Titan Invest is a premier investment management firm that offers everyday investors a hedgefund-like experience with investment amounts starting at $100.
At A Glance:
- Minimum investments start at $100
- 1% management fee over investments $10,000, otherwise $5 per month
- 4 Investment Strategies
- Flagship
- Opportunities
- Offshore
- Crypto
- Offers individuals brokerage accounts & IRA(s)
- No performance fees
- No lock-up period
- Unique referral program
- Personalized hedge based on an individual’s risk tolerance.
PROS & CONS
| PROS | CONS |
|---|---|
| Invest with as little as $100 | Unproven long-term track record (Founded in 2018) |
| Personalized hedge | Concentrated portfolios (15 -25) |
| SIPC Insurance Up To $500,00 | Higher fees than a mutual fund or index fund |
| Lower management fee than typical hedge funds | No additional banking tools or services |
Who Should Invest With Titan?
Titan Is A Good Option For…
- Titan is best suited for individuals who want a low-cost actively-managed portfolio with the ability to mitigate losses during market downturns based on your risk tolerance.
Titan Is Not A Good For…
- Day traders
- Investors who want control over their portfolio composition
- Individuals looking for low-cost investment options.
What Is Titan Invest?
Titan is a premier investment management firm built for everyday investors like you and me.
The company adopted a mobile-first investment platform on the premise that Wall Street only catered to the ultra-wealthy, and they’re here to change that.
Titan aims to introduce radical transparency by eliminating the Blackbox – professional investors with little insight into their investment process. They aim to change this by providing detailed analysis and updates to help you become the best investor.
Co-founded by Clayton Gardner, Joe Percoco, and Max Bernardy. All three have legit pedigrees graduating from the University of Pennsylvania and Stanford and experience working at elite hedge funds, consulting, and technology companies.
The company manages over $750 million across 50,000+ clients.
Titan Investment Strategies Explained
With Titan Invest, you can become an investor with just $100. Titan aims to grow your capital faster than the market.
To achieve its goal, they seek to do that through 2 main strategies: its Titan Flagship (Large Cap Growth Strategy) and Titan Opportunities (Small, fast-growing under the radar stocks). Both approaches have the same underlying philosophy, high-quality, long-term growth.
Titan Flagship
Titan Flagship is the firm’s large-cap investment strategy. The Flagship strategy is long-term focused with low turnover, meaning that only a few stocks change each quarter. On the short side, clients have personalized downside protection via a market index hedge.
- Minimum Investment: $100
- Management Fee: 1%
- Lockup Commitment: None
- Objective: Outperform the S&P 500 over a 3 -5 year time horizon. The portfolio is updated as needed when the Portfolio Manager identifies a better risk/reward opportunity than the current holdings.
- Portfolio Composition: The strategy invests in 15-25 large-cap stocks.
- Returns: Since inception & net of fees as of Feb 2022, Titan Flagship returned an annualized return of 14.0% vs. 14.6% in the S&P 500.
- Personalized Hedge: A personalized hedge using an inverse S&P 500 ETF is dynamically applied depending on the individual’s risk tolerance.
Titan Opportunities
Titan Opportunities focuses on small/mid-cap companies in the US. It seeks to invest in equities of market-leading U.S.-based companies under $10B in market capitalization.
- Minimum Investment: $10,000
- Management Fee: 1%
- Lockup Commitmment: None
- Objective: Outperform the Russell 2000 over a 3 -5 year time horizon.
- Portfolio Composition: 15-25 long positions compromise the portfolio, plus a personalized hedge based on each client’s risk tolerance. The hedge aims to reduce market exposure during downturns.
- Returns: Since inception and net of fees as of February 2022, the opportunities fund returned 25.0% vs 19.4% compared to the Russell 2000.
- Personalized Hedge: A personalized hedge using an Inverse Russell 2000 ETF is dynamically applied based on the individual’s risk tolerance to protect against market downturns.
Titan Offshore
Titan Offshore is the firm’s international growth strategy. The Titan Offshore portfolio seeks to invest in the world’s best non-us companies, from China to Latin America.
- Minimum Investment: $10,000
- Management Fee: 1%
- Lockup Commitment: None
- Objective: Outperform the MSCI ACWI ex USA Index over a 3-5 year horizon.
- Portfolio Composition: Invest in 15 – 25 stocks with an average market cap of $157 billion.
- Returns: Since Inception and net of fees, returns as of Feb 2022 are -29.9% annualized vs. -3.3% for MSCI ACWI ex USA index.
- Personalized Hedge: A personalized hedge using an Inverse MSCI Emerging Markets ETF is dynamically applied based on the individual’s risk tolerance to protect against market downturns.
Titan Crypto
- Minimum Investment: $100
- Management Fee: 1%
- Lockup Commitment: None
- Objective: Outperform the Bitwise 10 Large Cap Crypto Index over a 3-5 year horizon
- Portfolio Composition: 5 – 10 large cap crypto assets.
- Returns: Since Inception and net of fees, returns as of Feb 2022 are 9.8% vs. -17.4% for the Bitwise Large Cap
- Personalized Hedge: None available
Titan Investment Process
Titan applies a rigorous quantitative and qualitative investment approach to identify investments that meet its criteria.
Let’s take a glance:
1. Long-term “economic moats.” In other words, they look for companies with long-term competitive advantages that allow them to earn above-average returns. Economies of scale(a business is profitable due to its scale, switching costs (think your cable company) are examples of economic moats.
2. Identifying companies that can grow sustainability faster than average. For example, they look for “secular industry tailwinds.” such as shifting from brick-and-mortar retail to eCommerce.
3. Large Returns on Capital. As shareholders, when Titan invests money into a company,y they consider how much money can expect in return.
4. Identifying companies trading at a discount to their long-term intrinsic value. This means they look for companies whose valuations are at a significant discount to their intrinsic value and have little to no permanent risk of capital impairment.
Personalized Hedge Explained
Titan’s personalized hedge can help you mitigate losses in a market downturn.
The hedge increases in value when the specific index it is linked to decreases in value. I like the fact that the hedge is applied dynamically based on the investment teams’ research and an individual’s risk tolerance.
- The hedge is applied dynamically based on when the Titan investment team believes their strategies are undergoing or have a high risk of undergoing an extended downturn.
- The degree of hedge increases during a downturn and decreases when the downturn ceases, as determined by Titan’s investment team.
- The Inverse ETF acts as a hedge by reducing your portfolio’s overall exposure (“beta”) to the market. Beta is the volatility of the portfolio of securities relative to its benchmark.
| Fund Type | Hedge |
|---|---|
| Titan Flagship | Inverse S&P 500 ETF |
| Titan Opportunities | Inverse Russell 2000 ETF |
| Titan Offshore | Inverse MSCI Emerging Markets ETF |
| Risk Tolerance | Market Downturn % of Portfolio Hedged | No Downturn % of Portfolio Hedged |
|---|---|---|
| Aggressive | 5% | 0% |
| Moderate | 10% | 5% |
| Conservative | 20% | 10% |
How To Start Investing With Titan
Step 1) Create an account and transfer as little as $100
It takes roughly 2 minutes to open a Titan Invest Account. You can choose either a taxable account or a retirement account. Then link a bank account or send a wire transfer. This money goes into your own separately managed account.
Step 2) Titan goes to work and starts investing.
Titan starts investing on your behalf in one of their Investment strategies (Flagship, Opportunities, Offshore, and Crypto).
Step 3) Titan provides investors with real-time updates to help you better understand what’s moving your portfolio.
Titan Referral Program
Titan offers a unique referral program. When you refer someone, and they invest in their first fund account (retirement or non-retirement) with a minimum deposit of $100, provided the referred account remains open and funded, and your account is open and funded too.
“For each Qualified New Client, Titan Invest reserves the right to reduce our Advisory Fee by 25 basis points (or our Wrap Program Fee by 25%) for both you and the Qualified New Client for 1) your Titan accounts and 2) the accounts of the Qualified New Client.“
You can reduce your Advisory Fee on your accounts by referring Qualifying New Clients until you reach an Advisory Fee of 0% on your accounts or pay $0 in Wrap Program fees.
Furthermore, you can refer new clients after you reach a 0% advisory fee. Still, it will not impact your fees any further – only for those who were referred.
Alternatives To Titan Invest
Titan’s closest competitor is a new(ish) crypto and stock platform called Domain Money
The most significant difference between the platforms is that Domain Money offers self-directed investing and professional investment strategies. Titan only gives investors access to an investment platform that contains four equity and one crypto fund with no self-directed investment options. However, Titan allows customers to invest via an IRA, a feature not available at Domain Money.
Also, in a market downturn, Titan provides a dynamic market hedge for its equity strategies to mitigate downside risk, a feature not available at Domain Money.
| Feature | Domain Money | Titan Invest |
|---|---|---|
| Actively Managed Portfolios | ||
| Number of Crypto Portfolios | 4 | 1 |
| Self-directed Investing | ||
| Retirement Account Investing | ||
| Fees | 1% | 1% |
