2 ms·
You seem to be using the term "hedging"(https://www.investopedia.com/terms/h/hedge.asp https://www.investopedia.com/terms/h/hedge.asp) but describing something
by yellowstuff 8y ago
You seem to be using the term "hedging"(https://www.investopedia.com/terms/h/hedge.asp https://www.investopedia.com/terms/h/hedge.asp) but describing something more like "diversification (https://www.investopedia.com/terms/d/diversification.asp https://www.investopedia.com/terms/d/diversification.asp).
From the article it looks like Titan buys 20 stocks, and every Titan investor gets the same stocks in the same proportions, in an amount determined by how much they invested. The "hedging" part is that Titan also buys a product that makes money when the stock market goes down, and gives different amounts of that to each investor based on their risk tolerance. While it is possible to buy downside protection in small amounts, I assume that Titan essentially buys it wholesale and splits it up among its investors, rather than going to the market and buying small amounts with a separate transaction for each investor.