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Using Hedonova – an alternative asset investment fund

Using Hedonova - an alternative asset investment fund

Have you found yourself looking into alternative investments over recent years? If so, you won’t be surprised to find that you are not on your own. No doubt you will have come across various companies that allow you to start investing in the likes of wine, real estate, and even crypto. The main problem with these companies is that things get a little tricky for the investors. Hand-picking the best alternative investments can become a little challenging. That’s where Hedonova comes in.

You can think of Hedonova as a mutual fund, but one that is for alternative investments. This sees investors being able to access all that is great in the alternative investment world. If that sounds more than a little appealing, then read on. 

So, what exactly is Hedonova?

You can read all about Hedonova by clicking here, but what you need to know is that it is a hedge fund, just one with a difference. At Hedonova, the portfolio that is invested in is all about alternative assets. This fund was set up back in 2020 and, to prove its model works, it set out by only investing its founders’ funds. 

Now, Hedonova is open to investors across the world. The fund makes taxation easy for clients. The fund is a tax pass-through entity and investors are taxed as per their local laws. This, unlike other hedge funds, keeps things nice and simple for its users.

Is Hedonova legit?

Before we start looking at exactly what the alternative investments offered are, investors will need some reassurance when it comes to a relatively new company. The simple answer is that yes, Hedonova is a legitimate hedge fund and is registered in Delaware.

What else inspires confidence here is a look at those who are behind the hedge fund. There is Alexander Cavendish whose career has seen him with the likes of UBS and Stanley Morgan. Then there is Suman Bannerjee who has experience in managing an alternative investment book valued at $5 billion. It is safe to say that the team behind Hedonova know what they are doing. 

What investments are offered by Hedonova?

When looking at the alternative assets that Hedonova invests in, you will see that there is a broad range. Some of the those that you can find in their portfolio include:

  • Wine
  • Art
  • Carbon Credits
  • Litigation finance
  • Startups
  • Crypto
  • Collectables 
  • NFTs
  • Student income share agreements 
  • Equipment finance 
  • Real estate 

Why invest in alternative assets?

Alternative assets are able to enhance your return and reduce your risk. This is achieved by combining these assets alongside traditional ones such as equity, bonds, and gold. This gives you a portfolio that is diverse and well rounded.

When looking at how alternative assets perform, you can see that the majority have outperformed the S&P 500 historically. While past performance can never be a guarantee for the future, it is certainly promising. 

How much do I need to invest with Hedonova?

The great thing about Hedonova is that it makes the entry-level to alternative investments achievable. Whereas to invest in these alternative assets alone would require substantial funds, with Hedonova, you can invest into the fund with just $1,000.

What fees are charged by Hedonova?

The fees with Hedonova follow the standard that you would expect with any hedge fund – “2 and 20 model”. This sees a 1% annual fee being charged along with a 10% performance fee on any gains that the fund earns.

What are the potential returns?

What you will find with Hedonova is transparency, in abundance. It has published that it achieves a net return of 63% and that there is a target return of 25-30%. It is worth noting that there is no ongoing cash flow from your investments. Although the likes of real estate may generate monthly cash flow, this is reinvested by Hedonova.

If investors want to redeem their shares then they will need to give 30 days notice. In order to ensure that there are never any issues with redemption, Hedonova balances its portfolio so that around 35% is invested into assets that are relatively liquid, such as crypto for example. 

How many investment options are there?

At Hedonova, things are kept simple. That being the case there is just one investment option available. This is its investment fund. The fund covers 12 asset classes (some of which we listed a little earlier) and the expectation is that more will be added in the future.

The benefits of investing in alternative assets are clear. What Hedonova has created is the simplest way to do this that makes this investment type borderless and fully inclusive. 

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