HESTIA

ADVANTAGES AND BENEFITS WHEN INVESTING WITH HESTIA SERVICE

Hestia (HSA) is another investment service which follows the Berkshire Hathaway business model approach allowing investors directly become shareholders and own the company. This investment form takes advantage of long term capital and brings premium benefits as followings:

  • Superior profit compared to existing services of Passion Investment
  • High level of liquidity and flexibility helps investors easily divest (partly) their portfolios on the stock market.

 

COMPARISION BETWEEN HESTIA AND PASSION INVESTMENT

Hestia (HSA)

Passion Investment (PI)

Investor

Shareholders from HSA Clients from PI

Characteristics

Long-term return goal Short and medium term goal (from more than a year)

Capital

Long-term run Short-term run

Investment strategy

HSA has more opportunities for long term investment but result does not prolong with investment option under 1 year. Besides listed companies, HSA with advantage of long term capital can practice M&A with potential businesses Only select investment opportunities within a year of contract duration.

In order to ensure the liquidity, PI only chooses and invests in companies listed on the market.

Divestment/Exit

High liquidity, shareholders can easily manage all the trading activities on stock market Clients-investors need to contact PI to terminate contract

Service fee

The HSA Board of Management will receive a 15% return on investment (not exceeding 5% of the annual amount of shares) in the form of Employee Stock Ownership Plan (ESOP)

 

 

The management fee only applies when the trading account’s actual return is greater than the Hurdle rate of 6% per annum. The service fee differs based on two main following schemes:

-Guaranteed minimum profit:  50% of the exceeding profit will be distributed to PI as management fee when the rate of return is higher than 6%.

-Profit sharing: 20% of the exceeding profit will be distributed to PI as management fee when the rate of return is greater than 6%.

Investment Efficiency

Short term: Not clear

Long Term: Since HSA have more potential investment options, average annual performance may be higher than PI

Short term: May be high or low depending on each period.

Long term: Since PI focuses on listed firms with limited choices; hence the average efficiency on the following years may be lower than the HSA.