[2] Bred in Texas by Marshall T. Robinson, Groovy was out of the mare Tinnitus and sired by 1976 Canadian Horse of the Year Norcliffe, who was a son of U.S.
Kimberly Hardy saddled the colt in his racing debut on September 2, 1985, and won the Forever Casting Stakes at Meadowlands Racetrack at a distance of six furlongs.
[5] Before his next start, Houston, Texas, real estate developer John Ballis paid $1 million for a half-interest in the horse.
In that race, the colt immediately took the lead and held it for the first three-quarters of a mile before tiring badly and finishing sixteenth and last, 49 lengths behind winner Ferdinand.
[7] On the same track and at the same distance, Groovy was sent off as the overwhelming favorite to win the Breeders' Cup Sprint but finished fourth, 2½ lengths behind winner Smile.
Following another fourth-place finish in the November 15 Sport Page Handicap at Aqueduct Racetrack, X-rays revealed that Groovy had a bone chip in the right knee that required surgery.
He returned on June 6, 1987, to win the Roseben Handicap at Belmont Park by 4¾ lengths, receiving a Beyer Speed Figure of 131.
[9] After he won the July 18 Tom Fool Stakes for the second year in a row and his fourth race in four 1987 starts, John Ballis sold Groovy for $4 million to the Prestonwood Farm of brothers Jack, Art and J.R. Preston.
[10] Undefeated for the year, Groovy was again the heavy favorite to win November's Breeders' Cup Sprint, hosted in 1987 by Hollywood Park Racetrack.
In his last race, for the second straight year Groovy was upset in the Breeders' Cup Sprint, finishing second by four lengths to the filly Very Subtle.