TDN Q&A: Goncalo Borges Torrealba

In the autumn of 2013, Brazilian Goncalo Borges Torrealba and family acquired a controlling interest in storied Three Chimneys Farm and subsequently obtained the stallion rights to 2013 Champion 3-Year-Old Colt Will Take Charge (Unbridled's Song) and Grade I winner Strong Mandate (Tiznow), whose first weanlings hit the market this November. In addition to campaigning prominent runners such as 2016 GI Kentucky Derby third-place finisher Gun Runner (Candy Ride {Arg}) and GI Acorn S. winner Carina Mia (Malibu Moon), Three Chimneys recently bred or co-bred three of the yearlings who sold for over $1 million on the third day of Keeneland September. The TDN's Ben Massam spoke with Torrealba to learn more about his first three years at the farm and his outlook for the future.

TDN: Between the accomplishments on the racetrack and your recent success at the sales, I'm sure this has been an exciting year for you. How have you enjoyed your initial time at Three Chimneys, and what are your primary goals going forward?

GT: We are committed and passionate about our investment in Three Chimneys. My wife and I have moved to Kentucky and my son just started at the Lexington School. Our goal is to focus on building the stallion operation to its past glory, whether it's buying a stallion prospect off the track or to breed him and race him with partners or ourselves. We are on a mission to find the next Seattle Slew. I sold Cara Rafaela carrying Bernardini a long time ago. He is the poster child for what we are looking to do…We are committed to buy and breed the best dirt racehorses that we possibly can. We have built a core group of top quality mares that will give us the best chance to do that, but we're also very commercial, and sell our product at market–that has always been in our plans–and we proved that in 2015 by selling over $12 million worth of yearlings and 2-year-olds. We're off to another good start this year.

TDN: You mentioned partnerships. You have notably formed some unique stallion partnerships with Willis Horton on Will Take Charge and with Dogwood Stables on Palace Malice–is this a strategy you're using with younger horses as well as stallions?

GT: If someone likes one of our yearlings and wants to partner, we are happy to do it because we believe in our product. Take this year's Derby for instance. We placed with Gun Runner, a future stallion for us, whom we own in partnership with Ron Winchell and Ben Leon. We believe in partnerships and were able to stay in for a leg or a half of several colts that sold in September…We are noticing that we are not alone in the partnership game–it seems to be a trend. Sharing risk and reward equally with a partner is very rewarding, when the horse is a real runner. You get to celebrate together and you limit both parties' downside if it doesn't work out.

TDN: What do you see in Gun Runner that makes you think he will be a successful stallion?

GT: Gun Runner is a very typical example. Although we did not breed him, we bought into him as a yearling and also acquired the whole family when we did the partnership with Besilu [Stables]. He's already from the family of a very successful stallion who was deceased prematurely, Saint Liam. And of course, Candy Ride is a bloodline that is open to all the A. P. Indy, Mr. Prospector and Northern Dancer lines. It's a great cross for every good American bloodline there is. The physical is second to none, the pedigree is great. With his race record, he might have been a little unlucky, but he was third in the [GI Kentucky] Derby and the [GI] Travers S. and he has a couple Grade II wins. We think there is a Grade I in his future. He's the whole package…He's a horse we want to send our best mares to.

TDN: Lane's End has made headlines this year buying well-bred and pricey colts as stallion prospects–has Three Chimneys been looking at juveniles or yearlings to buy at auction with the same goal of adding to your current six-stallion roster?

GT: Most definitely, that's what we have been doing since we started. The stallion market is as competitive as it gets, so you need to be on every side of it–horses in training that will be future stallions. We have assembled a quality broodmare band, and each mare could individually produce a stallion. Everything we do, at the end of the day, goes toward filling up our stallion barn with the best quality there can be… Our plan is definitely stallions, stallions and stallions.

TDN: Stud fees have been on the rise in the last few years. Do you have any concerns about the market's ability to support increased production costs?

GT: That's a very important concern we have. There is no way that we're going to be successful if our clients are not happy. We think about that at our stallion barn every day, and we believe we have great horses that are good buys….Today at Three Chimneys we are very price sensitive. While we paid a lot for Will Take Charge, we are not looking for payback in the first three or four years. We want to make him the best stallion over the long haul. We're very proud of our stallions…I think our customers will start getting rewarded, and this November we'll see the first foals by Will Take Charge and Strong Mandate at auction. I think we're in for a good November.

TDN: I know you have placed an emphasis on finding producers who excel on dirt, and by association, American racetracks. Can you talk a bit more about how you're honing in on these types of broodmares?

GT: We are focusing even more than ever on producing dirt stallions with our mares, even though I personally do enjoy turf racing. Therefore, we will be selling a number of top quality turf fillies and mares to supplement and highlight our November consignment. It is important to always be in the market trading and we will be doing that as well.

TDN: About how many broodmares are in the band now and what percentage of the foal crop will be seen at public auction?

GT: We have 80-something now, but our target is to cover about 60 mares this year. We tend to take the majority of our product to the market, both to raise capital and to find prospective partners on colts we hope will become stallions one day.

TDN: One of your in-house broodmare prospects is Carina Mia. Will she stay in training next year? Are there any Three Chimneys stallions you think would suit her?

GT: That's what we're hoping for. She's from one of the three top South American families. I could go on and on giving examples of South American families that have produced in America and Europe…I believe very much in this outcross. That's something that has happened, and will happen. That's how America was built, at the end of the day. As for next year, that depends on Bill [Mott]–if he tells us that we can win a couple more nice races, we would love to keep racing her. But if she retires, she will be a very interesting addition. It would be a close call between [sending her to] Will Take Charge and Palace Malice.

TDN: Looking back at September, did you see any market trends that surprised you or caused you to change plans at all?

GT: Not really, the first two days did not feel that strong–but our better horses were on the third day and it caught fire, they all sold well. It's a very competitive market out there for a good horse, and at the middle of the market, it felt like there was still a lot of competition.

TDN: What has been the most rewarding part of your experience since taking over a controlling interest at the farm? And the most challenging?

GT: At the end of the day, the people at Three Chimneys are the secret to this resurgence of the farm. People recognize that a big effort has been done since we took over, and I truly believe that it's really teamwork. The people that are with us are the greatest. It's what I'm most proud of. If you go to September, and last September, it's really amazing how our product has been received. And that kind of recognition doesn't come lightly, because people are putting their money where their mouth is. They're not only saying we're doing a good job–they're paying for it. It's rewarding to be associated with a world-class farm with world-class horses and world-class people. It's racing at the highest level there is.

As for a challenge, I always thought the stallion market was competitive. It's actually three times more competitive than I thought.

TDN: Obviously, you have a long-term outlook for your investment in Three Chimneys. What are you looking forward to in the coming months?

GT: We have some important strategic changes on the horizon with the goal of further enhancing our stallion roster. We plan to sell our Fayette County division and will concentrate our operations in Woodford County where our stallion operations are based, and where we have almost 900 acres. This will allow us to be more efficient, and keep us focused on our goal of offering both owner/breeders and commercial breeders the best stallion options in the market. The most exciting thing ahead is that we will showcase a number of impressive weanlings by Will Take Charge and Strong Mandate this November. We are proud of our product and want to show breeders the level of support that we put in to help make our stallions a success.