HEDGEMORE
C A P I T A L
VALUE IN PROCESS
UNDERWRITING ™
Who We Are
Hedgemore Capital is a financial producer serving both risk hedgers and capital investors with integrated, strategic solutions.
Our business model bridges insurance and hedge fund strategies—generating alpha by transforming risk.
Rethinking Underwriting
Conventional underwriting centers on pricing strategy—optimizing premiums to cover the insured loss.
In contrast, our value-in-process underwriting focuses on loss reduction—neutralizing uncertainty to pursue zeroing loss.
Like a moving tangent line, it discovers the real path, removing the cost of uncertainty.
Mathematical Framework
Our value-in-process underwriting is built from first principles—combining market logic with mathematical rigor.
1. Insurance Combined Ratio – Defines the key factors of underwriting profitability.
2. Put / Call Parity – Defines fundamental relationship of value and risk profile across cash, linear and non-linear instruments.
3. Option Greeks (Delta, Gamma, Vega, Theta) – Sensitivity measures that guide exposure management and hedging.
4. Law of Large Numbers – A numerical framework that transforms randomness into stability and accuracy at scale.
Business Model
Our proprietary value-in-process underwriting focus on:
1. Revenue Process
We underwrite exchange-traded options to generate revenue or float in a huge and liquid market ($1.0 Trillion total U.S. exchange traded premiums in 2024).
2. Profit Process
We apply numerical processes to dynamically transform the risk to achieve zeroing loss. The float capital is strategically invested to create synergy with underwriting.
3. Sustained Profitability
We optimize the profit engine to deliver scalable, repeatable, and uncorrelated profitability.
4. Risk and Capital Management
We favor capital turnover over leverage. We emphasize risk diversification and capital efficiency.
5. Streamlined Execution
We execute our business through AI-augmented trading.
Our Financial Projection
Financial projection for $100 million asset under management with leverage ratio of 1.
AUM : $100M
Premium Income: $50M
Insured Loss: -$25M
Loss Ratio: 25/50=50%
Expense: -$5M
Expense Ratio: 5/50=10%
Combined Ratio: 0.1+0.5=60%
Underwriting Profit ($): $50-$25-$5=$20M
Underwriting Profit (%): 20/50=40%
Investment Rate: 4%
Investment Return: $4M
Return on AUM($): $20M+$4M=$24M
Return on AUM(%): 24/100=24%
Business Risk
Our key business risks include:
1) Leverage – Amplifies both gains and losses, heightening exposure to unexpected shocks and tail events.
2) Concentration – Exposure to single or correlated risks undermines the principle of diversification.
3) Capital Risk – The threat of loss or sudden withdrawal of operating funds, undermining financial stability and growth.
Our strategy is grounded in convergence principles and deliberately avoids these risks that often lead to divergence and capital destruction.
Strategic Partnership Opportunity
We are offering three distinct paths for partnership:
1. Equity Investment (For PE, VC, SPAC)
Acquire a 10% equity stake in Hedgemore Capital for $10 million, reflecting a $100 million valuation. This investment will accelerate the expansion of our proprietary Value-In-Process Underwriting™ model and scale up revenue and profitability.
2. Institutional Services (For Broker, Lender)
Partner with Hedgemore to providing institutional investors with access to our expertise, technology, and underwriting discipline without requiring equity participation.
3. Fee-Based Services
Platform extensibility enables hedge fund–style offerings, including CTA strategies and risk advisory.
Team
John Gu
John brings 20+ years experience in capital markets with large financial institutions. His expertise spans asset & liability management, mortgage pipeline hedging, credit guarantees, insurance, and credit risk transfer through structured reinsurance deals (ACIS).
Holding a BS in Engineering and an MBA in Finance, John has leveraged his experiences to unleash power through innovation. Series 3, 65.
AIMRT
AIMRT is a machine expert (AI) in market risk transfer and transformation (MRT).
The algorithm reacts to markets and trades to achieve growing revenue and zeroing loss through adaptive convergence.⛳
Talents
We have access to top talents in computer science, financial engineering, financial products, and business development.
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