Hivelr | Quantitative Hedge Fund

Introduction

Who are we?

Hivelr | Quantitative Hedge Fund is a quantitative investment company trading in global financial markets, dedicated to producing exceptional returns for its investors by strictly adhering to mathematical models, statistical methods, big data, and fundamental analysis.

Hivelr Quantitative Investing is about implementing the great academic research in Quantitative Finance and applying Nobel Prize-Winning Financial Economic Theories into practice.

HIVELR | QUANTITATIVE HEDGE FUND - AT A GLANCE

$0.56M

Assets Under Management (AUM) in USD.

2019

Hivelr was first developed for an MBA class assignment at the University of Illinois at Urbana-Champaign.

3

Quantitative Hedge Fund Portfolios. Hivelr Funds - Alpha, Beta, Omega.

Eight

Nobel Prize-Winning Financial Economic Theories in Hivelr portfolio constructions.
As of September 6, 2021.
Assets Under Management (AUM)

How much does it grow?

Investment Approach

How do we invest?

01

Long-Term Investing:

Harnessing the Power of an Efficient Market and Compounding Interest.

Growth of US$1,000 from January 1926 to December 2020.
Micro Cap Stocks | $74 Million
Small Cap Stocks | $41 Million
Large Cap Stocks | $11 Million
Balanced Portfolio | $1.6 Million
Government Bonds | $59,458
Treasury Bills | $29,573
Inflation | $15,139

At Hivelr, our investment approach is based on the Power of an Efficient Market and Compounding Interest in the long term.

The financial markets have rewarded long-term investors in the last century. A US$1,000 investment in 1926 was worth $74 million in December 2020 when invested in US Micro Cap Stocks, $11 million in US Large Cap Stocks, and $15,139 in cash.

During that period, there were 16 Recessions, the Great Depression of 1929, 2 World Wars, Atomic Bombings of Hiroshima and Nagasaki in 1945, 1950 Korean War, 1955 Vietnam War, 1947 - 1990 Cold War, 1970 Oil Crisis, 1990 Gulf War, 9/11, 2003 Iraq War, the Great Financial Crisis of 2008, and COVID-19 Pandemic.

Most skeptics preached that the world was going to end at some point and bet against the market. However, the economy continues to grow, fueled by technological breakthroughs. The stock market gained more than 1,099,900% in the last 94 years.

At Hivelr, our investment portfolios are designed, constructed, and managed to harness the long term POWER of an EFFICIENT MARKET and COMPOUNDING INTEREST. Rather than relying on complicated forecasts and predictions to outperform others, we believe in an Efficient Market where the security prices are set by a collective knowledge of millions of buyers and sellers.

Letting the Efficient Market do its job to drive information into prices frees us to take a more systematic and less subjective approach to investing. It also allows us to design, construct, and manage portfolios efficiently and better serve our investors.

In addition, rather than engaging in High-Frequency Trading to gain short-term profits, we prefer to buy, hold, reinvest dividends, and rebalance securities in our portfolios to exploit the power of long-term compounding interest.

Long-Term Investing is the foundation of our investment approach that we can implement consistently to produce exceptional returns in the long run, even in challenging market conditions.

02

Data-Driven Investing:

Risk Management.

Applying Academic Research in Quantitative Finance and Nobel Prize-Winning Financial Economic Theories.

Hivelr's investment approach is based on Quantitative Data; not influenced by short-term volatility, hype, and speculations.

Data-Driven Investing is the backbone of our RISK MANAGEMENT. It is used to eliminate human emotional factors in making investment decisions (data vs. opinion). Short-term volatility, hype, and speculations drive the traditional investment market, which causes the investors to buy-high/sell-low and incur a significant investment loss. The hype about bitcoin, dog-themed cryptocurrency, and meme stocks - e.g., GME, AMC - makes Data-Driven Investing more crucial than before.

Risk management is the cornerstone of our investment approach. At Hivelr, we utilize Correlations as the hedge against short-term volatility to minimize our downward exposure. We also use a Multi-Factor Model to measure the portfolio tilt against Market Risk, Value, Growth, Size, Profitability, Investment, and Momentum. And, our Portfolio Construction Method allows us to optimize the expected returns given a level of risk.

At Hivelr, we develop mathematical and statistical models to apply decades of academic research to investment solutions. Even though the models provide helpful insight, but they are incomplete. It's in the gap between reality and a model, where sound judgement and experience matter. We believe in continuous improvement and commit to fine-tuning our method to close the model gap and increase the model certainty.

03

Disciplined Investing.

Long-Term and Data-Driven Investing have provided the foundation for Hivelr's investment approach. However, the success of the portfolios will depend on the actual trading executions, trust in the data, and enduring belief in the portfolio model despite the noise from the markets.

At Hivelr, we continue to back-test our models, periodically rebalance our portfolios, and incorporate new data to reduce the model uncertainty. However, the most challenging aspect for any portfolio manager is when the news and markets go against our portfolio decisions.

Disciplined Investing allows us to make unpopular investment decisions, being a contrarian investor, and avoid speculations. It is a challenging situation in the short term as it may negatively impact the portfolio returns, but it will pay huge dividends in the long term.

04

Disruptive Innovation.

Disruption is everywhere driven by innovation, technological breakthroughs, and shifts in consumer behavior. Disruptive Innovation is an innovation that creates a new market and eventually displaces the established market-leading companies.

For example, the arrival of the digital camera has disrupted the chemical film business and bankrupted Kodak. Netflix replaced Blockbuster's market share completely by offering media streaming services. And, the launch of Apple's iPhone and App ecosystem has cannibalized Nokia and BlackBerry's market overnight.

At Hivelr, we conduct a thorough Disruptive Innovation analysis of every individual security because it is crucial to understand the difference between Undervalued Stocks vs. Disrupted Stocks. Both stocks have similar characteristics of declining share price and become Cheap Stocks, but only one of them will recover while the others will go bankrupt.

Average investors tend to dive into buying Cheap Stocks, following the Value Investing principle and Cigar Butts method popularized by Benjamin Graham and Warren Buffett. However, Cheap Stocks do not always mean profitable stocks because they could be Unrecoverable Disrupted Stocks like Kodak, Blockbuster, Nokia, and BlackBerry, including the original Berkshire Hathaway, a disrupted textile manufacturing company.

At Hivelr, we carefully analyze the business model, sustainable competitive advantage, and industry competition through a fundamental analysis before making any investment decision. We design our hedge fund portfolios to establish a Long position in Undervalued Stocks and set a Short position in Disrupted Stocks. In the future, we plan to create a Multi-Factor Model to identify Disruptive Innovation at the portfolio level.

05

Momentum.

At Hivelr, we factor our model against momentum and measure its impact on our portfolio. The momentum effect allows securities that perform well in the past to continue to do well, while those that perform poorly continue to do poorly.

We discover evidence that momentum, at systematic and idiosyncratic levels, accelerates our portfolio growth faster than expected. However, it can be the source of volatility due to speculative trading by other market participants.

At Hivelr, we evaluate the momentum effect carefully and fine-tuning our methods to minimize its negative impact and continue to accelerate our portfolio returns.

The Heart of Hivelr Investing

A Commitment to Our Investors.

Hivelr Investing is about providing a successful investment experience.

That means more than just returns. It means offering peace of mind because investors know that a transparent approach backed by decades of research is powering every decision.

Markets go up, and they go down. The goal of Hivelr Investing is to help investors be prepared, so they can stick with their plan and do not engage in any speculative or emotional decisions.

Quantitative Hedge Fund Portfolios

Hivelr Funds - Alpha, Beta, and Omega.

Growth of US$100,000
Since January 1, 2019. The investment performance was based on a back testing result conducted in July 2021. Past performance is no guarantee of future results. Investors should conduct their own analysis and consult with professional advisors prior to making any investment decisions. Diversification does not eliminate the risk of experiencing investment loss. Investment process is subject to change without prior notice.

How to Invest?

Contact Us

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Important Note:

Hivelr | Quantitative Hedge Fund falls into the Alternative Investment category and is only available to accredited investors. Currently, Hivelr | Quantitative Hedge Fund is not a licensed financial advisor, registered investment advisor, or registered broker-dealers. We serve clients who agree with our terms and conditions. Investors should conduct their own analysis and consult with professional advisors before making any investment decisions. Past performance is no guarantee of future results. All information is given in good faith and without warranty (or guarantee) and should not be considered investment advice or an offer for any security for sale.

DISCLAIMER

Hivelr | Quantitative Hedge Fund and Hivelr | Business Journal refers to the Hivelr separate but affiliated entities generally, rather than to one particular entity. Hivelr is licensed and operated by GrandCliff Management Inc. (the "Legal Entity" responsible for any product and services under Hivelr name). Hivelr | Quantitative Hedge Fund, and its operating company GrandCliff Management Inc., is not a licensed financial advisor, registered investment advisor, or registered broker-dealers. Investors should conduct their own analysis and consult with professional advisors prior to making any investment decisions. Past performance is no guarantee of future results. All information is given in good faith and without warranty (or guarantee) and should not be considered investment advice or an offer for any security for sale.