Hedgeable was the robo-advisor that refused to be boring — active management, bitcoin, private equity, downside protection, even a rewards club with Lamborghini weekends — and in August 2018 it became the graveyard’s most instructive entry, because it died at $80 million AUM while insisting, accurately, that it wasn’t broke.
What Hedgeable was
Founded in 2009 by twin brothers Michael and Matthew Kane (ex-Bridgewater), launched 2010, Hedgeable was arguably the first active robo: instead of the passive index portfolios of Betterment and Wealthfront, it managed accounts dynamically, used alternatives (metals, currencies, bitcoin) and pitched hedge-fund-style downside protection to millennials, at fees of 0.30–0.75%.
What the record shows
Its final Form ADV listed nearly $80 million in assets, about 1,700 clients, average account ~$47,000 — bigger and wealthier than most startup robos ever got. Yet in July 2018 the firm announced it would withdraw its SEC registration and shut the management platform by August 9, stating explicitly it was “not shutting down, selling, merging, filing for bankruptcy or insolvent.” The founders redirected to their blockchain infrastructure startup, Hydrogen. Clients transitioned via — yes — custodian Folio Investments, with free account access through year-end.
The lesson: opportunity cost kills too
Most graveyard entries die of arithmetic (the 0.25% problem). Hedgeable died of comparison: $80M AUM at its fees grossed a few hundred thousand a year, while only two startup robos (Betterment, Wealthfront) had crossed $1B. Solvent isn’t the bar — worth continuing is. For platform users, the takeaway sharpens our standard advice: a platform can be registered, legitimate, adequately funded, and still decide next year that you’re not worth the trouble. Registration verifies accountability (what it means); it never promises longevity.
Sources: the firm’s public statements, its final Form ADV as reported by trade press (WealthManagement.com, Financial Planning), Wikipedia’s sourced history. Checked July 2026.