The Highlights
2025 turned out to be a strong year for many investors who stayed disciplined, patient, and focused on the long term.
Despite persistent concerns around valuations, geopolitics, and monetary policy, global risk assets delivered solid absolute returns, driven by resilient economic growth, accelerating AI-led capital investment, and a gradual normalization of inflation and interest rates.
At the same time, the year reinforced an important investment lesson: familiar metrics can lose their usefulness when the underlying economic regime shifts.
In 2025, margins often proved to be a misleading signal of quality. As artificial intelligence moved from research into large-scale deployment, the market began to reprice the physical and operational backbone of intelligence—memory, networking, power, cooling, and energy. In many cases, companies that reinvested aggressively and accepted near-term margin pressure strengthened their long-term competitive position, while those focused on protecting short-term profitability fell behind.
Looking ahead to 2026, we believe this dynamic will persist.
The next phase of the AI cycle is less about discovery and more about deployment; less about models and more about systems. This favors companies that can engineer, build, and operate critical infrastructure at scale. We expect a more dispersed market environment, where leadership rotates and returns increasingly reward real capability rather than financial optics.
This letter is not a victory lap. Markets rarely allow that luxury.
Instead, it is an opportunity to reflect on what mattered, clarify the lens we are using to evaluate opportunity, and outline how we are positioning client capital for the years ahead. In our view, the path forward continues to favor long-term owners of productive assets who remain patient, research-driven, and willing to look beyond conventional signals.
Questions? Talk to a Titan advisor
Our 2025 annual letter is chock full of our market outlook, thematic bets we’re making in 2026 to capitalize on it, and strategies we offer to participate in different risk/reward prospects.
Want our personalized recommendation for your portfolio? Interested in how alternatives like venture capital, private credit, real estate or crypto might fit into your goals? Schedule some time with a Titan advisor here.
Also, we’ve recently launched the ability for clients to consolidate assets on Titan without triggering tax implications. Random accounts from fintech ads of old? New year house keeping? High fee advisory accounts that aren’t working anymore? We can help tax efficiently clean up your holistic portfolio to lock in tax losses and start the New Year on the right foot. foot.
