How does Titan manage its investors' portfolios?
At Titan, we actively manage our clients' capital in our own proprietary, actively-managed investment strategies. Our aim is to outperform our benchmarks for each strategy over the long term, net of all fees.
What is Titan's "Flagship" strategy?
Our first strategy, Flagship, is our large cap U.S. growth strategy, aimed at identifying high-quality companies that can compound capital in excess of the S&P 500 index.
First, our Research team uses our proprietary software to analyze the highest conviction holdings of leading, long-term focused hedge funds each quarter. We construct a 20-30 stock universe of "best ideas" based on the top holdings of these like-minded fund managers.
Next, our Research team conducts bottoms-up, fundamental analysis on these 20-30 companies to identify the top 20 high-quality compounders we believe can generate above-market returns for investors. We look for companies with durable competitive advantages, high returns on invested capital, strong management teams, and attractive valuations vs. our estimates of their long-term intrinsic value.
Finally, we actively manage this 20-stock Flagship portfolio every day and change positions in stocks when our analysis suggests better risk/reward prospects elsewhere. We are long-term investors and aim for low turnover and tax efficient portfolio management, so typically only a few stocks change each quarter.
We then pair this portfolio with a customized "hedge" to protect each of our investors based on his/her personal risk tolerance.
How does Titan Flagship analyze the holdings of hedge funds?
Investment funds with over $100 million in assets under management are required by law to report their "long" equity holdings (i.e. the stocks they own) to the SEC each quarter. They report this data in what are called 13F filings, and these filings are public. However, the data in these filings is extremely unstructured and difficult for most humans to synthesize into a sensible portfolio strategy.
This is where Titan's software comes in to build our Flagship investable universe, before our Research team conducts their own bottoms-up analysis on each company in that universe. We view the highest conviction holdings of like-minded fundamental hedge funds as a fruitful hunting ground for great investments, but we always do our own homework on every portfolio company before investing in it for our clients.