Performance Update (July 2020)
Titan clients are now up +13-17% YTD after fees (vs. S&P 500 +2% and Wealthfront/Betterment which are down -2% to -5%).
Below is a recap of key drivers of Titan Flagship in July. Stay tuned for the launch of Titan Opportunities (our small cap growth strategy) in the next few weeks.
Our Flagship strategy gained +6% in July, in line with the S&P 500's +6%, despite having our maximum hedges in place (and therefore lower beta / less market exposure).
Titan clients with Aggressive risk profiles are now up +17% YTD (vs. S&P 500 +2%, and advisors like Wealthfront and Betterment down -2% to -5%).
Represents year-to-date return, after fees, through July 2020. See full disclosures here and below.
Since our Inception Date (2/20/2018), Titan Flagship has gained +46% in total return (after fees). This is nearly ~2x the market's return, and nearly ~4x that of other advisors such as Betterment and Wealthfront.
Represents total return, after fees, from Inception Date through July 2020. See full disclosures here and below.
Key Drivers
Here were the key drivers of our July returns:
1) Q2 Results for Big Tech. The big U.S. tech stocks ("FAANG") continued their rally after posting blowout Q2 results despite the pandemic.
2) Winners Kept Winning. Several of our biggest YTD gainers sustained their momentum (e.g., Twilio +27%, Apple +17%).
3) Continued "Melt Up." U.S. equity indices rose mid-single digits on both fundamental improvements and investor FOMO.
Per our April memo, we see a number of risks remaining (e.g., health, economic, political) which do not appear fully appreciated based on equity valuations at the index level. Our full hedges remain in place.
Stay heavily invested in your Flagship portfolio, with perhaps a bit of cash as dry powder to deploy when the "skew" improves. We'll let you know when it does.
See disclosures.
July Movers
Gainers:
Twilio (TWLO) +27%
Apple (AAPL) +17%
Amazon (AMZN) +15%
Detractors:
Schwab (SCHW) -2%
TransDigm (TDG) -2%
Uber (UBER) -3%
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