Q: Why is it called “HedgeFolios?”

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 help you profit during market declines and plunges.

Through our Sector Timing and Allocation approach, our HedgeFolios are designed to maximize exposure to the strongest sectors and, when appropriate, profit from declines in the weakest sectors via inverse ETFs. Therefore, HedgeFolios aims to minimize your risk and maximize your potential gains in any market environment.

Q: Is HedgeFolios a “hedge fund” or “managed account” program?

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 $150,000 in a brokerage or over $1 million. And if you act now, you can still get our Platinum Membership at a 25% discounted rate. That’s why many 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.

Q: Does the HedgeFolios program use individual stocks?

A: HedgeFolios utilizes ETFs and ETNs. This represents considerable savings over using a mutual fund portfolio, or a portfolio of individual stocks. We believe ETFs provide higher diversification, better liquidity, and are much more cost-effective.

Q: Can I “buy into” more than one HedgeFolio at a time?

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.

Q: Will HedgeFolios do any “short-selling” of equities?

A: HedgeFolios does not do any short-selling directly. However, our three flagship model HedgeFolios (Opportunistic, Global Equity, and Income) will be able to buy inverse (or “bearish”) ETFs, which are designed to rise as their target 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 inverse funds in the weakest sectors to hedge our exposure. HedgeFolios are designed not only to preserve wealth during market plunges, but also to profit during times of adversity.

Q: What if an investor doesn’t want to use the inverse funds?

A. They have a choice. Our three flagship HedgeFolios (Opportunistic, Global Equity, and Income) will utilize these inverse ETFs when appropriate, while the two “Conservative” HedgeFolios will not. In times of adversity, the “Conservative” HedgeFolios will seek out very defensive investments including cash and US Treasury securities.