Lack of Access
We worked hard to make that first million, but we found ourselves unable to invest in many elite (top 10%) funds due to high minimums. We found ourselves too sophisticated and with too much wealth for the average 60/40 portfolio, but lacking the resources to build a portfolio worthy of a top tier family office or institution. We found ourselves stuck with average, but we knew there was more.
While the ultra wealthy ($100M+) and top tier institutions have been allocating over half of their portfolios to alternative assets for decades to hedge against public market fluctuations and interest rate risk, the rest of us have been left to ride the ups and downs of the public markets.
An elite portfolio is (1) highly diversified across (2) elite (top 10%) funds. We aim to bring you both.
How do you evaluate the quality of product you’re getting? Can you trust what’s in a marketplace or what’s pitched to you by a financial advisor?
It’s nearly impossible to evaluate a hedge fund’s strategy if you don’t have in-depth knowledge of private markets, capital markets, and risk management. That’s why Equi is a hedge fund at its core. We hired a team of world-class traders and analysts from top funds to build proprietary strategies and evaluate thousands of strategies each year from around the world.
Our CIO, Itay Vinik, made his first $1 million trading during the 2008 financial crisis and while managing his own hedge fund, he consistently outperformed benchmarks with almost no correlation to the S&P 500. In 2018, Itay made a name for himself after identifying a faulty volatility product and executing a trade that returned around 500x and produced millions in profit for his LPs. Nour de Vos, our Director of Trading, managed $1 billion at the Swiss hedge fund, Leonteq, by the age of 28, and was one of the youngest to ever do so.
We treat your money like our own, literally; our founders and CIO have invested over 70% of their own wealth into Equi’s strategies.
Profiting from Volatility
Almost a fifth of all US dollars in circulation were printed by the Federal Reserve in 2020. This led to annual inflation jumping from 1.4% in 2020 to 7% in 2021, and 6.5% in 2022. Passive index investing works wonders in a declining interest rate environment, but active investing has proven far more effective when interest rates are rising or fluctuating.
One of the “dirty secrets” of the wealth management industry is that every 10-20 years, there are “lost decades” in equity markets where large amounts of volatility cover up the fact that markets are largely moving sideways. The most recent example is 2000-2012, but you can also look at 1969-1981 or 1929-1954. The vast majority of equity returns come during cyclical bull markets, like the one we’ve experienced since 2012, but you can absolutely profit from volatility and we fully intend to.
In the new market regime we’re entering, volatility will be the new normal and investors are going to require a greater variety of return drivers in their portfolios to achieve the steady compounding they desire.
The Future We Are Building
Dissatisfied with the status quo, we decided to build a new type of financial institution – one that was equal parts hedge fund and tech platform.
To create a world in which investors can maintain or improve their financial position in all market environments so they can focus on the things that matter – family, travel, building that next startup.
To offer access to the highest quality private market products.
We are here for you.
The maximizers who know that perfection is an asymptote towards which we are constantly striving.
The discerning investors who understand that not all investment products are created equal.
We are those people.
Are you with us?