HEDGEMORE
C A P I T A L
VALUE IN PROCESS
UNDERWRITING MRT
Precision in Motion
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, rather than making assumptions about future uncertainty—Foresight deals a winning hand.
Mathematical Framework
Our underwriting model 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 pricing 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. Numerical Convergence via the Law of Large Numbers – A framework that transforms randomness into stability and accuracy at scale.
Business Implementation
Our proprietary value-in-process underwriting focus on:
1. Market Risk Transfer
We underwrite exchange-traded options as market risk transfer instruments to generate revenue.
2. Market Risk Transformation
We apply numerical processes to dynamically transform the risk to achieve zeroing cost.
3. Sustained Profitability
We optimize the profit engine to deliver scalable, repeatable, and uncorrelated profitability.
4. Streamlined Execution
We execute our business through AI-augmented trading.
Market Opportunities
We operate at the intersection of insurance, capital markets, and investment—unlocking multiple scalable income streams:
1. Premium Income
In a $6 trillion per year exchange-traded market (tracked via CME), premium income is limited only by capital capacity and risk appetite.
2. Underwriting Profit
Our value-in-process underwriting is designed to achieve underwriting profit.
3. Investment Income
Float capital is strategically invested to create synergy with underwriting.
4. Fee-Based Services
Platform extensibility enables hedge fund–style offerings, including CTA strategies and risk advisory—generating fee-based income.
5. Capital Management
Strategic risk ceding or insurance strategies enhance capital efficiency and unlock scalable margins.
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 business processes are built for resilience and stability—anchored in convergence principles. But certain forces can cause divergence and destruction.
Leverage – Amplifies both gains and losses, heightening exposure to unexpected shocks and tail events.
Concentration – Exposure to single or correlated risks undermines the principle of diversification.
Capital Risk – The threat of loss or sudden withdrawal of operating funds, undermining financial stability and growth.
Our performance does not rely on leverage. We favor capital turnover over leverage—performance without amplified risk.
Strategic Partnership Opportunity
We are offering two distinct paths for partnership:
1. Equity Investment
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 unlock scale in specialty risk markets.
2. Institutional Services Partnership
Engage with Hedgemore through a fee-based underwriting and risk advisory model — providing institutional investors with access to our expertise, technology, and underwriting discipline without requiring equity participation.
Team
John Gu
John brings over 20 years of experience in investments and capital markets, having worked 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 knowledge to unleash power through innovation. Series 3, 65.
AIMRT
AIMRT is a machine expert in market risk transfer and transformation (MRT).
The algorithm reacts to markets and makes trade recommendations to achieve adaptive convergence.⛳
Talents
We have access to top talents in computer science, financial engineering, financial products, and business development.
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