In today's world of investing, it is normal to see mostly traditional options but companies like Hedonova are paving the way as an option for alternative investing. Traditional types of investments such as stocks, bonds, and some real estate have been the norm for decades. However, in recent years, other types of investments known as alternative investments have become more popular. Alternative investing is an umbrella term for a range of investment opportunities that fall outside of traditional stocks and bonds including items such as art, wine, NFTs, hedge funds, and more. We're going to look at who Hedonova is and what to expect with their alternative investing.
Hedonova is a modern hedge fund that was started in 2020 by Alexander Cavendish (co-founder & CEO) and Suman Bannerjee (co-founder & CIO). They are a team of 16 investors, lawyers, economists, researchers, engineers, and marketers. Hedonova’s securities are SEC qualified; the highest authority in the US for investing and protecting investor’s funds.
Hedonova’s portfolio is a single, globally diversified fund that provides access to 12+ alternative assets in one fund including million-dollar works of art, high-yield real estate, trailblazing startups like SpaceX, cryptos, NFTs, Web3, agricultural economy, students from top universities, equipment financing, media royalties, wine and more.
The aim of Hedonova is to provide investors freedom and access to new investment types that are not limited by political borders and national policies. Historically, these types of investment options were reserved for high-net-worth individuals who were able to invest high sums of money. However, Hedonova is open to everyone and has created smaller entry points to allow anyone who meets minimum requirements access to these alternative investment opportunities.
The fund is registered as a Delaware LLC 506(b) exempted company which enables a 100% tax pass-through. Investors pay taxes in their home country according to local laws. Hedonova includes professional support for investors to help with taxation, compliance, and other related services.
Hedonova has no lock-in period or exit fee. Invest and redeem any time you want.
The first investment with Hedonova has a minimum of $5000 but there is no minimum for additional investments. However, note that as of January 1, 2023, the minimum will increase to $10,000. Once you invest, you will be allocated blocks that are similar to shares in companies. Your blocks/investments increase value along with the value of underlying assets. Investors will receive an email with portfolio reports and investment updates every other week. All dividends are then reinvested into Hedonova’s portfolio.
Hedonova charges a 1% annual management fee on your portfolio value and a 10% performance fee on the gross profits generated from capital gains and dividends at the end of the year. The performance fee is charged on a high-watermark basis, meaning the highest level of value reached, so investors do not pay fees twice for the same amount of gains.
Part of the attraction of alternative investments is that they offer the possibility of higher returns than traditional investments. Hedonova’s goal is to generate returns uncorrelated to financial markets. Their portfolio is well diversified across asset classes, geographies, and risk profiles to provide security and peace of mind during turbulent market climates. Currently, according to Hedonova, one can expect a net return of 55.2% IRR.
There is always a risk with investments, Hedonova is transparent with its risks on management including currency risk, regulatory, macroeconomic, and emerging market risks. You should be aware of and carefully consider the information they provide in their risk disclosure before determining whether Hedonova is right for you.
Hedonova takes the guesswork out of investing. Investors can reap the benefits of the diversified fund with an IRR of over 50% without having to do the background research and keep up with trends on individual investments. The current $5000 initial investment may be steep for some, but with the added benefits of high yields, a skilled team, SEC-registered, diversified investments, and performance fees on a high-water mark basis Hedonova offers a strong option for alternative investing.