What do the dot-com crash and the Hambletonianhave in common? They are both part of what John Livi-akis calls his biggest mistake in racing. “I will never for-give myself for what happened,” he admitted.

Liviakis, 54, who has a leading investor relations firmnear San Francisco, deals in the fast paced, high pressureworld of the financial markets, helping publicly tradedcompanies generate broker interest in their stock. In assist-ing his handful of select clients, he deals with events everyday that can have ramifications of millions of dollars. Butthere came a day about a decade ago when his primarybusiness and his business of horse racing intersected.

“In the stock market crash, during the so-calledinternet bubble, that’s when I had to start selling horses.I had 122 at my peak,” said Liviakis of the plunging finan-cial markets at the end of 2000 through 2002. That’swhen he had a huge stake in breeding, owning approx-imately 40 broodmares.

As he was liquidating, Perretti Farms contacted himto purchase the by-then orphaned weanling GracefulTouch. She was the only daughter of Act Of Grace, a mare

While he may lament selling the dam of thisyear’s Hambletonian winner, John Liviakishas some consolation in owning this year’stalented freshman filly Pretty Katherine.By M. Kelly Young

Liviakis had purchased privately in 2000with the help of Jimmy Takter and whounfortunately died later in the year fromchronic colic.

“That was a tragedy for us,” he said ofthe broodmare’s death. “She was one ofthe greatest trotting mares in history. Whatpeople don’t know is not only was she thewinner of the World Trotting Derby, aworld champion and a daughter of ValleyVictory, but in person, she was royalty.Even when she moved in the field she hadthe most beautiful trot, she was so efficient.

“It was really a new breed, a totallydifferent trotting breed than anyone hadseen before, but that’s because Valley Vic-tory changed everything back then. I thinkI paid around $800,000 for her and shewas worth every single penny.”

Liviakis said he wanted to keep Grace-ful Touch, “but the market kept crashingevery day. It was $173 million in stock mar-ket losses for me so I had to quickly sell myhorses to cover my expenses.”

She was sold to Perretti, became astakes winner in her own right winning$192,000, and then was retired to thefarm’s broodmare band. She has now pro-duced four foals averaging $274,000 whenthey sold at public auction.

“I was forced to do it, but sureenough I sell her and it turns out that this

year she is the dam of the Hambletonianwinner Muscle Massive and the MerrieAnnabelle winner Thatsnotmyname, whowon on the same day.”

Takter trains Muscle Massive and Livi-akis, heartbroken but not bitter, creditsTakter and his wife, Christina, for provid-ing him the opportunity to be connectedwith Act Of Grace and then being astuteenough to purchase her grandson.

But Liviakis can’t lament his loss for toolong as he is riding high on the wave of whathe calls his best performer ever. PrettyKatherine, a two-year-old daughter of Rock-nroll Hanover, is headlining in her divisionwith wins in five of six starts and she equaledthe 1:50.3 world record in her elimination ofthe Shes A Great Lady at Mohawk in August.

The only blemish in her career on thetrack is a second-place finish in the$688,000 final of that event. Liviakis, whowatched the race remotely, said the strongheadwinds and sloppy track brought onby the path of Hurricane Earl punished heron the front end.

Pretty Katherine was one of thefavourites heading into the Breeders

Crown but a lost and out of gas truckdriver forced her to be scratched beforethe eliminations at Pocono Downs as shemissed the retention time by minutes.

“It was just hard to believe when I gotthe call telling me that the driver of thehorse van got lost coming from ShowplaceFarms. Apparently, he had directions and aGPS but then ran out of gas and could notget there on time. Of course it would nothappen with a $500 horse,” said Liviakis.

“Truthfully, I wanted to cry it was soemotional. But I still trust Casie (trainerCasie Coleman) completely. It was not herfault and I understand that driver hasbeen fired. But it was a Murphy's law sortof thing. So now she has nothing until theThree Diamonds at Woodbine (elimina-tions October 29 and final November 6).”

Purchased for $120,000 as a yearling,the filly has $300,000 earned to date. Bredby Perretti Farms, she’s the second foal ofthe top race mare Fox Valley Shaker, a win-ner of $468,972 in her career. Ironically,she also finished second in the 2004 ver-sion of the Shes A Great Lady Stake (toCabrini Hanover).

October 2010 • The Harness Edge

LIVIAKIS LOVES: HORSES & STOCKS

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Pretty Katherine, named for one of Liviakis’ three daughters, is one of the topfreshman pacing fillies in North America this year. She’s provided her owner withgreat happiness and heartbreak this year although the latter wasn’t her fault.

Then you should know that half of all the foals born and raised at Vieux Carre Farms that are now 2-year-olds have already taken records in 2010, over 40 including these freshman standouts:

By ALLAMERICAN NATIVE776 REFLEX AFFECT, bc . . . .Penny For Nickel-Artsplace828 AMERICAN GRAFITTI, bf . . . . .Rewound-No Nukes881 FLY AWAY, bc . .Some Kinda Dream-Forrest Skipper962 PEACE MARCH, bc . .Western Dove-Western Hanover

By ANDOVER HALL475 GO TAPAIGH, bc . . .Armbro Gaelic-Dream Of Glory

1143 MIKESBROTHERFRANK, brc . .Elena Victory-Valley Victory685 MCATTEE, bc . . . . . . . .Madame Volo-Yankee Glide

By ART MAJOR930 MAJOR MARCUS, bc . . . . .This Fool Rocks-Life Sign

By BETTOR’S DELIGHT113 SILK PURSE, blkf . . . . . . . . . .Silky-Western Hanover

By BROADWAY HALL591 VOLUPTUOUS GIRL, bf . . .Hawaiian Delight-Muscles Yankee

By CAM’S CARD SHARK1080 TRUMP PLAY, bc . . . . . . . . . .Charlie Says-Albatross

By CANTAB HALL787 GREEN PEACE, bc . . . . . . . .Pinestruction-Pine Chip

By CLASSIC PHOTO1016 VASADU, bc . . . . . .Armbro Norway-Speedy Crown

680 VELOCIRAPTOR, brc .Lookin At You Babe-Malabar Man

By CONWAY HALL534 GENOISE, bf . . . . . . . . . . . .Cream Pie-Malabar Man

By CREDIT WINNER349 SAVEMYMONEY, brf . . . . . .New Day-Conway Hall

By DONATO HANOVER36 FAVORITE PANTS, bf . . . .Kosmo Girl-Sierra Kosmos

331 DON’T SAY DON’T, bf . . . . . .Missy Lavec-Mr Lavec120 VIVACIOUS LADY, bf . .Southwind Wake-Muscles Yankee

By DRAGON AGAIN1018 SHOOTOUTTHELIGHTS, bf . .Armbro Pomme-Dexter Nukes201 TELL THE TRUTH, bf . .Babe Ruthless-Walton Hanover516 COUNT FLASH, brc . . . . . . . . . .Cambloid-Cambest

1074 DRAGON OR ANGEL, bf . .Catch An Angel-Western Ideal33 RUBY RED, bc . . . . . . . . . . . .Kiss My Lips-Artsplace

651 EASY AGAIN, brc . . . . . .Kuklapanandollie-Artsplace824 FRANKIE AND DANA, bc . . . . .Real Fool-Real Artist830 RING AGAIN, blkf . . . . . . .Ring Pop-The Panderosa402 TOGETHER AGAIN, brc . . .She’s The One-Matt’s Scooter132 DRAGON MOON, bf . . . .Sunone-Western Hanover

By FOUR STARZZZ SHARK667 ALLSTAR LIFE, bf . . . . . . . . . .Lifeandtimes-Life Sign671 ALLSTAR LEGEND, bc . . . . . .Lifetime Gal-Artiscape714 ALLSTAR BLUES, bc . . . . .Miss Lady Blues-Artsplace

By GLIDEMASTER315 WHITE RUSSIAN, bc . .Malabar Memories-Malabar Man

By I AM A FOOL593 MOTLEY FOOL, bc . .Hawaiian Pamper-The Panderosa

By MCARDLE769 MOUNT JOY, bf . . . . . . . . . . .Panevolence-Artsplace

By MUSCLES YANKEE552 HELIOS, bc . . . . . . . . . . .Enjoy The Sun-Enjoy Lavec

By REAL DESIRE608 STATE TREASURER, brc . .Ideal Treasure-Western Ideal611 DIESAL FITTER, bc . . . . .Imattculate-Matt’s Scooter638 REAL GAME, bf . . . . .Just A Game-Western Hanover

By ROCKNROLL HANOVER519 MANCHURIAN, bc . . . . . . . . . . . . .Camus-Artsplace249 ROCKNDREAM, bc . . . . . . . .Dreamiscape-Artiscape290 ROCKING JEN, bf . . . . . . . . . . .Jate Mate-Jate Lobell42 SUMMER SUNLIGHT, bf . . . . . . .Light Up-Artsplace

434 TWO BEERS AWAY, bc . .Up Front Dragon-Dragon’s Lair

By SJ’S CAVIAR1041 GOOD GOLLY, bf . . . . . . . . . . . . . . .Bearakas-Prakas1113 WINE MY DEAR, bf . . . . . . .Dalwhinnie-Super Bowl757 CASPIAN BOKO, bc . . .Odessa Drummond-Jobie Tempest976 CHIPS N CAVIAR, bf . . . . . .Winky’s Chip-Pine Chip

By TELL ALL1096 COMPOSER, bc . . . .Classical Lady-Western Hanover

By THE PANDEROSA1030 P GIRL, bf . . . . . . . . . . . . . . . . .Artstopper-Artsplace

568 HEATHERS DELIGHT, bf . .Fool That I Am-Jenna’s Beach Boy

By WESTERN IDEAL69 SKYS IDEAL, bc . . . .Neverhaveneverwill-Big Towner

363 COOPERS BEACH, bc . .Orchid Beach-Jenna’s Beach Boy

By WESTERN TERROR623 BACK TO THE WEST, bc . . .Its A Cam Lie-Camluck

By YANKEE CRUISER634 CHROME OVER, bf . .Jewel Princess-Precious Bunny312 CHROME CRUISER, bc . . . . .MA Foi-The Panderosa720 TREATY CREEK, bc . .Modern Medicine-Jenna’s Beach Boy882 SWEETHEART DANCE, brf . . .Somkindasweetypie-Life Sign448 WILD CRUISE, bc . . . . . . . .Wild Helen-Beach Towel

Dr. and Mrs. John M. Egloff • 305 Swift Run Rd. • Gettysburg, PA 17325Mark Egloff, General Manager • Dan Coy, Farm ManagerOffice: (717) 334-8313 • Barn: (717) 334-5790 • www.vieuxcarrefarms.com

Multiple stakes winning 2 & 3YO MALICIOUSp,2,1:51.3f ($439,708) Selling his Bettor’s Delight

full sister Hip 113, also a half-sister to MS MALICIOUS p,2,1:53.2-’10 ($165,553)

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Yearling pedigrees updated daily atwww.vieuxcarrefarms.comLook for yearling videos in early October

Multiple stakes winner & PASS ChampionWINKN ATCHA p,2,1:51.4f-’10 ($220,438)Selling his Dragon Again full brother Hip 33

Multiple stakes winner & 2nd in the MetroFEEL LIKE A FOOL p,2,1:53.1f-’10 ($298,193)

Selling his The Panderosa half-sister Hip 568

PA Stallion Series Final winnerDRACONIAN

p,2,1:53.3f-’10 ($50,875)Selling his Allamerican Native

half-sister Hip 828

Want To Improve Your Odds?

Multiple stakes winnerDRAGON DANCE

p,2,1:54.3f-’10 ($42,740)Selling her Dragon Again full

brother Hip 651

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Selling at Harrisburg November 8 – 11

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Pretty Katherine, is named after oneof Liviakis’ three daughters. He namesmost of his horses after his wife, Renee,son Thomas, or daughters, which alsoinclude Caroline and Audrey. But thenamesake of his daughter Katherine washis top pick in the sales last fall. Because heis so committed to his career, getting tothe office at 5:15 a.m. and hardly everleaving his desk while the markets are insession lest he miss a critical client need, hecan’t get to the yearling sales (and inciden-tally, has never seen Pretty Katherine inperson).

“In a sense, it’s a mistake that I’m notat the sales in person, but on the otherhand, I’ve got such a critical businesshere,” he explained. “I’ve been a sticklerabout not taking a vacation, about notleaving for lunch about not going towatch my beautiful horse live if it’s goingto interfere with handling important busi-ness here and regretting that.”

Instead, Liviakis and his agent andfriend, Charlie Karp, worked together tonarrow down about 2,000 yearlings lastyear to a list of just six that they were will-ing to bid on. Liviakis is a student of pedi-gree and conformation and uses yearling

videos extensively. “Those are profoundly important to

me. If it wasn’t for the videos, I wouldn’tbe active in the yearling sales,” he said.

While he says the videos tell much ofthe story of conformation, character andease of movement, Karp views the individ-uals they agree on in person, slimming thelist down even further.

“The vast majority of horses areflawed. They’re not flawed in God’s eyes;just because they’re not good athletesdoesn’t mean they don’t have worth,”explained Liviakis. “But there are only somany elite athletes in the world for theirspecies and when it comes to the cold taskof sorting out the athletes you have to beable to evaluate them.

“The biggest mistake is being sloppyand thinking a horse is going to be good,because the majority are flawed from aninvestment standpoint. There aren’t 55 or80 or 1,000 champions, there are only one

or two a year. If you are liking too manyhorses it means you aren’t being discrimi-nating enough.”

Liviakis’ experience in selectinghorses comes from being an early studentof racing. When he was 17 his father tookhe and his sisters to their first race at Cal-Expo and Liviakis fell in love with racingimmediately. Granted, it was a Thorough-bred race, but that didn’t matter. Stan-dardbreds were much more prevalent atCal-Expo and young Liviakis began attend-ing nightly and studying the racing pro-gram while making deliveries for hisfather’s business during the day.

As a 10 year-old, Liviakis becameengrossed in the financial markets, invest-ing the money he earned working for hisfather into stocks, harassing his broker foranswers, and daydreaming in class aboutreports from public companies.

Seven years later he threw himselfinto harness racing just as completely,

October 2010 • The Harness Edge

LIVIAKIS LOVES: HORSES & STOCKS

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It was with mixed emotions that Liviakis watched Muscle Massive’sHambletonian victory earlier this year knowing that he had sold the colt’s dam,Graceful Touch, a few years before to Perretti Farms.

The Harness Edge • October 2010

getting his trainer’s license and having hisown stable by age 20.

Perhaps because he didn’t have afamily tradition in racing he broke somerules of the day.

“Trainers back then, and still today,readily put a lot of boots on the horses,even if they don’t need it, just to protectthem,” said Liviakis, who stripped downthe weight on his horses and also usedlighter weight aluminum shoes instead ofsteel before many of his contemporaries. “Ialso didn’t warm horses up traditional trips.I thought that was illogical and simplyused the post parade to warm them up.”

He also was ahead of his timeemploying therapeutic regimes and usingnutritional supplements.

Racing at Cal-Expo and HollywoodPark, Liviakis came to know Joe Anderson,who later convinced him to invest in brood-mares in Illinois when Anderson moved hisbase to Chicago. At one time he had 40mares and was on the leading breeders listin the U.S. He sold those during the stockmarket crash, but even today still receivesthe occasional breeders award.

Anderson and another young horse-man at the time were frequent drivers forLiviakis’ stable.

“The best driver there at the time wassomeone who I encouraged to go East anddrive on the Grand Circuit because Ithought he was the most talented youngdriver I had ever seen,” reminisced the for-mer trainer. “He listened to me and endedup making quite a name for himself: RonPierce.”

After a learning curve, everythingcame together for Liviakis and he had asuccessful stable until he was offered posi-tions in finance he couldn’t pass up.

He went to work for the stock broker-age firm E.F. Hutton at age 23 and startedclimbing the industry ladder. He became astar broker, setting an all-time companyrecord in first month production and wasthe number one broker with less than twoyears of experience. After several otherpositions, he opened his firm, LiviakisFinancial Communications in 1986.

Just like his yearlings, Liviakis is verydiscriminating in the clients he takes on.Like a good handicapper, he is looking forthat little something no one else sees. Hehand selects companies with undervalued

stock and helps tell their story to brokersto raise their visibility.

“There really isn’t another firm quitelikes ours. Now I know that is hard to believeand that sounds boastful, but that is the gen-eral consensus out there,” he explained.

“The rewards can be really wonderfulbecause we’re paid in restricted stock, soas years go by and the company really hitsbig we make enormous amounts ofmoney occasionally, not often, but occa-sionally,” he explained.

“In between you end up doing a lotof blocking and tackling. You try to dowhatever you can to make sure that com-pany is successful because ultimately youhave to answer to the financial marketsand their shareholders.”

When he’s not working, Liviakisspends time with his family, is a student ofnutrition and working out, and even singsin his church choir. He manages his fourStandardbreds and also owns Thorough-breds, which he can see race live on occa-sion at Delmar or Hollywood Park.

He now has 42 Thoroughbred race-horses, all under the care of trainer

Melody Conlon, and 17 broodmares inKentucky. He began purchasing runners adozen years ago, but jumped in full scalefour years ago when he found Conlon,who shares his philosophy of feed andsupplement programs.

Though he is more heavily invested inthe Thoroughbreds now, Liviakis stillbelieves Standardbred racing makes moresense.

“The Standardbreds, economically, area better model, based on the high purses,weekly racing versus monthly racing, andthe Standardbred breed is a more sturdybreed,” he said. “The costs are also lower allthe way around, from farm bills, vet bills, tothe yearling sales. The risks are lower andyet the purse earnings are higher.”

While Liviakis doesn’t see himselfworking in his same high stress financialbusiness when he’s 60, he is finding it hardto imagine retirement. When that timedoes come, he plans for it to be marked bymore racing, more horse breeding andmore time with his family. For now he ishappy keeping his clients happy andwatching his horses from afar. �