Hivelr Alpha Fund

Principal Risk. Because the value of your investment in the Portfolio will fluctuate, there is the risk that you will lose money. An investment in the Portfolio is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Portfolio’s principal risks include: equity market risk, profitability investment risk, value investment risk, small and mid-cap company risk, tax-management strategy risk, derivatives risk, securities lending risk, operational risk, and cyber security risk.

Equity Market Risk. Even a long-term investment approach cannot guarantee a profit. Economic, market, political, and issuer-specific conditions and events will cause the value of equity securities, and the Portfolio that owns them, to rise or fall. Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices.

Profitability Investment Risk. High relative profitability stocks may perform differently from the market as a whole and an investment strategy purchasing these securities may cause the Portfolio to at times underperform equity funds that use other investment strategies.

Value Investment Risk. Value stocks may perform differently from the market as a whole, and an investment strategy purchasing these securities may cause the Portfolio to at times underperform equity funds that use other investment strategies. Value stocks can react differently to political, economic, and industry developments than the market as a whole and other types of stocks. Value stocks also may underperform the market for long periods of time.

Small and Mid-Cap Company Risk. Securities of small and mid-cap companies are often less liquid than those of large companies and this could make it difficult to sell a small or mid-cap company security at a desired time or price. As a result, small and mid-cap company stocks may fluctuate relatively more in price. In general, small and mid-capitalization companies are also more vulnerable than larger companies to adverse business or economic developments and they may have more limited resources.

Tax-Management Strategy Risk. The tax-management strategies may alter investment decisions and affect portfolio holdings, when compared to those of non-tax managed funds. The Advisor anticipates that performance of the Portfolio may deviate from that of non-tax managed funds.

Market Trading Risk. Active trading markets for Portfolio shares may not be developed or maintained by market makers or authorized participants. Authorized participants are not obligated to make a market in the Portfolio’s shares or to submit purchase or redemption orders for creation units. Trading in shares on an exchange may be halted in certain circumstances. There can be no assurance that the requirements of the listing exchange necessary to maintain the listing of the Portfolio will continue to be met.

Market Trading Risk. Active trading markets for Portfolio shares may not be developed or maintained by market makers or authorized participants. Authorized participants are not obligated to make a market in the Portfolio’s shares or to submit purchase or redemption orders for creation units. Trading in shares on an exchange may be halted in certain circumstances. There can be no assurance that the requirements of the listing exchange necessary to maintain the listing of the Portfolio will continue to be met.

Derivatives Risk. Derivatives are instruments, such as futures contracts, and options thereon, whose value is derived from that of other assets, rates or indices. The use of derivatives for non-hedging purposes may be considered to carry more risk than other types of investments. When the Portfolio uses derivatives, the Portfolio will be directly exposed to the risks of those derivatives. Derivative instruments are subject to a number of risks including counterparty, liquidity, interest rate, market, credit and management risks, as well as the risk of improper valuation. Changes in the value of a derivative may not correlate perfectly with the underlying asset, rate or index, and the Portfolio could lose more than the principal amount invested. The fund may or may not use derivatives for hedging purposes, and it will provide full disclosure on the fund page.

Securities Lending Risk. Securities lending involves the risk that the borrower may fail to return the securities in a timely manner or at all. As a result, the Portfolio may lose money and there may be a delay in recovering the loaned securities. The Portfolio could also lose money if it does not recover the securities and/or the value of the collateral falls, including the value of investments made with cash collateral. Securities lending also may have certain adverse tax consequences.

Operational Risk. Operational risks include human error, changes in personnel, system changes, faults in communication, and failures in systems, technology, or processes. Various operational events or circumstances are outside the Advisor’s control, including instances at third parties. The Portfolio and the Advisor seek to reduce these operational risks through controls and procedures. However, these measures do not address every possible risk and may be inadequate to address these risks.

Cyber Security Risk. The Portfolio’s and its service providers’ use of internet, technology and information systems may expose the Portfolio to potential risks linked to cyber security breaches of those technological or information systems. Cyber security breaches, amongst other things, could allow an unauthorized party to gain access to proprietary information, customer data, or fund assets, or cause the Portfolio and/or its service providers to suffer data corruption or lose operational functionality.

This information is not meant to constitute investment advice, a recommendation of any securities product or investment strategy (including account type), or an offer of any services or products for sale, nor is it intended to provide a sufficient basis on which to make an investment decision. Investors should consult with a financial professional regarding their individual circumstances before making investment decisions.

 

Asset Class

Equities

Hedge Fund Strategy

Long Only

Base Currency

USD

 

Assets Under Management

$423,126.45

as of Sep 16 2021

About Hivelr Alpha Fund

Hivelr Alpha Fund is designed to gain a minimum of 150% annual return over a three (3) years period, with Alpha more than 80% and the expected maximum volatility of 34%. The strategy focuses on the high-grading of the best-performing securities in global financial markets. A US$100,000 investment in January 2019 has grown to US$1.3 million in August 2021. Although the COVID-19 pandemic accelerated the portfolio growth, the momentum is expected to sustain a similar rate post-pandemic as the securities in Hivelr Alpha Fund pass the disruptive innovation tests. 

Investment Objective

  • Long-term capital appreciation. 
  • Hedge against short-term volatility without the use of derivatives, leverage, margin, short-selling, and other financial instruments. 
  • Low operating and trading costs by periodic rebalancing vs. high frequency trading. 

Key Features

  • Correlations and diversification are used to hedge against short-term volatility and minimize downward exposure.
  • Shorter recovery time and underwater period than S&P 500.
  • Lower Historical Value-at-Risk (VaR) against S&P 500, -1.12% vs. -7.07%. 
  • Lower Maximum Drawdown against S&P 500, -9.08% vs. -19.43%.

Performance

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. Past performance is not a guarantee of future results. Investment process is subject to change.

Annual Returns

Monthly Returns

Returns & Risks

Drawdown & Historical Stress Period

Fees

Management FeePerformance FeeAnnual Return TargetTotal Fees
2%0Less than 10%2%
2%2%10% – 49.99%4%
2%6%50% – 99.99%6%
2%8%>100%10%

Hivelr fees are performance-based and only paid at the end of 12 months period after the fund is fully invested- zero fee upfront. Clients are investing their trust in us, and Hivelr is investing the fees on the fund performance. Hivelr will take zero performance fee if the fund reaches less than 10% annual return.

Investment Minimums

Individual Investors

$100,000

Institutional Investors

$1,000,000

 

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 only 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.