FREQUENTLY ASKED QUESTIONS
A: We gave this revolutionary active investing program the name “HedgeFolios” because we wanted to offer model portfolios that have the ability to “hedge,” or in other words, protect your assets and even profit during market declines and plunges.
Through our Sector Timing and Allocation approach, our HedgeFolios are designed to be long the strongest sectors, and when appropriate, be short the weakest sectors via “inverse ETFs & inverse mutual funds.” Therefore, HedgeFolios aims to minimize your risk and maximize your potential gains in any market environment.
A: The advantage of HedgeFolios is that it is NOT a hedge fund or managed account program. You don’t send you capital to a stranger, you don’t give anyone ‘power of attorney’ over your account, and you don’t pay the very high management fees based on the amount of assets in your account.
Contrary to managed accounts, the membership fee is the same for everyone, whether you have $100,000 in a brokerage or over $1 million. And if you act now, you can still get our Platinum Membership at the 25% discounted rate. That’s why investors currently using a money manager for their large investment accounts are moving to our HedgeFolios program. HedgeFolios offers active investors like you a simple and cost-effective way to easily implement our best analysis in your own investing account.
A: HedgeFolios utilizes ETFs or derivations, such as ETNs, as well as no-load mutual funds when we deem it prudent, such as times of great market volatility when ETFs may be subject to very wide swings. This represents considerable savings over using a mutual fund portfolio, or individual stock portfolios. We believe ETF’s and no-load mutual funds provide higher diversification, better liquidity, and are much more cost effective.
A: Yes, you will need to sign up for an account at Folio Investing, a completely independent third party online brokerage firm. Our model HedgeFolios are hosted at Folio Investing, whereby you will be able to view, track, and replicate our models through your own account simply with a couple of mouse clicks.
To learn more about Folio Investing, please visit Folio Investing – About Us.
A: Of course! You can replicate our models at any brokerage firm outside of Folio Investing. However, we believe one of the greatest advantages, and main reasons we created this program, is the convenience and simplicity in replicating our models.
Any time we make a change to our model HedgeFolios, our members are sent an email notification indicating this change. Once the email is received, all you need to do is log in and with two clicks of a button, replicate the exact changes in your own account. This saves our members the confusion and tedious work involved in processing a number of trades each time we make a change to our models (ie: buying new ETF’s, selling current ETF’s, calculating asset allocations, rebalancing, etc.). It also saves our members money as Folio Investing offers some of the lowest trading fees for any brokerage firm.
For more on Folio Investing’s pricing, please visit Folio Investing – Pricing.
A: Although a membership in HedgeFolios is available to anyone, the restrictions on U.S. brokerage firms by other countries make the transaction part of the program only available to U.S. citizens and U.S. resident aliens, as defined by Folio Investing. For more on who can open an account, please visit Folio Investing – Open an account.
A: Yes, you will have access to all 5 of the HedgeFolios we offer! You will have the ability to split your assets as you wish among the different HedgeFolios, or simply choose to invest alongside one HedgeFolio at a time. The choice is yours.
A: Yes, of course you can! Through your “Watch Account” in Folio Investing, you would be able to add the HedgeFolios to your account to do “paper trading” (ie: not use real money to invest with the HedgeFolios). This would allow you to view the holdings, see the changes, and get a feel for which HedgeFolios you think is best for your investment goals. Then, once your Investing Account is funded, you simply follow the same steps you took to add the HedgeFolios to your Watch Account.
A: Questions regarding your brokerage/ investment account can best be answered by Folio Investing. However, the account opening is very standard as with any brokerage firm. We understand that you can fund your Folio Investing account in a variety of ways, from wire transfer, to Electronic Fund Transfer, Direct Deposit, among others. For more information on funding your Folio Investing account, please visit Folio Investing – Fund an Account.
A: Our HedgeFolios program will work with any type of account offered by Folio Investing. Currently, Folio Investing doesn’t offer a 401k account, but instead offers a Rollover IRA. This account type would allow you to move money from your current 401k (or other retirement account) to a Folio Investing retirement account without incurring taxes or penalties. We are not in a position to give advice on this and suggest you get more information on retirement accounts from Folio Investing by visiting Folio Investing – Account Types.
A: HedgeFolios does not do any short-selling directly. However, our three flagship model HedgeFolios (Opportunistic, Global Equity, and Conservative) will be able to buy the inverse (or “bearish”) ETF’s or mutual funds, which are designed to rise as the index or sector declines. In effect, the investment fund is shorting the underlying equities, but you would simply be buying the inverse fund. Therefore, you would not need a margin account and would be able to profit from market declines. In times of adversity, we aim to hedge long positions in the strong sectors and use the inverse funds in the weak sectors to hedge our exposure. HedgeFolios are designed to preserve wealth during market plunges, but also be able to profit during times of adversity.
A: They have a choice. Our three flagship HedgeFolios (Opportunistic, Global Equity, and Income) will utilize these inverse ETFs and mutual funds when appropriate, while the two “Conservative” HedgeFolios will not. In time of adversity, the “conservative” HedgeFolios will seek out very defensive investments, including cash and US Treasury securities.
Q: What is the difference between the HedgeFolios program offered by Dohmen Strategies, LLC and the Private Portfolios service offered by your related firm Dohmen Capital?
A: The Private Portfolios service is similar to HedgeFolios, however, the HedgeFolios program offers more active investing with much more convenience. The positions may or may not be similar at any one time.
The Private Portfolios service is for longer-term investors, where we issue “Action Alerts” to make trades according to the market. The investor calculates and enters each trade on his own. Therefore, the Private Portfolios are not as actively traded as the HedgeFolios program. Hedgefolios is also rebalanced when there are trades, whereas in Private Portfolios you would have to do that manually.
HedgeFolios also differs from Private Portfolios since there are three HedgeFolios (at this time), each with a different strategy and goal (ie: Income, Global Equity, and Opportunistic). For descriptions of each of the HedgeFolios, please visit https://hedgefolios.com/how-it-works/
With the Private Portfolios, each level has a maximum number of recommendations (Achiever = up to 4, Executive = up to 8, Chairman = up to 20). All of our HedgeFolios will hold 10 or fewer ETF’s at a time.
While the Private Portfolios service manages a portfolio on paper (with recommendations on specific ETFs, allocations, and actions to take), HedgeFolios takes this one step further and makes it extremely simple to line up your own portfolio with our models, without the trading hassles.
HedgeFolios offers its members 3 different models, all of which can be replicated in your own Folio Investing accounts. The simplicity and convenience of the trades is a huge advantage when comparing it to Private Portfolios. HedgeFolios is a much more convenient, efficient, and timely way to manage your own portfolio with our guidance.