Managing risk when investing in horses is always tricky. The fragility of these animals and the whims of fate too often can result in a devastating outcome for owners, riders and trainers.
Catherine Haddad Staller, based in Califon, N.J., and Wellington, Fla., knows well the ups and downs of the horse business. Twice the U.S. dressage team’s reserve rider for the World Equestrian Games, she has had many other accomplishments during more than three decades of being active in the industry.
Her most recent success was the selection of her home-bred seven-year-old Hanoverian, Vianne, to compete in the FEI World Breeding Championship for Young Horses in the Netherlands next month. Doing the riding will be 23-year-old Hope Beerling, an Australian being trained by Catherine. Vianne is the only American-bred horse representing the U.S. that is participating in the competition.
Vianne takes a good look at the flag she will be representing at the Young Horse Championships with Hope Beerling. (Photo © 2023 by Nancy Jaffer)
Along with her achievements, Catherine, 59, also has dealt with her share of crushing disappointments over the years, and had to figure out a way of coping with them.
What she learned has been instilled in the development of NorCordia, an innovative company started in 2021 whose platform is geared to “helping our horses find their best partners” and enabling those who invest in the concept to seek a profit. It is the “first sporthorse portfolio investment company,” Catherine explained.
The Nor in NorCordia is for Nordic, which she calls “a representation of value,” (her partners are Danish), while Cordia refers to “the assurance of heartstrings,” a commitment to caring in connection with the horses.
The company initially offers portfolios of 10 to 12 horses, and each runs for three years. When a horse is sold during that period, it is replaced in the portfolio. The company has the ability to turn over anywhere from 18 to 24 horses in one portfolio. Eventually, replacement is stopped, so at the end of the three years, the plan is for the portfolio to be empty so investors can collect, though Catherine is careful to emphasize that investment carries no guarantee there will be a profit.
The trainer added, however, she believes “something cataclysmic would have to happen to not make a profit with this model.”
Explaining how the company manages risk, Catherine explained, “If something goes wrong with one horse, we can make up the loss by selling other horses. Because we place the horses with professionals in (both) Europe and the U.S., we never have one complete portfolio with one trainer.”
Having the NorCordia horses at several stables is a way to reduce risk in the case of disease, fire or natural disasters, for instance. The horses are mostly dressage specialists, with some show jumpers in the mix.
The first portfolio was started with a capital investment of 500,000 Euros. The second was started with 1 million Euros and had 10 shares at 100,000 Euros each sold to investors by February 2023. Portfolio three was started with 2.5 million Euros.
While Catherine and her partners want to sell horses, of course, there is another priority.
“For me,” she said, “the number one thing is horse welfare. We have to sell horses, but I said to all three of my partners, `We will be a company that gives our horses the best care, the best nutrition, the best management and the best training. We will take every precaution we can that when one of our horses leaves the stable, it’s going to the best partner, and a partner for life.’ That’s why our motto is `Horses for Life.’ ”
While she knows many ethical horse dealers, she’s also known some in the business who weren’t.
“I want to show the world how compassionately you can put horses on the market and send them on to their next partners.”
The idea is to “create training in a horse that makes him valuable to someone.”
The people who buy shares, however, aren’t buying horses for themselves. Instead, they’re involved in an investment that they hope results in a profit at the end of the three-year term. When the first horse in a portfolio is sold, the money goes to pay for expenses and care for the horses. When the second horse is sold, the company invests in another horse.
Catherine Haddad with members of her team Hope Beerling and Bella Nye. (Photo © 2023 by Nancy Jaffer)
Catherine’s longtime friend Hope Greenfield, who was involved with finance before she retired, had to be convinced to invest in the second portfolio.
“I said ‘No, I don’t want to be investing in horses anymore,'” recalled Hope, who has owned eventing and dressage horses over the years. She personally owns four horses, but was wary of getting involved with anything horse-related that wasn’t for her use.
“I know it’s a risk,” she said about the investment, pointing out, “I’m a fixed income type of person.”
But her friend, June Brody, who like Hope had been a New Jersey stable owner, wanted to split the fee for a NorCordia share after talking to her financial advisor. He examined the concept and thought it looked good. Hope was impressed by his assessment.
They finally decided to collaborate on one portfolio share in a venture they’re calling LOL (for Little Old Ladies) Adventure. The pair enjoys watching the portfolio horses compete, though they have no personal or emotional involvement with them.
“It’s fun,” Hope said.
“It’s not like investing in Berkshire Hathaway.”
NorCordia’s profile will be raised at Dressage at Devon which runs Sept. 26-Oct. 1, presented by Kingsview Partners. A highlight of the Pennsylvania show, the Master Class Sept. 28 featuring Danish Olympic star Cathrine Laudrup-Dufour, will be presented by NorCordia. Last year’s class, with U.S. Olympic team silver medalist Sabine Schut-Kery doing the teaching, was very popular with spectators, who filled the stands looking for tips that perhaps could improve their own horses and riding.