We're thrilled to announce the launch of Titan Offshore, our international investment strategy complementing our Flagship and Opportunities portfolios.
Offshore takes the same playbook we’ve been executing with our U.S. strategies, and applies it to emerging and developed markets.
The correction in international markets over the past few months has presented a rare opportunity to buy wonderful businesses overseas at attractive prices. Hall-of-fame businesses from China to Latin America are now trading at ~20-40% discounts versus just a month ago. These are global gems we've had on our watchlist for years, and a compelling entry point has finally arrived.
Additionally, Offshore will add healthy diversification to our U.S. growth equity exposure from Flagship and Opportunities.
See the above links for a quick video and full investment deck. Be sure to update your Titan app to check it out.
Offshore is about investing in emerging and established "compounders" across diversified global markets that have the potential to generate outstanding returns relative to the non-U.S. index benchmark.
"Can you give me a quick preview of the sorts of companies in Offshore?"
If you know China, you know WeChat. This Tencent-owned "super-app" is used by virtually everyone in China for chat/video, payments, shopping, hailing cabs, paying bills, and much more. We see it as a toll road on China's growth.
Price Target: $125 by 2023 (+15% annualized)
France's leading luxury goods group includes 75 prestigious brands which took decades to build (e.g., Louis Vuitton, Sephora, Bvlgari), creating high barriers to entry and pricing power.
Price Target: $200 by 2023 (+15% annualized)
Known as the "Square of Brazil," this LatAm market leader in digital micro-merchant payments is profitable and poised for accelerating growth post COVID-19 as local entrepreneurs recover.
Price Target: $96 by 2023 (+28% annualized)
Many overseas markets are far earlier in their growth "S-curves" than the U.S. on key secular trends. Some of our favorite Offshore themes include gaming, e-commerce, and digital payments. We have identified emerging markets like China, Brazil, and Russia for which these themes are seeing accelerating adoption off of a very low base of penetration.
Global Opportunity Set
Did you know that 40%+ of the global market cap is held in foreign-domiciled stocks? Focusing your investments in only U.S. companies is ignoring a large swatch of international opportunities. To stay ahead of the curve on secular trends like globalization and cyclical trends like "reflation" in the U.S., we believe you should have overseas exposure.
We are big proponents of concentration ("focus on only your best investment ideas"), but smart diversification can reduce risk without sacrificing returns. We expect Offshore's exposure to emerging and developed markets to reduce your portfolio volatility over time.
We have revised our allocation recommendations to incorporate the new Offshore strategy. You can find these recommendations in the app by clicking the + button in the navigation bar > entering an investment amount > clicking Next: Investment Strategy.
Your personalized recommended mix depends on your risk profile (including investment horizon). To achieve this recommended mix, we advise that you add new capital to your account. Reallocating/liquidating existing invested funds to invest in Offshore would potentially trigger tax consequences on any gains realized in a taxable account which we want you to avoid.
Reflecting these changes and our annual update, we wanted to provide you with updated versions of Titan’s Form ADV Part 2A, Account Management Agreement, Form CRS, and more, which are available on our website here. Please reach out with any questions.
We are so thrilled to be launching Offshore. We believe it will bring attractive global exposure and smart diversification to your Titan portfolio, aiming to boost your risk-adjusted returns over the long term.
Update your app in the Apple or Google Play store now to check it out.
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Refer to Titan's Program Brochure for more information. Certain investments are not suitable for all investors. Before investing, consider your investment objectives and Titan’s fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. The introducing Broker Dealer is Titan Global Technologies LLC, a registered broker-dealer and member FINRA/SIPC. Brokerage services are provided to Titan Clients by Apex Clearing, an SEC registered broker-dealer and member FINRA/SIPC. For more information, see our disclosures. Contact: 508 LaGuardia Place NY, NY 10012. Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice. Check the background of these firms on FINRA's BrokerCheck.
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