Categories: Coin Reviews

Hedonova Review 2024 | Invest in Alternative Assets

The following review reflects information and analysis based on data available at the time of writing. Subsequent to publication, we have encountered additional information that raises concerns about Hedonova. Despite attempts to obtain further clarification and documentation from the company, including efforts to engage directly with its founders, our inquiries have not been satisfactorily resolved. We believe it is our responsibility to ensure that our content is accurate, trustworthy, and reflects the latest available information. Given the circumstances, we advise our readers to exercise caution and conduct their own due diligence when considering Hedonova as an investment option. We remain committed to providing our audience with honest and thorough reviews. Should any new information come to light or if Hedonova addresses our concerns with the requested documentation, we will update our content accordingly to reflect the most accurate information available.

Summary: In this review, we’re examining Hedonova, an alternative investment platform operating a hedge fund with a diverse range of alternative assets open to investors around the world. More specifically, we’re exploring the history of the platform, its features, fees, and portfolio, as well as offering a short list of the platform’s pros and cons. To wrap up, we offer our final thoughts and go over some of the most commonly asked questions regarding Hedonova.

About Hedonova

Hedonova homepage. Source: https://hedonova.io

Hedonova is an investment platform operating a hedge investment fund built around alternative assets. The platform seeks to enable investors to gain exposure to the alternative asset market without having to micromanage their assets and invest in each of them individually (i.e., on multiple different platforms and on multiple different accounts). Instead, they can rely on Hedonova to oversee the investment process and build a portfolio for them. 

Hedonvoa is headquartered in Dover, Delaware, but it oaccepts investments from investors all over the world, having offices in the United States, Europe, and Asia.

Hedonova: A Brief History

Hedonova was founded back in December 2019 by Suman Bannerjee and Alexander Cavendish, two entrepreneurs with a history in portfolio management and investment banking. The two men sought to invest in a series of dental clinics in India, which turned out to be more challenging than they had first imagined. However, despite all the obstacles, their mission was ultimately a success, which prompted the couple to give alternative investing another go by forming a company.

Aided by contributors such as the Royal House of Oman and Morgan Stanley, Bannerjee and Cavendish managed to invest $90 million into the company. Subsequently, Hedonova operated as a private fund during the first half of 2020, with the team establishing compliance structures and conducting rigorous system stress tests. In June of the same year, the fund finally opened its doors to external investors, becoming the platform we know today.

Today, the company is run by an international team of Forex (FX), banking, investor communication, and other professionals operating in the investment world.

Hedonova Vision in Short

According to the Hedonova team, the principal goal of the platform is to make investing in alternative assets as accessible as possible. On the official website, they sum up their vision as follows:

“Investment opportunities should not be restricted by borders or policies. Assets belong to everyone, and investing should be accessible. Anyone from anywhere should have the chance to invest in any asset, regardless of politics. Our goal is to create a world where everyone can invest freely.”

To realize this vision, the Hedonova fund includes a diverse range of alternative assets and is open to all potential investors interested in asset classes like music royalties, real estate, litigation funding, etc.

Hedonova performance and portfolio composition. Source: https://hedonova.io

How Does Hedonova Work?

As mentioned, Hedonova is an alternative investment platform catering to investors looking for a diversified portfolio beyond traditional stocks and bonds. The platform prides itself on making alternative investment opportunities accessible to as wide a range of investors as possible, democratizing the investment landscape, and opening it up to individuals without high net worth.

As the investment landscape evolves with the integration of alternative assets, Hedonova seeks to provide an avenue for investors to expand their portfolios, increase potential growth, and find a solid way to diversify. In addition, the company promises a commitment to delivering a comprehensive, user-friendly investment experience.

First and foremost, Hedonova seeks to streamline the investment process and remove a lot of uncertainties that trouble both inexperienced investors facing the market for the first time and those more seasoned investors who wish to venture beyond stocks, bonds, and commodities. Investors have the ability to track their holdings and monitor performance through regular updates and online dashboard, offering transparency and control over one’s investment journey.

By sparing investors the need to do individual research on each asset class and constantly monitor market developments, Hedonova’s diversified fund promises an Internal Rate of Return (IRR) exceeding 50%. 

Hedonova assets under management. Source: https://hedonova.io/

Users should know that they won’t have full control of their investments. Once the initial payment is made, the Hedonova team manages the investment and the fund. When you invest with Hedonova, you are allocated blocks, which represent fractional ownership in the fund. As such, blocks are similar to units in mutual funds or stocks. 

Hedonova is available on both desktop and mobile (iOS and Android).

Hedonova Portfolio

Hedonova fund is available to US and international clients, and investors can invest in more than 50 currencies. Moreover, clients can invest or withdraw their capital at any time without any restrictions or fees.

At the time of writing (January 2024), Hedonova’s portfolio comprises the following assets:

  • 20% Equipment Finance;
  • 19% Litigation Finance;
  • 13% Real Estate;
  • 12% Startups;
  • 11% Carbon Credit;
  • 8% Cash;
  • 7% Music Royalty;
  • 6% Agronomy;
  • 4% Art.
Hedonova portfolio composition. Source: https://hedonova.io/

The fund also uses derivatives. Currency derivatives help it hedge Forex risk, and some investments are structured as derivatives, synthetic calls, or put options for the sake of tax efficiency and downside risk reduction. 

Hedonova does not employ derivatives for speculative purposes.

How Does the Hedonova Portfolio Perform?

The Hedonova fund is benchmarked against the S&P 500 index. As of the time of writing (January 2024), the fund stats are:

  • Internal Rate of Return (IRR) of 52.01%: IRR is a performance measure gauging the fund’s potential profitability based on factors such as investment duration, cash flows, and overall returns;
  • Alpha over S&P 500 of 104.41%: That is, the absolute excess annual returns of the Hedonova hedge over the S&P 500 index after adjusting for market fluctuations;
  • Compound Annual Growth Rate (CAGR) of 55.51%: CAGR is a performance gauge quantifying the fund’s annual returns in regards to compounding effects;
  • Standard Deviation of 1.18: A standard deviation measures the fluctuation and volatility of a fund based on its average returns;
  • Value at Risk (VaR) of 1.61%: VaR is a measure of your investment’s stability over time in regards to tail risk or the probability of a highly adverse market development event;
  • Sharpe ratio of 1.08: The Sharpe ratio gauges the fund’s risk-adjusted return. Naturally, the higher the Sharpe ratio is, the better the fund is expected to perform.
Hedonova fund against S&P 500. Source: https://hedonova.io

Hedonova devotes 55% of its capital to non-US markets.

Those who can benefit from the platform include:

  • New investors looking to diversify;
  • Investors looking to gain exposure to the alternative asset market;
  • Those searching for a hands-off, less time-consuming investment opportunity;
  • Individuals looking for investment venues that are not so dependent on the stock market.

Hedonova Fees

To begin investing with Hedonova, an initial deposit of $10,000 is required. While this amount may seem steep to some investors, Hedonova’s promise of high yields, expert leadership, responsive customer service, and a performance fee structure based on a high-water mark principle position the platform as an attractive alternative investment option.

Note, though, that there are no thresholds for follow-on investments. However, you will incur taxes as assessed in the country of your residence. For a detailed breakdown of Hedonova fees, check out our separate guide.

However, when considering alternative assets such as those offered by Hedonova, it’s crucial to carefully evaluate various factors, including investment fees. Here’s an overview of the fees you can expect with Hedonova:

  • Management Fee: A 1% management fee applies to your invested capital annually. It is deducted from the assets under management. Additional taxes are applicable based on your jurisdiction;
  • Performance Fee: A 10% performance fee is applied to your total gross profits from both capital gains and dividends. This is done at the end of each year, and the fee is calculated based on the high-water mark principle. In short, a high-water mark is the peak value of your portfolio. It determines whether a fund manager is eligible for a performance fee. In other words, investors will not have to pay excessive fees for underperforming investments or pay multiple fees for the same performance.

Additionally, non-US investors can make use of the platform’s hedging strategies to mitigate currency risks associated with their local currency when set against the US dollar.

When funding their accounts, users can transfer money using any major payment venue or wire transfer. Note also that there are no leverages at Hedonova. However, lines of credit can help the team acquire assets at lower prices, in which case cash balances are set aside.

Getting Started

Getting started with Hedonova is quite straightforward. All you have to do is head over to the platform’s official website and click on the Start Investing button in the upper right corner (as shown below):

Hedonova homepage. Source: Source: https://hedonova.io/

Then, you will be redirected to a new page where you can fill out a form by supplying your name and other personal information. To submit the form, click on the Get in Touch button at the bottom (as shown below) and wait for a Hedonova team member to get in touch with you and assist you with any questions and concerns you might have before investing.

You can also schedule a direct call with the Hedonova team. Available platforms include WhatsApp and Calendly (as shown below), and all you have to do is choose your preferred method and find a suitable date.

Hedonova registration page. Source: Source: https://hedonova.io/

Once you have entered all the information and scheduled a call, a member of the Hedonova team will contact you so you can discuss your registration process and investment goals.

KYC

Hedonova’s Know Your Customer (KYC) process is primarily streamlined through its mobile app, where clients can easily confirm their identity by logging in with their email ID, providing a phone number, entering a verification code, and uploading a valid document. For detailed instructions on how to complete the KYC form on mobile, users can read Hedonova’s dedicated guide.

For those who prefer, there’s also an option to fill out a form available on Hedonovas website. The form can be found here.

Is Hedonova Safe?

Hedonova markets itself as an alternative investment platform specializing in a variety of assets like art and wine. The promise of easy diversification can be attractive, but the question remains: is Hedonova.io safe for potential investors?

In short, yes — Hedonova is considered a safe platform. However, when considering the safety of any investment platform, be it for alternative or more common asset classes, due diligence is not only advised but critical. 

SEC

Concerns have been raised about the legitimacy of Hedonova in the past, claiming primarily that it operates as an unregulated investment platform. Today, however, the platform is registered with the Securities and Exchange Commission (SEC) as an investment adviser. Moreover, it is also audited by Haynie & Company, and its funds are in the custody of Northern Trust.

SEC regulation helps ensure that the Hedonova team acts in the client’s best interest, protecting them from illegal practices such as fraud. Moreover, as per the SEC’s Investment Adviser Codes of Ethics Rule, Hedonova is bound to:

  • Clearly explaing its business conduct;
  • Comply with Federal securities laws;
  • Report any regulatory violations;
  • Issue receipts of its code of ethics;
  • Keep records for at least five years.
A summary of Hedonova’s SEC registration is available here.

Further Points

Naturally, third-party reviews and customer experience testimonies on platforms such as Trustpilot offer a diverse spectrum of opinions, as is usually the case with platforms of this type. As of January 2024, however, it seems that the majority of user reviews are positive. 

Still, readers ought to understand that all investments are inherently risky and that no investment platform has the power to combat adverse market movements arising due to a number of external factors. In other words, while Hdonova is a safe platform, there is no guarantee that all investors will succeed in meeting their financial goals by simply registering with Hedonova.

User Data Protection

User account safety and data protection are of paramount importance for most investors. As cyber threats and scams continue to plague the investing landscape, it has become imperative for all trading platforms to go the extra mile in protecting user info, especially when larger sums of money are involved. 

To safeguard user details, Hedonova employs several security measures, such as:

  • A maximum number of login attempts: Users can attempt to log in no more than five times. Should they fail, their accounts will be automatically locked for 24 hours, preventing further attempts to access any data;
  • Password protection: The platform has a built-in password protection reminder set to go off every six months and remind users to change their passwords. Additionally, users are encouraged to set up Two-Factor Authentication (2FA). Detailed instructions as to how to do so are accessible on Hedonova 2FA page;
  • Automatic logouts: If the user is inactive for a certain amount of time, the platform will automatically log them out, making sure no one can tamper with their data.

Why Users Choose Hedonova

The key selling point of Hedonova is its insistence on accessibility and streamlined investing.  However, by investing with Hedonova, clients can enjoy other potential advantages. 

First, it provides investors with a comprehensive diversification platform that goes beyond conventional investments such as stocks and bonds, giving them access to a more diverse range of assets with the potential for increased returns. 

Second, Hedonova’s fund is actively managed and overseen by professional investors, and it is built around liquid assets, enabling investors to customize their portfolios quickly. 

Third, the platform welcomes not only US-based investors but also investors from around the world, offering a global avenue for alternative investments and portfolio diversification.

Hedonova Pros and Cons

Pros

  • Diversification: The platform offers clients easy access to alternative asset classes, which can be a solid way to diversify your portfolio. Moreover, it can be a hedge against inflation;
  • Accessibility: The platform has made it its mission to welcome as many investors as possible. That includes both individual and corporate investors;
  • Customer support: Customer support is prompt, and clients can schedule calls quickly. Note, though, that some customer support channels are not available 24/7 worldwide (for example, the chat function on the website);
  • A good way to learn: Since it takes micromanagement out of the equation, Hedonova can be a solid platform for new investors to get familiar with the market and start investing slowly;
  • The management: The team behind the platform appears strong, comprising individuals with backgrounds in all areas pertinent to investing.
  • Hands-Off Investing: Investing in a pre-built and professionally managed fund means you don’t need any prior experience investing in any of the alternative assets the fund comprises. Naturally, you also don’t need experience managing and evaluating assets such as wine, art, etc.;
  • Low Correlation With the Stock Market: Alternative investments are typically not as dependent on stock market fluctuations;
  • Higher return potential compared to classical investments: Alternative investment funds often come with a higher return potential than traditional investments.

Cons

  • Limited track record: The platform is relatively new, so it has a limited track record;
  • Pricing: Getting started with the platform can be a bit pricey as a $10,000 initial investment is mandatory;
  • The website is a bit short on info: The platform has a sleek design, but it is a bit short on information regarding some statistics. Also, some areas of the platform are not updated as regularly as we would like. For example, most of the investor updates on the blog are from 2021;
  • The fund is gauged against the S&P 500 exclusively: While the S&P 500 index is one of the largest indices and a solid benchmark, some investors would prefer it if the fund was gauged against other alternative investment funds;
  • Little control over your investment: Investors looking to micromanage their assets and have a say in how the fund is organized will have to look elsewhere. The Hedonova fund is managed by the Hedonova team. This, however, is not necessarily a downside of the platform, but rather the reality of investing in hedge funds.

Hedonova’s Community and Support Channels

The majority of essential details about Hedonova and its fund are available on the company’s website and social media platforms. Those interested in more information are urged to delve into the company’s fact sheet.

Here are Hedonova’s main community and support channels: 

  • Website: Find everything you need to know about the platform on its official website;
  • Blog: Check out the team’s blog for potentially interesting updates. CIO posts and resources;

Hedonova social media platforms:

  • Instagram: Check out Hedonova’s Instagram for important news and occasional platform updates;
  • Twitter: Follow Hedonova on Twitter to receive potentially important updates in the future;
  • LinkedIn: Get in touch with the Hedonova team via LinkedIn;
  • Reddit: Interact with the community on the platform’s official subreddit;

Final Thoughts

The desire to diversify into other alternative assets, such as art, startups, or wine, has always been appealing to many investors, but the trouble of adding them to one’s portfolio is not always as straightforward as many would like. Hedonova offers a comprehensive avenue to help investors achieve their alternative investment goals by taking a lot of tedious and overwhelming micromanagement steps out of the equation. 

While the entry price of $10,000 is a bit steep for a lot of newcomers on the market, Hedonova brings a well-crafted hedge fund to the table and warrants consideration, especially if you seek exposure to alternative assets but have no idea how to begin. If the pricing aligns with your investment goals and you seek to diversify your portfolio by investing beyond stocks, bonds, and commodities, Hedonova is a solid choice.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

FAQs about Hedonova

What is Hedonova?

Hedonova is an investment platform operating a hedge fund built around alternative asset classes such as real estate, equipment financing, art, wine, etc.

Is Hedonova safe?

Yes, Hedonova is considered a relatively safe platform. It is registered with the Securities and Exchange Commission (SEC) and has to comply with all of its regulations to ensure your investments are authenticated and secure. 

Is Hedonova regulated?

Hedonova is registered with the Securities and Exchange Commission (SEC). 

Who manages Hedonova’s fund?

Hedonova’s hedge fund is managed and overseen by an in-house team of finance professionals. The official Hedonova page features a comprehensive staff list with a short interview given by each of them, as well as their LinkedIn contact links.

What does the Hedonova fund consist of?

The Hedonova fund comprises alternative asset classes, such as art, spirits, and equipment financing, among others.

What happens to dividends on Hedonova?

All dividends generated by the assets in the fund are reinvested.

Who can invest with Hedonova?

Hedonova welcomes both individual and corporate investors.

Are there minimum investments at Hedonova?

Yes, Hedonova does impose minimum investments. To start investing, you will need an initial sum of $10,000.

How often are Hedonova assets bought and sold?

Different assets are bought and sold at different times. For example, assets such as art and real estate are long-term investments, so they are not bought and sold as frequently.

Emily Jones

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Emily Jones

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