John Zhang is a 27-year-old entrepreneur who has always dreamed of starting a hedge fund when he was younger. Today, he’s the CEO of WealthGap, a robo financial advisor that manages hedge fund portfolios for investors and helps them build wealth in the long run. With time and technology at his aid, Zhang is on a mission to reduce the wealth gap by allowing everyone to invest in hedge fund portfolios. His mission almost seems noble, and it is certain to take all that he has in order to come true. Here, he shares insights on how he envisions WealthGap to unveil itself to young investors.
Hedge fund no longer a billionaires-only club
According to Zhang, hedge funds tend to accept capital exclusively from high net worth individuals and major institutions. This approach has managed to keep those who are less-than-billionaires either staring in from the windows or completely away from the business of hedge funds. In his opinion, owing to the exorbitant fee of over 10 million dollars required to invest with an elite hedge fund on Wall Street, many find it difficult or next to impossible to learn the trade, let alone reap benefits from it. Zhang hopes to challenge this approach and narrow the line by offering his clients the best financial products for a minimum of 5,000 dollars. Additionally, he shares that there is a 0% performance fee, a 1% management fee, and no investment lockup period when dealing with WealthGap.
Hedge fund details now at fingertips
Through WealthGap, the young entrepreneur has tried creating an application through which people can download and invest in hedge fund quality portfolios. This means that critical and timely information will be available to all investors without having to waste time, effort, and money traversing the city to get updates from their advisors, Zhang says. For his venture, he has employed AI to its full effect to assess the changing market conditions and consumer behaviors. Automation, he believes, will help in gauging the clients’ financial goals and risk tolerance and guide them in making the best investment decisions, thereby translating to higher long-term returns.
Provision of quality hedge fund at a quality price
Zhang’s business model is as simple as it seems. He knows that not all hedge fund portfolios make the cut in the market – some dwindle because they fail to match up the quality as others. This is where WealthGap comes in. Zhang adds, “A lot of hedge funds do not sustain because they charge exorbitant fees from their clients. If I replicate the portfolios of some of the most elite hedge funds on Wall Street and charge a minimal fee, then there is a good chance of market outperformance.”
Just because a thing isn’t being used doesn’t mean that it isn’t working. And, if it’s working, it doesn’t mean that it can’t be improved. This seems to be the core philosophy of Zhang’s passion and his will to equal the market. This is only the beginning of his journey, and only time will decide what happens next.
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