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Hedgeable provides private wealth management for investors using their advanced technology platform and low fee structure. Using a "Core Satellite” model, they build client portfolios around a core base of assets, and then add in less correlated investments to improve returns while not adding a tremendous amount of additional risk.
In addition to their Core Satellite portfolio, Hedgeable also provides portfolios to individuals interested in a specific style of investing. For example, for investors that are interested in portfolios that meet strict “social responsibility” criteria, portfolios can be designed to invest in only those assets that don’t harm the environment, are ethically sound (i.e. no tobacco, alcohol, or weapon), and have limited negative impact on the countries thy expand to.
Hedgeable is not as well know as competitors like Wealthfront or Betterment, however they strive to address specific markets like those interested in social responsible investing. Here are more details on Hedgeable:
• Assets Under Management: $70 million
• Minimum Deposit Amount: Hedgeable has a $1 minimum investment amount with no minimum balances required or automatic investments. However, to receive the full Core Satellite portfolio, investors must have at an account value of least $100,000.
• Portfolio and Asset Allocation Details: Hedgeable brings a private wealth management approach to their clients. Typically reserved for clients with $10 million plus, their private wealth management model means that clients get very customized portfolios with active risk management and hedging, alternative investments, and core satellite investments.
• Fees: Hedgeable’s fee structure works on a sliding scale model. The higher the assets under management, the lower the fees. Fees start at 0.75% and drop to 0.30% for accounts over $1 million.
• Account Types Available: Hedgeable has over twenty-five different account types, including Individual Retirement Accounts (IRAs), 401(k)s, and other general investment accounts.
Hedgeable has very low minimum deposit requirements. In order to get access to the platform and start building a portfolio that fits the client’s needs, they only require an initial deposit of $1. This low initial deposit simply gets the client’s bank account connected with Hedgeable’s custodian bank and starts the process.
Once the portfolio has been designed and that initial deposit made, additional money can be added to start investing in the chosen portfolio.
Hedgeable is different from other robo advisors in that they offer much more customized portfolios. Still using Modern Portfolio Theory as the foundational principles, their algorithms estimate an expected risk and return for each asset class, as well as the expected cross-asset correlation classification, and then determines an allocation mix that maximizes the return-to-risk ratio based on those inputs.
Their methodology includes three components that are all used collectively to customize a portfolio that is an exact fit for the client:
The asset class universe is what makes Hedgeable unique. In addition to the traditional asset classes like domestic equities and domestic fixed income used by most robo advisors, Hedgeable build portfolios with asset classes like “Alternatives” and “Absolute Return” which are more advance hedge fund type of investment choices.
For more details on Hedgeable’s investment process, you can check out their white paper.
Hedgeable’s Fees and Additional Pricing
Like their portfolios, Hedgeable’s fee structure is slightly more complicated than more traditional robo advisors. They use a tiered investment model, with fees that gradually reduced depending on the total assets under management.
These fees are inclusive of all Hedgeable’s investment advisory fee, the custodial fee, trading costs, administration, support, and access to our technology platform. In other words, these are the only fees payable by the client. As with other robo advisors, the exchange traded funds Hedgeable uses also charge fees, but those will be transparent to investors as they are take automatically by the fund.
Hedgeable’s Account Types Available
Hedgeable offers one of the widest selection of account types we have seen in the robo advisor space. This is convenient for individuals and/or companies that want to take advantage of the professional level of advice provided but have more complex account type requirements. They offer over 25 different account types; here are just a snapshot of the more common ones:
• Individual Investment Accounts
• Joint Investment Accounts
• Trust Accounts
• Traditional IRAs
• Revocable Trust
• Irrevocable Trust
• Investment Clubs
• Roth IRA
How to Get Started with Hedgeable
In order to become a client of Hedgeable, investors must meet specific requirements as set out by the United States regulatory bodies. This includes the following:
• Must be a U.S. citizen or resident alien
• Must have a valid U.S. social security number
• Must have a valid U.S. address
• Must be 18 years or older
Once signed up for Hedgeable and the $1 minimum deposit has been made, clients will complete a questionnaire and go through the portfolio customization process. After the build out of the portfolio, clients can then access their accounts and constantly review the performance, asset allocation, and transactions that have and/or will occur in the account.
As a robo advisor, Hedgeable offers more customizable portfolios than many of their competitors. With access to alternative investments like bitcoin and even venture capital, the opportunities for additional returns for more risk is now available to those who have the stomach for it.