If you're about the alternative investment space you might already know about Masterworks, FundRise, RealityMogul, Otis, and more. These companies let investors invest in unique asset classes like wine, commercial real estate, art, and more. But it can get challenging to pick the best offerings. Fret not because there's a fund for it now. Hedonova allows investors to get access to the entire alternative investments universe with a single fund, like a mutual fund but for alternative assets. Here's are 10 things to know about Hedonova.
1. What does Hedonova do?
Hedonova is an investment fund that invests in alternative assets. Alternative assets are all the rage these days. We recently covered Vinovest which invests in wine. There’s a ton of alternative investment platforms our there with more coming up each day. There’s Masterworks for art, fund rise for real estate, Otis for collectibles. But there’s Hedonova for everything.
2. What do they invest in?
Investors get access to ten to twelve asset classes like art, wine, startups, real estate, equipment financing, litigation investing, students and more. The interesting thing here is their portfolio is it’s a mixture of investments that increase in value (like wine, art, startups) and income generating assets which pay out a regular income (like litigation funding, equipment financing, P2P lending, students) making it a balanced portfolio.
3. Who is behind the company?
The founders of the company are Alexander Cavendish and Suman Banerjee. Alexander is an ex investment banker from Morgan Stanley. Almost the entire founding team are ex-traders including ex-VP Suman Banerjee. Both the founders have background in investing in alternatives.
4. What are the returns like?
Hedonova’s returns have been slightly north of 60% annualized. The highest earning assets are crypocurrency and litigation finance which did annualized 300% and 58% respectively since 2020.
5. What are the advantages of investing in Hedonova?
Investors get access to more than 10 asset classes in a single fund with a comparatively low-ticket size. Some of the asset classes they invest in like equipment, litigation financing is typically available to institutional investors only.
6. What’s different about it?
Bloomberg listed wine, whiskey, art etc as the top alternative assets to invest in 2021. Motley Fool mentions that 81% of Ultra high net worth investors invest in alternatives assets. The JOBS act opened up multiple asset classes for accredited investors to invest in. With so many platforms and offerings to chose from, Hedonova is one fund to invest in the best offerings. However, investors cannot chose what to invest in. Investors buy into a fund that allocated capital into multiple asset classes.
7. Who can invest with Hedonova?
The alternative investment space is US dominated. There are a few in Europe but nothing worth mentioning. And most non-US investors cannot invest in these platforms. Hedonova uses a structure into which non-US investors can buy into.
8. How much do they charge?
Hedonova charges a standard hedge fund fee of 2/20. 2% of assets annually and 20% of profits annually.
9. What are the risks?
Hedonova is nascent with just a year and a half of operational history. And then there’s the liquidity. Many of the assets they invest in like art, wine, equipment financing and litigation financing are pretty illiquid. Once the money is in, it’s locked in for at least three years. They have a third of the fund in listed stocks and cryptos which brings liquidity to the portfolio.
10. What is the minimum investment?
The minimum investment is $1000 to get started with which is pretty low compared to other platforms out there.
Written by Allen Lee
Read more posts by Allen Lee