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HedgeCoVest.com the first real-time hedge-fund replicator platform, has moved out of beta testing and is now live. The award winning platform, which features the revolutionary Replicazor technology, allows investors to invest in hedge fund strategies within their own brokerage accounts.
Using the platform, investors can invest directly in hedge fund strategies with relatively small dollar allocations, and have full transparency of holdings and daily liquidity. In addition, the platform is available to both accredited and non-accredited investors, thus allowing nearly any investor to potentially benefit from the diversification and downside protection offered by many hedge fund strategies.
The Replicazor
Replicazor works by recognizing whenever a hedge-fund manager on the platform makes a trade, and then duplicating that trade within investors’ separately managed accounts (SMAs). Replication trades take place “almost instantaneously,” according to InvestmentNews, resulting in investment strategies that very closely mirror the hedge fund strategies selected by an advisor or an individual investor.
HedgeCoVest doesn’t charge any performance fees, but it does assess a 2.5% management fee, in addition to fees charged by the investor’s brokerage firm. Thus far, Interactive Brokers is the only brokerage signed up with HedgeCoVest, but integrations are currently being built with both Pershing and TD Ameritrade.
“The traditional limited partnership investing model is being disrupted,” said HedgeCoVest CEO Evan Rapoport, in a recent statement. “Until now, only ultra-high net worth investors and institutions had access to high-quality alternative investments. We believe all investors should be able to benefit from hedge fund strategies with the transparency, liquidity, security and lower fees they seek.”
Other features of HedgeCoVest include:
Real-time performance reporting
Intraday liquidity
Flat fees
No Schedule K-1 tax documents
These features go a long way to solving the issues many Registered Investment Advisors (RIAs) have with hedge funds, and thus, HedgeCoVest and Replicazor may result in much wider investment in hedge-fund strategies.
Advisors Coming Aboard
“Every portfolio can benefit from having alternatives in it,” said Ed Butowsky, Managing Partner of Chapwood Capital Investment Management. “HedgeCoVest is a game changer for all portfolios by allowing easy access, complete transparency, a simplified fee structure and no K-1.”
Mr. Butowsky also said that he was “aggressively migrating” a large portion of his practice into the HedgeCoVest platform.
The launch of the platform follows four years of R&D and beta-testing. HedgeCoVest has generated over $80 million in committed capital and signed 45 investment management companies, including Fred Alger, The Boston Company, Cornerstone, Kovitz, and Sandell. HedgeCoVest also offers 14 custom investment products including the first ever real-time, investable hedge fund index.
