Overview
The Company
Arthedge Capital Management, LLC (“we,” “us” or “Arthedge”) is an investment adviser
registered with the SEC1 and serves as general partner to Arthedge Capital Partners, LP (the
“Fund”). Arthedge previously filed as an exempt reporting adviser in May 2017 until Arthedge
was required to register as an investment adviser on September 25, 2020. We are headquartered in
Jericho, New York.
This brochure contains disclosures about the Fund, which are provided for regulatory
disclosure purposes only. None of the disclosures in this brochure should be considered as an offer
to purchase a security.
Advisory Services
Our Services and Investment Philosophy
Arthedge provides investment advisory services to the Fund. While we have the flexibility
to invest the Fund’s assets in a wide range of securities, we primarily invest Fund assets in global
equity securities, including emerging market equities, that we believe are temporarily mispriced
by the market. We focus our portfolio on the beneficiaries of long-term trends such as the ongoing
disruption caused by software across the economy. Additionally, we may keep the Fund assets in
cash or money market instruments when we expect better opportunities to arise in the future. We
generally avoid the use of leverage.
The investment objective of the Fund is long-term appreciation of assets primarily through
the careful selection and maintenance of a concentrated portfolio of global securities, including
options on equity securities, exchange traded funds and money market funds. The decision to
include a particular equity into the Fund’s portfolio is generally driven by our own proprietary
analysis of fundamental conditions affecting the equity as well
as judgment regarding the
attractiveness of such equity's current market valuation. The Fund has an inherent long bias and
expects to remain fully invested most of the time. The Fund may, from time to time, purchase or
sell put or call index options, to hedge against market volatility. Therefore, we expect a relatively
high degree of volatility reflecting general stock market volatility amplified by our concentrated
portfolio. We believe that such volatility can sometimes present opportunities to acquire or dispose
equities at attractive prices from the point of view of long-term capital appreciation and that the
risk of long-term capital loss usually lies in incorrect evaluation of or unexpected deterioration of
the fundamental factors underlying portfolio assets. More details about our firm’s investment
strategies and the risks involved can be found under Item 8 of this brochure.
1 Registration as an investment adviser does not imply a certain level of skill or training.
Investment Restrictions
Our advice is tailored to meet the needs of the Fund. Arthedge does not tailor its advisory
services based on the individual needs of the Fund’s investors. The Fund may enter into side
letters and other agreements and arrangements with certain investors in the Funds, which may
provide terms and conditions that are more advantageous than those set forth in the Fund’s offering
materials. Such terms and conditions may include different transparency rights, reporting rights,
different withdrawal/redemption rights and/or different fee terms.
Assets Under Management
As of December 31st, 2023, Arthedge had $155,329,000 in assets under management.
Client assets managed by us are managed on a discretionary basis.