Liquid Alts Platform HedgeCoVest Launches New Suite of Sector Specific Products

Jul 17 2015 | 3:41pm ET

Hedge fund replication platform HedgeCoVest has unveiled a suite of new products aimed at mimicking the long and short trades of hedge fund managers.

The HedgeCoVest Composite Models are derived from actual hedge fund manager trades, according to a press release. The 15 models are sector-specific investment products enabling investors to access the highest conviction investment ideas from the investment firms signed on to the HedgeCoVest platform. 

"HedgeCoVest is in a unique position to access hedge fund portfolios in real time and create new investment products composed of their largest positions, which are typically the portfolios' main alpha drivers," said Evan Rapoport, CEO of HedgeCoVest, in a statement.

"Our platform extracts the highest conviction and most widely held positions based on information from all the hedge funds on our platform, and assembles them into sector specific investment products including Biotechnology, Basic Materials, Industrials, REITS, Financials, and Technology," he continued.

HedgeCoVest's proprietary platform connects directly into each hedge fund's prime broker and trading systems, ensuring immediate information flow to its proprietary technology, termed the Replicazor. 

This information flow creates a pool of securities that HedgeCoVest reconstructs based on the size of the holding in any given portfolio and the frequency of a specific security. Through this process, the company ascertains the most relevant investment ideas for the HedgeCoVest Composite Models. The technology in place ensures that these Composites are inherently fluid and dynamic, adjusting to any change in the view of a given security and re-balancing accordingly.

Minimum investment sizes range from $5,000-$20,000 per product and currently include 10 - 145 positions in any given investment option.  This provides investors the opportunity to supplement their existing alternative portfolio with a sector-specific investment that caters explicitly to their investment objectives.

"Investors will often seek to supplement their core alternative portfolio with managers who trade securities in a specific industry like Basic Materials or Biotech," continued Rapoport. "These investors can now accomplish the same objective by accessing hedge fund managers' 'best ideas,' but in a liquid, transparent, low cost structure."

Florida-based HedgeCoVest was founded in 2013 by Rapoport, who founded HedgeCo Networks. The firm had 30,000 members and 7,000 funds listed as of January 2015. 

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