Company:Hedgeable

From HandWiki
Hedgeable
TypePrivately held company
IndustryPersonal finance,

Investment Management, Digital Wealth Management, Automated Investing, Portfolio Management,

Investment services
Founded2009
FounderMichael Kane, Matthew Kane
HeadquartersNew York City , United States
Key people
Michael Kane (Co-Founder, CEO),

Matthew Kane (Co-Founder, COO),

Siddharth Sharma, CFA, FRM (CTO)
Websitewww.hedgeable.com

Hedgeable, Inc. is a United States based financial services company and digital wealth management platform headquartered in New York City . Hedgeable doesn't follow set allocations, but actively manages accounts in response to market movements.[1]

On August 9, 2018, Hedgeable closed its doors to new investors, with existing investors required to transfer out of the company.[2] The company claimed that it was not shutting down but simply removing its SEC registration.[3]

History

Hedgeable was founded in 2009 by twin brothers Michael and Matthew Kane, who previously worked at high-net worth investment managers such as Bridgewater Associates and Spruce Private Investors. Both Michael and Matthew graduated from Penn State University with degrees in finance. Hedgeable is a Registered Investment Advisor with the U.S. Securities and Exchange Commission.[4] The company has received funding from SixThirty[5] and Route 66 Ventures[6] as well as various other angel investors. On August 9, 2018, Hedgeable closed its doors to new investors.[2]

Investing Strategies

Hedgeable does not follow a buy-and-hold approach, but instead actively manages accounts in response to market movements[7] focusing on downside protection in bear markets.[8] This strategy is different from other robo-advisors, which use Modern Portfolio Theory.

Hedgeable offers investment options including Exchange Traded Funds (ETFs) to individual stocks, master limited partnerships, private equity and bitcoin.[1] Mutual funds are not used in portfolios.[9]

Although the firm's focus is to provide a direct-to-consumer service, Hedgeable's investment strategies are available to financial advisors[10] and institutions as well through a variety of platforms.

Product Features

Hedgeable aims to gamify[11] personal finance for clients. Clients can open a new account or transfer an existing account. Hedgeable accepts retirement accounts, taxable accounts, business accounts and various other account types. Hedgeable offers unique features such as:

  • Downside protection
  • Account aggregation
  • Alternative investments
  • Alpha rewards
  • API[12]
  • Mobile app

It was awarded 4/5 for client transparency by Paladin Research.[13] Hedgeable was the winner of the Finovate Fall 2015 Best of Show Award[14] and the GREAT 2015 Tech Award (FinTech Category).[15]

Future Endeavors

In 2016, Hedgeable launched its first iOS mobile app[16] in order to expand their product offerings and is looking to expand globally in the future.

References

  1. 1.0 1.1 Moyer, Liz. "Putting Robo Advisers to the Test". Wall Street Journal. ISSN 0099-9660. https://www.wsj.com/articles/putting-robo-advisers-to-the-test-1429887456. 
  2. 2.0 2.1 Friedberg, Barbara A.; MBA; MS (2018-07-12). "Hedgeable Closes Active Robo-Advisor - Alternatives Exist" (in en-US). https://www.roboadvisorpros.com/hedgeable-closes-retail-investors-restructures/. 
  3. "Robo advice pioneer gets out of robo advice" (in en). 2018-07-12. https://www.financial-planning.com/news/robo-advisor-hedgeable-removes-sec-registration. 
  4. "The Razors Hedge", "Thrillist", New York, Oct 27, 2009
  5. Calhoun, Michael. "McKelvey’s SixThirty Picks First Four Startups for Accelerator Program", "CBS St.Louis", St. Louis, Oct 3, 2013
  6. "Hedgeable | Route 66 Ventures". http://route66ventures.com/portfolio-item/hedgeable/. 
  7. Moyer, Liz.[1], "Wall Street Journal", New York, April 24, 2015
  8. Chang, Ellen.[2], "Mainstreet.com", New York, April 21, 2015
  9. "The Millennial: Fintech's Darling?". 5 April 2016. http://blog.mondato.com/the-millennial-fintechs-darling/. 
  10. Garmhausen, Steve. "New Firm's Platform Offers Hedge Expertise to Advisers", "Financial Planning", May 3, 2010
  11. "Hedgeable Gamifies Personal Finance for Millennials - Production" (in en-US). http://www.yodlee.com/blog/hedgeable-gamifies-personal-finance-millennials/. 
  12. "Hedgeable". 15 March 2016. http://www.programmableweb.com/api/hedgeable. 
  13. Waddell, Melanie. "21 Best & Worst Robo-Advisors for Client Transparency", "Think Advisor", Aug 14, 2014
  14. "FinovateFall 2015 Best of Show Winners Announced - Finovate" (in en-US). 17 September 2015. http://finovate.com/finovatefall-2015-best-of-show-winners-announced/. 
  15. York, British Consulate General New. "Winners Announced For UK Government's Annual GREAT Tech Awards Competition". www.prnewswire.com (Press release). Retrieved 2016-04-22.
  16. "Hedgeable - Sophisticated Investing Made Simple on the App Store". https://itunes.apple.com/us/app/hedgeable-sophisticated-investing/id1100013306?mt=8.