhooking selections. Choosing horses for resale is easier these days, but it is easier for everyone.
“When the catalog comes out, I do a lot of research,” Gonzalez explained. “Blood-Horse puts out a valuable tool called The Auction Edge. It shows the history for every horse in the family, what they sold for, which are not on the regular auction page. This past November we bought an inexpensive weanling by Overanalyze for $2,500.
“There wasn’t much black type on the catalog page, but with a little research in Auction Edge you could see that there was an Uncle Mo 2-year-old half-sibling that had just sold at [Ocala Breeder’s Sale] March for $525,000. Knowing that there was the potential for a big pedigree update will help increase the value of your horse without you having to actually do anything to the horse.
“Coincidentally, a few months after we bought that baby the Uncle Mo filly won her first two starts in Japan by a combined 20-length margin. After that the phone was ringing off the hook, and we sold it privately for a whole lot of money.”
Gonzalez pointed out that is one reason he spends more time digging through the sales results of the families than looking at the black type on the catalog pages. The pre-sale diligence can also expose a negative. …