Brad McCarthy Bloodstock Partners with Leading Trainers Gai Waterhouse and Adrian Bott.

In a market that continues to attract global attention, Brad McCarthy Bloodstock is redefining the approach to thoroughbred investment with the launch of its Bloodstock Fund—an Australian Regulated Unit Trust designed to unlock high-return potential while mitigating risk for wholesale and sophisticated investors.

The fund provides a unique entry point into the lucrative world of racing and breeding by strategically investing in a diversified mix of proven stallion assets and elite yearling prospects, both domestically and globally. Governed by Australian law, the fund ensures the highest levels of compliance and investor protection, offering a trusted pathway into an asset class traditionally reserved for industry insiders.

“The objective of the fund is to generate Alpha for both wholesale and sophisticated investors,” says Brad McCarthy, Founder and Principal of Brad McCarthy Bloodstock.

“We do this by actively identifying and investing in value opportunities within the Australian and New Zealand racing and breeding industries. Our primary focus is on acquiring and developing genuine stallion prospects and elite racing stock.”

The Southern Hemisphere has emerged as a powerhouse in the thoroughbred world, driven by a wave of international demand. Bloodstock Fund provides a rare gateway for global breeders to gain exposure to this momentum, with the Fund already attracting attention through high-profile acquisitions.

"Gai Waterhouse and Adrian Bott form an outstanding training partnership and are among several top-tier trainers selected to support the Bloodstock Fund's investment strategy. We often place horses showing early two-year-old potential with Waterhouse/Bott Racing, leveraging their expertise in developing precocious talent.

The Bloodstock Fund collaborates with a diverse group of training operations to fulfil its broader mandate—strategically allocating horses to trainers who can deliver strong results for our investors while maintaining the highest standards of care and equine management throughout each horse’s racing career." McCarthy says.

Post Inglis Easter Sales: “We were delighted to purchase Lot 134 for our Bloodstock Fund partners,” McCarthy announced.

Lot 134, a filly by Justify out of Sahara Breeze, was acquired for AUD $475,000 at the 2025 Inglis Australian Easter Yearling Sale, a market widely regarded as both strong and highly competitive.

“I first saw this filly during the on-farm inspections at Sledmere Stud in the Hunter Valley. She was paraded by Royston and Catriona Murphy and immediately stood out as one of the highest-rating Justify yearlings we’ve seen this year,” McCarthy recalled. “We ran her through our internal bio-mechanics and pedigree models, and both came back with elite-level scores.”

The economics behind the acquisition also demonstrate the Fund’s commitment to value investing.

“As a physical type, Lot 134 really impressed us. She’s an athletic mover with a high-frequency stride, excellent hock width, and an exceptional pull-through in the hindquarter. Our proprietary models scored her physical traits very highly,” McCarthy noted.

The filly hails from Sledmere Stud, a farm Brad McCarthy Bloodstock rates among the best in the country for production quality, infrastructure, and overall performance.

“Being on-farm each year is a vital part of our process. We assess everything—from terrain and feed to facilities—then overlay that with traditional data metrics to ensure we’re making fully informed decisions,” McCarthy explained.

Looking ahead, the fund sees tremendous opportunity in building new partnerships, especially in emerging markets such as the Philippines.

“Justify will stand for $250,000 USD (approximately $410,000 AUD) this season in the U.S. When you factor in the costs to bring a mare or yearling to Australia and complete a full prep, the $475k price point for this filly offered clear value. We target international sire arbitrage opportunities, and this was a textbook example.”

Earlier this year, a similar strategy saw the Fund secure Lot 179 (Wootton Bassett x Aubade) for AUD $400,000 at the Magic Millions Gold Coast Sale—again aligning with international stallion trends, as Wootton Bassett’s 2025 service fee rose to €300,000.

Beyond pedigree and pricing, physical conformation remains at the core of Brad McCarthy Bloodstock’s selection philosophy.

As Bloodstock Fund continues to expand its global reach, the team remains focused on performance, transparency, and strategic acquisitions that deliver long-term value.

“And we look forward to welcoming them to Australia as her two-year-old career takes shape—and well beyond.” McCarthy said.