HID Fund — Four Key Directions

Overview
HID Fund is an institutional investment vehicle structured to access asymmetric return potential while maintaining disciplined risk governance. The portfolio is organized around four key directions: Startups (Venture), Artificial Intelligence and Automation, Dual-Use and Defense Technologies, and Public and Digital Markets (Equities, Digital Assets, Exchange-Traded Funds). Allocation is governed by limits at the asset-class and single-position levels, rule-based entry and exit criteria, and periodic rebalancing.

1) Startups (Venture)

Objective. Capture transformational value creation in early and growth stages where technology, product-market fit, and market structure enable outsized outcomes.
Scope. Enterprise software, applied AI, industrial technologies, security and resilience, critical infrastructure, and enabling platforms.
Selection framework.

• Demonstrable technological differentiation and defensible intellectual property

• Scalable unit economics and credible path to gross-margin expansion

• Quality of founding team, governance readiness, and board composition

• Round structure and terms, lead-investor quality, co-investment alignment

• Market structure: customer concentration, procurement cycles, switching costs
  Risk controls.

• Position sizing by stage and liquidity profile

• Milestone-based follow-on logic and downside scenario planning

• Portfolio-level limits by sector, stage, and geography

2) Artificial Intelligence and Automation

Objective. Systematic exposure to infrastructure and applied layers where adoption curves and operating leverage are most durable.
Scope. Model and data infrastructure, inference and deployment stacks, MLOps and safety tooling, vertical automation (industrial, logistics, healthcare, finance).
Selection framework.

• Mission-critical use cases tied to measurable productivity gains

• Unit economics resilient to model-cost volatility and vendor dependency

• Data advantages, regulatory posture, and security architecture

• Enterprise adoption evidence: contracts, retention, integration depth
  Risk controls.

• Concentration limits across model, data, and application layers

• Stress tests for regulatory shifts, input-cost spikes, and supply constraints

• Periodic reassessment of moat durability and substitution risk

3) Dual-Use and Defense Technologies

Objective. Allocate to technologies with validated demand across civilian and defense markets, supported by policy, procurement, and security priorities.
Scope. Sensing and ISR, autonomous systems, secure communications, advanced materials, energy resilience, manufacturing and supply-chain technologies.
Selection framework.

• Clear end-user demand signals and pathway to program-of-record adoption

• Compliance and export controls, certification timelines, supplier resilience

• Industrial base readiness: manufacturability, testing, and lifecycle support

• Revenue visibility via pilots, SBIR/BAA awards, or framework agreements
  Risk controls.

• Exposure caps by customer type and contract maturity

• Scenario analysis for policy, budget, and regulatory changes

• Counterparty and vendor-risk monitoring

4) Public and Digital Markets (Equities, Digital Assets, ETFs)

Objective. Liquid, rules-based exposure to leading public-market instruments and digital assets within defined risk budgets.
Scope. Large-capitalization equities and ETFs with robust market infrastructure; leading digital-asset networks with institutional custody, market depth, and transparent on-chain metrics.
Selection framework.

• Liquidity, free float, and index inclusion for equities and ETFs

• For digital assets: network activity, security assumptions, validator economics, and on-chain transparency

• Valuation discipline relative to growth, cash-flow durability, and market structure
  Risk controls.

• Allocation bands per instrument class; single-asset and correlation limits

• Rules for entries/exits and periodic rebalancing

• Drawdown controls and pre-defined review triggers

Portfolio Construction and Governance

Architecture. Fixed-term tranches with defined duration and payout parameters, enabling clear cash-flow planning and exposure management.
Allocation discipline.

• Top-down limits by asset class, sector, and theme

• Bottom-up position sizing by liquidity, stage, and risk factor

• Ongoing factor and correlation monitoring to prevent unintended concentrations
  Process controls.

• Documented investment memos; pre-trade checks; post-trade reviews

• Periodic rebalancing; scenario analysis (macro, regulatory, technology)

• Independent oversight of mandate adherence and concentration limits

Risk Management

Framework. Scenario-based risk governance aligned to institutional standards.

• Market risk: volatility, drawdown and correlation budgets; stress testing

• Operational risk: counterparty assessment, custody standards, and process controls

• Regulatory risk: monitoring of policy changes, licensing, and compliance requirements

• Liquidity risk: staging of entries and exits; tranche-level cash buffers
  Monitoring and reporting. Regular performance attribution, risk factor decomposition, and variance explanations versus mandate.

Tranche Mechanics

Design. Each tranche specifies duration, parameters for payouts, eligible instruments, and risk limits.
Objectives. Match investor horizons to portfolio exposures; sequence capital deployment; enforce discipline on entries, exits, and rebalancing.
Evaluation. Tranche-level performance tracked against defined objectives with transparent methodology.

Summary

The four key directions—Startups (Venture), Artificial Intelligence and Automation, Dual-Use and Defense Technologies, and Public and Digital Markets (Equities, Digital Assets, Exchange-Traded Funds)—provide diversified access to asymmetric outcomes. The approach relies on institutional governance: fixed-term tranches, explicit allocation limits, rules-based execution, and scenario-driven risk management.