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FAQs
FAQS
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Government RegulationsLike mutual funds, hedge funds pool investors’ money and invest the money in an effort to make a positive return. Hedge funds typically have more flexible investment strategies than mutual funds. Many hedge funds seek to profit in all kinds of markets by using leverage (in other words, borrowing to increase investment exposure as well as risk), short-selling and other speculative investment practices that are not often used by mutual funds. Unlike mutual funds, hedge funds are not subject to some of the regulations that are designed to protect investors. Depending on the amount of assets in the hedge funds advised by a manager, some hedge fund managers may not be required to register or to file public reports with the SEC. Hedge funds, however, are subject to the same prohibitions against fraud as are other market participants, and their managers owe a fiduciary duty to the funds that they manage. Hedge fund investors do not receive all of the federal and state law protections that commonly apply to most mutual funds. For example, hedge funds are not required to provide the same level of disclosure as you would receive from mutual funds. Without the disclosure that the securities laws require for most mutual funds, it can be more difficult to fully evaluate the terms of an investment in a hedge fund. It may also be difficult to verify representations you receive from a hedge fund. https://www.sec.gov/fast-answers/answershedgehtm.html
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What is the minimum investment?EViROCKS wanted to bring the entry into conservative Hedge Fund investing low enough for anyone. The minimum investment at EViROCKS is US$5,000.00. The traditional Hedge Fund requires a minimum investment of between $250,000 and $500,000 USD. The fund manager can waive the minimum at his sole discretion but this is usually only undertaken to accommodate serious investors who stipulate intent to allocate substantially more than the stated minimum, depending on how this initial allocation performs.
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Are you an “offshore” hedge fund?EViROCKS is not an offshore hedge fund. We are domiciled inside of the USA. Like on-line banks that incur lower operating costs, EViROCKS is also an on-line entity; reducing operational costs allows us to pass those savings to our clients. If we create any other entities, within the USA or outside of the USA in order to expand what vehicles we can invests in, we will always let our clients know. Unlike many hedge funds, EViROCKS never allocates more than 20% in any region or asset, ensuring that our fund is extremely diversified is our specialty.
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What fee structure do most hedge funds adopt?EViROCKS fee structure is the standard “1 and 20”: a 1% management fee (% of assets) and a 20% performance fee (% of profits), annually. Hedge funds do this, as an incentive to make the fund and clients’ money. If the fund loses money, the company does not collect and fee on the performance; only on the management of the account.(Normally the management fee is collected in .25% quarterly trenches, in advance, and the performance fee is calculated annually).
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Do investors still pay fees even if the fund loses money?The investor always pays the management fee on assets held within the fund, but performance fees are applicable only after positive performance.
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Who typically invests in hedge funds?Usually defined as “Accredited Investors”, individual investors, various institutions, corporate treasuries, endowments, fund of funds, family offices, private banks and pensions invest in hedge funds.
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Why does it take 30 days to withdraw funds?Posted on February 25, 2020 Because EViROCKS believes in true diversification, unlike equities alone, we require a 30 day window of time, in order to sell any non-traditional assets. In the event that an asset class requires more time to liquidate, EViROCKS will use company funds in reserve to cash out the client.By a general rule, banks are only required to maintain 10% of all deposits on hand, in order to fulfill client withdrawals.EViROCKS holds twice the traditional depository rate of a bank, to ensure withdrawals are smooth.
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How safe are my funds?EViROCKS only has one strategy and one alone; that of diversifying our funds through the best-in-class investments around; Safety first, growth second. We have a great responsibility, not only with the corporate institutions that invest with us, but also with individuals alike. Many of our investors have experienced these type of risks in their businesses and in their lives; and as such EViROCKS has taken on the responsibility to create an extremely diversified investment which consists of: 20% growth stocks, 20% High yield safe dividend stocks, 20% in income properties, 10% in Gold, 10% in Silver, 10% in Inverse SPY Indexes, and 10% in other unique opportunities. Being diversified isn’t always good enough; you must manage each holding and cut your losses early. Our {AI} Artificial Intelligence software called “Isabella”, alerts us on when to cut our losses early. In back tests, this early warning system has helped us lower our drawdowns during major market corrections from 40% & 50%, down to only 12% and 18% respectively; and because we re diversified in multiple ways, our fund typically bounces back much faster during major market corrections.
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What is an Accredited Investor/Qualified Purchaser?This can vary from jurisdiction to jurisdiction, depending on the investing process in question and is something that each individual should verify within their own Jurisdiction prior to investing with a hedge fund. Put simply, first, you must attest in writing that you understand the risks in trading, and second, that you have experience with investing – be-it hands on or learned, and third, you must attest in writing that you are only investing funds that you can afford to lose. As a general rule, you should never invest more than you are willing to lose.
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What is a lock-up period?This is the time period that you must hold your assets (“lock-up” your money) within a fund before they can be removed. The typical lock-up period at EViROCKS is 6 months, after which point a client can withdraw their funds at any time. After the lockup period, the average time to withdraw 100% of the clients’ funds is within 30 days.
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Who are EViROCKS current users?EViROCKS accredited investors include, but are not limited to the following: individuals, families, businesses, treasuries, trusts and endowments, family offices and multi-family offices, pension funds, institutional investors, sovereign wealth funds, private banks, portfolio managers, financial advisors, hedge funds, funds of funds, prime brokers, administrators, market research firms, and Islamic funds. Sector Breakdown of Audience: 61% Investors, 10 % Fund Services, and 29% Businesses Geographic Breakdown of Audience: 28% USA, 31% Europe, 38% Asia, and 3%Middle East
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How does EViROCKS report profits, before or after fees?"EViROCKS funds report their returns from previous years “net of all fees.” Variations occur but, regardless of which reporting method is received, pre-audit figures are subject to adjustment after year end (usually a minor or nominal adjustment).
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What does EViROCKS offer for free?You will receive access to our newsletters and periodic updates to some of our holdings. A visitor can follow most of our holdings, without being an investor. We offer this service to help those that prefer managing their own investments. Our portfolio listings are not updated to the public monthly, because our AI “Isabella” provides our Fund Managers constantly changing analysis on equities, which means that EViROCKS is always adjusting positions almost daily.
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