More uranium. This time, it's physical.
Sep 14, 2021
We're adding additional uranium exposure to Offshore
As we mentioned in our email to Titan clients last week, we continue to believe that robust global demand, an accelerating structural supply deficit, and its highly attractive value proposition make uranium an outstanding investment opportunity worthy of our clients' capital: one which we believe could yield 2-3x returns net of fees over the 3-5 year horizon, with minimal downside risk.
Additionally, we’ve seen one of the primary catalysts to our uranium thesis - the launch of Sprott's Physical Uranium Trust - already having a far greater impact on spot markets than we anticipated. To date, we have invested in what we believe to be the highest-quality uranium miners; however, given our strong conviction, we believe expressing our uranium thesis through exposure to physical uranium provides an equally attractive investment opportunity for our clients.
As a result, we have initiated a new position in North Shore Global Uranium Mining (URNM) in the Offshore portfolio.
How we're funding our investment in URNM
To fund our URNM investment for Titan's Offshore portfolio, we are exiting two of our existing Offshore holdings including Ferrari (RACE) and Nintendo (NTDOY).
Ferrari (RACE): Last week, we trimmed our exposure in Ferrari to fund our investment in Cameco Corporation (CCJ). Today, we sold the remainder of our position given the risk/reward skew we see with this compelling investment in physical uranium. We exited Ferrari after a +5% return since our original purchase in early April 2021.
Nintendo (NTDOY): While we remain bullish on the long-term growth of gaming, Nintendo has been a strong beneficiary of COVID-driven tailwinds over the past several months, and as a result, led to elevated growth expectations for the company. As such, we see increased risks for Nintendo sustaining this strong momentum over the near/medium term against the backdrop of increasing competitive pressures, lingering global semiconductor supply chain shortages, and moderating growth dynamics from continued global re-openings. Further, the company's delayed release of its highly anticipated Zelda Breath of the Wild and Switch Pro until FY2023 removes potential upside support for 2H21 results against these elevated expectations.
While we remain confident that Nintendo will perform well over the medium/long-term, we believe the risk/reward skew is more attractive in URNM from an opportunity cost perspective and decided to exit the NTDOY position at a -14% loss since our investment in early April 2021. This loss may help to offset other gains in clients’ portfolios from a tax perspective at the end of the year.
TLDR: We continue to love uranium, and we're delighted to be further invested in it. If you have any questions about these portfolio management decisions, please reach out to our team.
Cash Management
© Copyright 2024 Titan Global Capital Management USA LLC. All Rights Reserved.
Titan Global Capital Management USA LLC ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept and agree to Titan’s Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities or investment products. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are hypothetical in nature and may not reflect actual future performance. Account holdings and other information provided are for illustrative purposes only and are not to be considered investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.
Please refer to Titan's Program Brochure for important additional information. Certain investments are not suitable for all investors. Before investing, you should consider your investment objectives and any fees charged by Titan. 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, including principal. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members of FINRA/SIPC. For more information, visit our disclosures page. You may check the background of these firms by visiting FINRA's BrokerCheck.
Various Registered Investment Company products (“Third Party Funds”) offered by third party fund families and investment companies are made available on the platform. Some of these Third Party Funds are offered through Titan Global Technologies LLC. Other Third Party Funds are offered to advisory clients by Titan. Before investing in such Third Party Funds you should consult the specific supplemental information available for each product. Please refer to Titan's Program Brochure for important additional information. Certain Third Party Funds that are available on Titan’s platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund.
The cash sweep program is made available in coordination with Apex Clearing Corporation through Titan Global Technologies LLC. Please visit www.titan.com/legal for applicable terms and conditions and important disclosures.
Cryptocurrency advisory services are provided by Titan.
Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.
Contact Titan at support@titan.com. 508 LaGuardia Place NY, NY 10012.