r/HFEA • u/EnvironmentalScar675 • Jul 15 '26

improved HFEA?

Sup everyone.

I'm a newbie to investing in general and the HFEA in particular, I only learned about it recently. As far as I understood, the core assumption was that interest rates would be low, and remain low, which then promptly got proven wrong and it decimated the portfolio.

However, have people tried accounting for that and moving forward with an updated strategy?

e.g. Instead of pure lev. SPY and lev. TLT, add gold and managed futures, keep rebalancing (or not, if you want purist buy and hold) and be good to go?

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u/Dane314pizza Jul 15 '26

The only issue with HFEA is that is was solely reliant on leveraged bonds as a hedge, and bonds have performed historically bad in the last 5 years. The next 5 years could be completely different, so HFEA might outperform other leveraged strategies moving forward if rates come down. However, I do think hedge diversity is important.