Hedonova review 2023

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Our verdict

Our verdict

Consider Hedonova if you're interested in investing in a variety of alternative assets through a single, actively managed hedge fund. Look elsewhere if you're looking to trade individual stocks, crypto or other assets.

Best for: Experienced investors.

Pros

• Access to numerous alternative assets through a single fund.
• Invest via your IRA or 401(K).
• Open to all investors globally.

Cons

• Steep $5,000 buy-in.
• Limited company track record.

3.25

★★★★★

Finder rating

Hedonova is not currently available on Finder

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Minimum deposit

$5,000

Complete signup bonus

None.

How we rated Hedonova’s features

Fees	★★★★★	Total fees are on the high end compared to other actively managed funds we’ve reviewed.
Available securities	★★★★★	One fund of over 10 alternative assets but no access to stocks, crypto or other traditional assets.
Customer support	★★★★★	Reach customer support quickly via live chat, WhatsApp, online form or a scheduled call.
Mobile app	★★★★★	User-friendly mobile app with positive, but limited, reviews from mobile users.
Research and tools	★★★★★	No research and tools on the mobile app. The website has a blog with some articles on investing in alternative assets.
Reliability	★★★★★	No major outages have been reported.

To learn how our star ratings are calculated, read our methodology at the bottom of the page.

Hedonova is best for experienced investors

Hedonova is a hedge fund open to all investors, both accredited and non-accredited, that invests in alternative assets. Alternative assets can be a great way to diversify your portfolio, but that doesn’t mean it’s right for everyone. That’s because:

• Alternative investments do not fall into conventional categories and can be difficult to understand.
• Investments with Hedonova, and most alternative investments for that matter, are not regulated and are not subject to regulatory reporting requirements.
• Alternative investments can involve a high degree of risk.
• Alternative investments may have complex tax structures.
• Fees add up.
• Hedonova has no long-term track record.

For experienced investors, this may be nothing to wince at. And it doesn’t mean alternatives aren’t a good investment. They can provide portfolio diversification and other benefits. Alternatives just tend to carry more risk and complexities. That coupled with Hedonova’s limited company track record makes them more suitable for experienced investors with high risk tolerance.

What you can invest in with Hedonova

• A single, diversified fund of alternative assets

Account types available with Hedonova

Investors in Hedonova become members of a Delaware LLC 506(b) exempted fund and are provided Schedule K-1 forms for tax reporting. For the retirement-focused, Hedonova has partnered with AltoIRA to facilitate investments through self-directed IRAs and 401(k)s.

Where Hedonova shines

Hedonova offers a simple solution for investors who want to diversify their portfolios beyond traditional investments like stocks, bonds and exchange-traded funds (ETFs). And it does so by offering exposure to numerous alternative assets through a single, actively managed fund. As of March 2023, Hedonova’s asset allocation included:

Hedonova is convenient and its structure can help regular investors achieve a level of diversification that was difficult not too long ago. Importantly, this hedge fund is open to both accredited and non-accredited investors alike and there’s no exit fee if you decide you want to invest your money elsewhere — you just may have to wait 30 days for a full withdrawal of funds.

Where Hedonova falls short

Hedonova‘s entry price at $5,000 may seem a little steep, especially compared to other alternative investing platforms. For instance, Fundrise charges a $10 minimum investment to build a portfolio of real estate, while the minimum to invest in wine with Vint is the cost of one share, typically around $50 per share.

Hedonova also has a short track record, both as a company and the long-term performance of its fund. This doesn’t mean the company shouldn’t be worth your consideration, just that it adds more risk to the investment, which is already speculative. But if Hedonova has piqued your interest, be sure to take the necessary time to understand and feel comfortable with the company and its investment.

Hedonova’s fees

Minimum deposit	$5,000
Annual management fee	1%
Performance fee	10%
Exit fee	$0

Is Hedonova legit?

Hedonova is a legitimate company founded in 2020 with offices around the world, including Los Angeles, Estonia, France and Zurich. It was originally created as an alternative investing platform strictly for accredited investors, but it’s now available to all.

According to a Hedonova rep, non-accredited investors and foreign investors invest into a Bahamas-based feeder fund, which then invests into the master fund. The master fund is registered as a Delaware LLC 506(c) exempted company. A master-feeder investment structure is common among hedge funds, allowing domestic and foreign investors to invest in a master fund that combines their assets.

Hedonova’s platform is easy to use

The Hedonova app is in no way complex. It’s clean and user-friendly and feels like a modern investing platform.

Once logged in to the mobile app, you’ll find five tabs in the bottom navigation bar. The first from left to right is a the main dashboard, which highlights your portfolio value, the top holdings in the fund, performance comparison and company updates. Going down the line, the others include a transaction tab, a tab to quickly add funds, a view of the current asset allocation of the fund and the last to access your profile, customer support and other account details.

Beyond that, Hedonova sends out an email to clients every Sunday with information ​​about how the fund has performed compared to the S&P 500 that week.

Hedonova’s app store reviews

Google Play app reviews	5/5 stars based on 164 reviews
Apple App Store app reviews	5/5 stars based on 14 reviews

Hedonova’s customer support

Reach Hedonova‘s customer support in four ways:

• Online form
• Live chat
• WhatsApp
• Scheduled call

How to open an account with Hedonova

1. Go to Hedonova’s site and select “Start investing with $5,000. Then download the app and enter your email and password. Then, select Get Started.
2. Complete your profile by entering your name, email address, phone number and address.
3. Provide your driver’s license number or another form of ID.
4. Add a beneficiary and your bank information for funding, though you can choose a different funding source later.
5. Select your investing goals.

After you’ve submitted your application, Hedonova will review and verify your information. Once verified, you can invest.

Eligibility and required information

How safe is Hedonova?

Hedonova’s platform is generally considered to be safe and secure. It describes in its privacy policy that it employs authentication, monitoring, auditing and encryption measures to safeguard assets and customer information. According to a Hedonova representative, clients’ funds are held with Northern Trust, which is an established financial services company headquartered in Chicago.

The fund itself is exempt from SEC registration under Regulation D of the Securities Act. Moreover, Hedonova is not registered as a broker-dealer and is not a member of the Financial Industry Regulatory Authority (FINRA), nor is it registered as an investment company or an investment adviser. This means investors don’t have certain protections afforded under the Investment Company Act or the Investment Advisers Act.

Frequently asked questions about Hedonova

• What are alternative assets?

  Alternative assets is a term used to describe an asset class that includes investments other than those that fall into conventional categories, such as stocks and bonds. It includes real estate, fine art, wine and cryptocurrencies, among many others.

• How do I invest in Hedonova?

  To invest in Hedonova, you need to complete an application and submit an initial deposit of $5,000. Once approved, you can invest in Hedonova's fund of 16 alternative assets.

• What is a hedge fund for beginners?

  A hedge fund is a privately-held, pooled investment fund that can invest in a wide variety of assets.

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