We’ve trimmed existing holdings for clients across both our Opportunities and Offshore strategies.
We believe these moves may offer clients two key advantages:
- Protection during a volatile market environment; and
- Capital we may be able to deploy into stocks that offer superior risk/reward.
Cutting back energy
For clients in our Opportunities strategy, we’ve trimmed our holdings in uranium-related names Denison Mines (DNN) and NexGen Energy (NXE).
We believe demand for uranium amid global interest in nuclear power as a source of renewable energy may be in its early days. In other words, the core tenets of our uranium thesis
However, given the strong performance seen this year from both DNN and NXE, these stocks had grown to be the two largest positions within Opportunities.
As a result, we believe it is prudent to reduce the portfolio’s exposure to this theme as we believe we may be able to deploy this capital into names with more attractive risk/reward setups.
A broad slice of the globe
To raise cash for clients in Titan’s Offshore strategy, we’ve exited positions in two names — Adyen (ADYEY) and Adidas (ADDYY).
We’ve also reduced positions in holdings exposed to China — including Alibaba (BABA), JD.com (JD), and Tencent (TCEHY) — uranium names Cameco (CCJ) and URNM, and trimmed our holdings in PagSeguro (PAGS).
We recently initiated and added to positions in TSM and SE, respectively, during a portfolio update late last month
, and have not changed our views.