HedgeCoVest, the startup that makes it possible for average investors to take advantage of the same market-beating and -hedging strategies used by hedge funds, has added two new investing models to its platform.
The models, HedgeCoVestTechnology Short-Only and Ashbury Behavioral Long Short, are examples of the way HedgeCoVest gives average investors access to strategies historically available only to the wealthiest or most well-connected investors. HedgeCoVest Technology Short-Only gives investors the opportunity to hedge or take a position against technology stocks. Ashbury Behavioral Long Short looks to take advantage of “long-term behavioral biases in forecasting, fundamental valuation, and trend following.” The model is managed by Ashbury Heights Capital.
While the Ashbury Behavioral Long Short model is a single-strategy model, the HedgeCoVest Technology Short-Only model is a composite model. Here, the model takes the “highest-conviction” short positions in technology stocks from the platform’s single-strategy models and combines them into a single model.
HedgeCoVest’s platform works by plugging directly into the hedge fund’s trading operation. As soon as the fund executes a trade for a given strategy, the platform’s “Replicazor” technology picks up the execution report and makes a “best effort” to duplicate that trade in real-time in the client’s account pursuant to that strategy. There are more than 30 different models on the platform for investors to choose from, both single-strategy and composite, and both accredited and nonaccredited investors can use the technology. The minimum investment is $30,000, and HedgeCoVest charges a flat, annual fee of 2.5% of the assets in the client’s account.
The platform went live at the beginning of the month, with more than 1,500 beta users and 45 alternative investment firms participating. Investors appreciate the access to a diverse range of investment strategies typically not available to them. Fund managers and participating firms benefit from access to a cohort of investors who are typically—and in the case of Regulation D, legally—unavailable through the usual channels.
Founded in April 2013 and headquartered in West Palm Beach, Florida, HedgeCoVest made its Finovate debut at FinovateFall 2014 in New York. Evan Rapoport is CEO.