HEDGING YOUR BETS

REDUCED RISK INVESTING IN COMPETING INNOVATION & TECHNOLOGY

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Coal and oil fossil fuels are on their way out, with the smart money heading for renewables, but what technology should you be investing in, with so many choices as to chemistry for energy storage. You could invest in lithium batteries, or you could invest in hydrogen compounds. But why not invest in both, to be sure you have a stake in both camps?

Investing in new technology can be a risky business. Better then to hedge your bets. But what is a Hedge Fund?

If you’re looking for an easy and convenient way to invest, funds are a popular choice for both novice and experienced investors.

A Hedge Fund is one of the types of alternate investment vehicles wherein Hedge Fund managers pool capital from wealthy and sophisticated investors to spend in a variety of asset classes using different strategies which are complex. These strategies can be Equity Long-Short, Event-driven, Distressed Asset, Convertible Arbitrage, and so on. Due to its inherent style, Hedge Fund strategies are highly risky, mostly leveraged and illiquid, and require Investors to understand the risk behind the portfolios. Also, due to limited regulations governing Hedge Funds, these are not as transparent, unlike Mutual Funds.

A hedge fund is a name for an investment partnership that has freer rein to invest aggressively and in a wider variety of financial products than most mutual funds. It's the marriage of a professional fund manager, who is often known as the general partner, and the investors, sometimes known as the limited partners. Together, they pool their money into the fund.

POPULAR HEDGE FUND STRATEGIES :

Long/Short Equity: Long/short equity works by exploiting profit opportunities in both potential upside and downside expected price moves. This strategy takes long positions in stocks identified as being relatively underpriced while selling short stocks that are deemed to be overpriced.

Equity Market Neutral: Equity market neutral (EMN) describes an investment strategy where the manager attempts to exploit differences in stock prices by being long and short an equal amount in closely related stocks. These stocks may be within the same sector, industry, and country, or they may simply share similar characteristics such as market capitalization and be historically correlated. EMN funds are created with the intention of producing positive returns regardless of whether the overall market is bullish or bearish. 

Merger Arbitrage: Merger Arbitrage or risk arb involves simultaneously purchasing and selling the stocks of two merging companies to create riskless profits. A merger arbitrageur reviews the probability of a merger not closing on time or at all.

Global Macro: A global macro strategy bases its holdings primarily on the overall economic and political views of various countries or their macroeconomic principles. Holdings may include long and short positions in equity, fixed income, currency, commodities, and futures markets.

Volatility Arbitrage: Volatility arbitrage attempts to profit from the difference between the forecasted future price-volatility of an asset, like a stock, and the implied volatility of options based on that asset. It may also look to volatility spreads to either widen or narrow to predicted levels. This strategy employs options and other derivative contracts.

Convertible Bond Arbitrage: Convertible bond arbitrage involves taking simultaneous long and short positions in a convertible bond and its underlying stock. The arbitrageur hopes to profit from movement in the market by having the appropriate hedge between long and short positions. 

Another popular strategy is the fund of funds approach which involves mixing and matching other hedge funds and pooled investment vehicles. This blending of strategies and asset classes aims to provide a more stable long-term investment return than those of any of the individual funds. Returns, risk, and volatility can be controlled by the mix of underlying strategies and funds.

Hedge funds face little regulation from the Securities and Exchange Commission, (SEC) compared to other investment vehicles. 

A hedge fund is an official partnership of investors who pool money together to be guided by professional management firms - just like mutual funds. But that's where the similarities end. Hedge funds aren't regulated as much and operate with far less disclosure. They pursue more flexible and risky strategies in the hopes of netting big gains for investors, which, in turn, result in big profits for fund managers. But perhaps what sets them apart from mutual funds the most is that they have much higher minimum investment requirements.

TRANSPORT FUTURE PROOFING - HEDGING YOUR BETS

To our way of thinking, and something that conventional battery stakeholders might want to consider, is that batteries can also be hybrids using ammonia, hydrogen and methanol - as examples.

The difference is that our Universal Batteries (UBs) are quickly detachable, rather than bolted in to the vehicle frame. Meaning, that you can swap from one technology to another in minutes, as new technology hits the market. UB's are thus future proofing for transport stakeholders, be they vehicle manufacturers or energy supply companies.

By way of example, ordinary exchange recharging by swapping battery packs is making headway in China and India, with examples in Europe and the US.

At the moment, this is a less popular as a way of (instantly) recharging EV's, despite obvious load levelling advantages, where generation is from solar and wind electricity. But, nobody has thought to include alternative chemistries, as a means of future proofing investments in technology that stands lesser chance of breaking into a mature market, without standardization.

The concept is well understood with Stock Market traders, but not anticipated by current stakeholders.

Universal Batteries is not in the business of research and development of the different chemistries, it is in the business of providing an infrastructure that companies developing the technology can join and advantage themselves of, just by scaling their systems to fit within standard format cartridges, such as to mesh with SmartNet service stations for handling and stock control purposes.

The Smart infrastructure and Universal energy cartridge designs and features, together with computer controls and geodata forms part of a portfolio of Intellectual Property, that investors can buy into and share, by way of easing the transition from fossil fuels to net zero, while hedging as to technological advances in the future.

This is not a prospectus.

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