We're thrilled to announce the launch of Titan Opportunities, our second investing strategy to complement the award-winning Titan Flagship.
Opportunities takes the same playbook we’ve been executing so well on Flagship, and applies that to under-the-radar companies before the crowd catches on.
Attached is a quick video and a full investment deck.
Quick 101 on Opportunities
Portfolio Construction: ~20 U.S.-listed stocks, typically equal-weighted
Size: Small companies (typically <$10 billion market cap)
Time Horizon: 3-5 year target holding period (like Titan Flagship)
Philosophy: Extremely picky. Businesses must still meet our rigorous investment checklist (long growth runways, durable competitive advantages, excellent unit economics, attractive valuations).
Trading: Opportunistic. We'll be conducting our own in-house research to build and manage this portfolio. We'll also capitalize on market dislocations to a larger degree. Hence, it's much more discretionary than Titan Flagship.
Minimum Investment: This strategy is much more time intensive for us, so we're asking folks to have a minimum of $10,000 total deposits in Titan (summed across accounts) for access. You can add capital and/or roll over a retirement account to reach this amount.
Fee: Still the same, simple 1% annual AUM fee and 0% performance fees (typically this sort of strategy could cost 2% AUM + 20% performance).
Referrals: All existing referral credits will apply to Titan Opportunities for clients who fund the strategy by the end of September.
Why Invest in Opportunities?
1 - Higher Potential Returns
Small cap growth tends to have higher slugging percentages (skew) than large cap growth, meaning the upside from winners is greater. These companies are also largely under-the-radar, meaning you get to buy shares before the crowd catches on and bids up the stock price.
2 - The Perfect Complement
Because Flagship is strictly focused on large companies, this Opportunities strategy is highly complementary to your current portfolio. Having a concentrated basket of high-quality small/mid cap companies is an essential part of a well balanced portfolio, and we're confident that we've identified the next crop of rising stars.
3 - Historic Discount
Small cap growth stocks are currently trading at a historic discount to large cap growth. A rare opportunity. Despite smaller stocks historically presenting the best risk-adjusted returns, many investors are underweight small caps as large caps have dominated the last 10+ year bull market.
New fee structure for accounts under $10K
We are working extremely hard to step up Titan for you in many ways. In order for us to continue to expand our best-in-class services without having exorbitantly high investment minimums (like others), we need to better align our fee structure. We will be updating it as follows (effective 10/1/2020):
For clients with net deposits of less than $10,000, there will now be a straightforward monthly account fee of $5 for all Titan services (no AUM fee). There will be no change for clients with net deposits of $10,000 or greater (1% AUM fee).
This fixed $5 fee will be debited directly from the client's linked bank account. See our Fees Overview for more details on the fee billing process.
The reason we are making this change is that the cost to maintain accounts with low dollar balances is already significantly higher than the fees we earn on them. This fee change supports us maintaining your own personal vault, executing your direct ownership of fractional shares (vs. having an "ETF" like structure), supporting instant deposits (which many others lack), access to our research team's content, and so on.
The net deposit threshold will be the aggregate total of your deposits for all of your Titan accounts (i.e. Individual, Traditional IRA, Roth IRA).
Referral credits, both existing and future, will apply under the new fee structure, too. Each referral credit will be 25% off your fees.
If you have any questions whatsoever, please let us know. Our goal is to ensure Titan remains a sustainable, profitable place for your capital for decades.
We've updated our legal agreements to reflect Titan Opportunities and our new fee structure effective 10/1/2020 (we'll be sending a reminder again in advance of this change). This includes our Form CRS, Form ADV Pt 2, Advisory Agreement, and Fee Schedule. For all documents, head to our Disclosures.
How to Invest in Opportunities
In the mobile app, click the + icon in the navigation bar. Then choose your account > enter your transfer amount > choose your desired mix of Opportunities and Flagship.