Wow, I have been away from this thread for much too long, I see that a lot of interesting discussions, and sometimes even some acerbic one, are evolving. Yes, I am Sefaradi, tracing my house on the father side to the "Halevy" family in Toledo spain all the way to around 1000... Instead of converting, the family went to Amsterdam late in the 15th century, and then from Amsterdam to Koln Germany around 1650, the name Heidt (from Which Hed was derived in the 50') started quite late (1812, influenced by the temporary emancipation of Jews by Napoleon). My Grandfather's Ketuba (a document associated with marriage) still bear his "Halevy" family name, with some pride I should say (namely the German name is in parenthesis, not the Hebrew name).
Zeev