Hedonova Alternative Assets Investment Review 2022
hedonova review

Hedonova Alternative Assets Investment Review 2022

Recently, I stumbled upon a finance article throwing light on the Alternative Investment Funds (AIF) that mentioned about AIFs would grow to Rs. 30 lakh crore by 2030.

alternative assets

That developed my curiosity and I learned about an alternative investment segment called Alternative Assets. Eventually, I came to know about Hedonova (a hedge fund for alternative asset investment).

Let’s quickly discuss the benefits of Alternative Assets before I let you go through my Hedonova review.

Benefits of Alternative Assets

Alternative assets, when you add to your traditional investment portfolio like equity, bonds, fixed deposits, and gold, enhance the rate of return and reduce the risk of the portfolio thanks to the diversification of funds.

Alternative assets are highly popular among the High Net-worth Investors (HNIs) (whose investment capital is above Rs. 5 crores) because of the fact that alternative assets better diversify their portfolio and have also proved to give better returns (depending on the sectoral performance).

According to the Fool.Com report comparing alternative asset performance with S&P500,

  • Equities exceeded wine and whiskey in 2021
  • But Art, Cryptos like Bitcoins, Ethereum, and Commodities delivered bigger returns than stocks in 2021

So, if you want to diversify your portfolio or have an inclination towards a particular field, alternative assets could be a good investment choice.

And I came across Hedonova recently, which is an alternative asset hedge fund that allows you to invest in alternative assets just like investing in mutual funds.

Also read – INDMoney Review (US stock investment made easy)

Hedonova Review

#1. About Hedonova

Hedonova is an alternative asset investment fund that helps investors invest in alternative assets like art, wine, litigation funding, private equity, and P2P lending, among others.

Earlier the HNIs have had exclusive access to alternative investments but the retail investors were unable to access alternative assets due to regulations and ticket size constraints.

Hedonova administers more than 84 million USD invested in around 12 different alternative assets.

With Hedonova, you can start investing in alternative assets with just $1000.

#2. Why Hedonova

Investing with Hedonova is borderless. Doesn’t matter whether you live in the United States, or India, you can invest in the Hedonova fund.

Taxation is simple. All gains are taxed as per the laws of the investor’s home country in his home country. Hedonova’s Delaware LLC 506 (c) structure enables this.

Investing and exiting from the fund is similar to open-end mutual funds. You can invest and exit any time you want.

If you talk about Hedonova’s performance over S&P500, Hedonova outperformed S&P500 with a 52.3% CAGR in 2020-21. The investors earned 15.4% more return over S&P500 for the same period investment. (See the snapshot below).

hedonova vs s&p500

Hedonova’s investment team comprises experienced alternative asset investors and takes all the investment decisions on behalf of the investors. Investors don’t have to worry about due diligence and regulatory requirements.

Let’s discuss more regarding the Hedonova team in the next section.

#3. The People Behind Hedonova

Alexander Cavendish is the CEO, armed with degrees in applied mathematics and computer science from Zurich ETH.

Alex’s career panned across UBS and Morgan Stanley, a derivative modeling path for the former and investment banking focused on financial services firms for the latter.

Suman Bannerjee, the CIO, has extensive experience investing in emerging market experience and alternative investments.

If you look at his experience, first for Millennium Partners and then for another large hedge fund, he managed a $5 billion alternative investment book. Suman takes the investment decisions at Hedonova.

Also read – Is forex trading legal in India

How to Start Investing in Hedonova

Investors need to express interest in investing in 3 ways –

Method #1 – By filling up the form on the Hedonova website.

start investing with hedonova

Method #2 – You can also connect with the Hedonova team by emailing or WhatsApping the Hedonova team.

hedonova whatsapp web

Method #3 – You can schedule a video conference call or Whatsapp call with their investing expert. You have two options here as shown below –

hedonova call

When you opt for any of the above-said methods, Hedonova’s investing team will get in touch with you to explain the process and initiate KYC formalities.

Once all the KYC-related formalities are done, you can add capital to your Hedonova account and start investing.

Check out – Best forex brokers in India

Hedonova Fee Structure

Hedonova’s charges are as per the standard hedge fund ‘1 and 10’ model. That means you have to pay two types of fee

  • Management fee – A 1% management fee is charged on the investment amount and is deducted from your investment funds.
  • Performance fee –  A 10% performance fee is charged on the gains investors make on their investments.

Also, note that the performance fee is charged on a high-water mark basis. A high-water mark is the highest peak in fund value that a fund has reached.

Also read – Binance vs Crypto.com

Final Takeaway

You can easily start investing in alternative assets through the Hedonova platform. You have to pay capital gains tax based on the earnings on your investments.

Leave a Comment

Your email address will not be published.

Scroll to Top