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Hedgeable is an independent asset management firm that offers the private banking investing experience to the masses. The company was founded in 2009 by twins Michael and Matthew Kane and is based in New York City. The company is registered as an investment advisor with the SEC and is not affiliated with any banks brokerages or financial research companies.
Who Is Hedgeable Designed For?
Hedgeable is open to everybody who has some cash to invest as there is no minimum to open an account. However, their target audience are primarily young professionals who don't have enough money in their investment portfolio to warrant the interest of private banks and hedge funds but who could in the future.
How Does Hedgeable Work?
Hedgeable is a robo-investor company with extra features and perks. Its automated investment services allows it to provide investing techniques that were previously only available to the ultra-rich. However, unlike most robo-investor companies it does not only invest in ETFs. It also provides sophisticated services such as downside protection, which reduces the losses to a portfolio during periods of high market volatility, tax-loss harvesting and additional asset classes, such as gold, Bitcoin, commodities and real estate.
Investors can add all types of investment accounts to their Hedgeable portfolio. This includes Roth IRA, 401(k), trusts, business investment accounts and custodial funds.
How Much Does Hedgeable Cost?
Hedgeable is fee-only advisor not a broker, so it doesn't sell products or charge a commission on transactions. Instead it charges an all-inclusive fee that is based on the size of the portfolio. Rates vary from 0.3% (for portfolios of $1 million and up) to 0.75% (for portfolios of $0 to $49,999. These rates are higher than the rates charged by other robo-investor companies, such as Betterment and Wealthfront.
How is Hedgeable Better Than Other Wealth Management Companies?
Hedgeable provides a hybrid between managed funds and straight robo-investor companies. It has no minimum balance to open an account, which is rate with the high-end automated investing companies, and includes sophisticated investment services few companies include, such as access to private equity companies, Bitcoin and real estate.
The price is higher than investing with other robo-investing companies or using a low-cost investment company, such as Vanguard, but not much higher, particularly when you take into account the additional services it includes. For instance, Hedgeable offers managed investment during market downturns to reduce cash loss. During the 2009 financial crisis, the average investor lost 40% of their net-worth, while the ultra-wealthy investors who used hedge funds lost less than half that amount. Hedgeable claims to open the high net-worth style wealth management platform to average investors and at a fraction of the cost of a regular financial advisor.