ICYMI: Top client questions from Ask Titan Anything this week

Friday, Jan 6th 2023

Commentary

Happy Saturday! Here are the top questions from Ask Titan Anything this week. As always, let us know if you have any questions.

Q: How is the Ark Venture Fund different from the ARKK ETF?

The ARK Venture fund, launched as a first-time fund on Titan in September, is distinct from the other existing ETFs managed by ARK in a number of meaningful ways. Firstly, the ARK Venture Fund will invest primarily in early to late stage private companies, with only ~20% of the portfolio in publicly traded companies. An ETF, on the other hand, is limited to public securities. As a result, the funds are also structured differently. As opposed to an ETF which offers daily liquidity and is listed on an exchange, the ARK Venture Fund is structured as a closed-end interval fund and offers clients only partial liquidity through quarterly redemptions. The potential upside of this feature is called the “illiquidity premium,” i.e. the extra compensation investors may receive for having their money less accessible. Similar to the ARKK ETF, the ARK Venture Fund will also be focused on the theme of disruptive innovation. The team believes bringing this focus to the private markets is a natural evolution and opportunity for retail investors to take part in the value creation and potential investment returns within private markets.

Q: I read through Apollo's real estate update - super interesting. Is now a good time to be adding more capital?

The answer to your question really comes down to time horizon. To the extent that time horizon remains long, we believe that alternative asset classes like real estate are a great diversifying piece to your portfolio. The active component of the Apollo offering allows the team to be incredibly nimble and allocate capital efficiently. The fund is a bit more insulated from the headlines you might be seeing in the news when it comes to residential real estate trends and the Apollo team believes that their focus on multifamily and industrial investments in key geographies will prove beneficial. It truly does come down to time horizon though - if you're looking to allocate capital over the next 5+ years, the Apollo RE offering is a historically strong inflation hedge that has the potential to provide stability amidst severe public market fragility.

Q: Are you considering adding McDonalds to Flagship? It seems like a nice recession hedge to me.

Shares of McDonald's (MCD) crushed the market in 2022. The stock is barely down for the year and while there are a number of factors contributing to the stock's solid performance, one helpful factor is the company's dividend in combination with a very healthy business. Its cash payout, which has helped shareholders achieve nearly a 5% total return after adding in the dividends paid, offers investors some reassurance during a tough market. The business itself is very healthy too - first-quarter comparable-store sales increased 10% year-over-year across all segments, with U.S. comps increasing more than 6% year-over-year. The company's operating-income momentum, analysts' forecast for meaningful EPS growth in the years to come, the impressive dividend history, and a decent yield combine to make the fast-food company a potentially great option in an uncertain environment.


Ark-ventures.com | Prospectus  | Apollodiversifiedrealestatefund.apollo.com | Prospectus

Ask Titan Anything is intended to be informational in nature and does not take into account the specific objectives, financial situation, or particular needs of any specific person. Nothing in this content should be construed as investment advice, or a recommendation to buy or sell securities. Titan Global Capital Management USA LLC ("Titan") is an SEC registered investment adviser. Titan’s affiliate, Titan Global Technologies LLC (“TGT”), is a registered broker-dealer and member of FINRA/SIPC. Both Titan and TGT are subsidiaries of Titan Global Capital Management, Inc. Certain investments are not suitable for all investors. All investments involve risk, and the past performance of a security or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not ensure a profit or protect against loss. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income.

Various Registered Investment Company (“RIC”) products offered by Third-Party Fund families and investment companies are made available on the platform. The RIC products 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. Monthly distributions are not guaranteed and are subject to availability at the discretion of the Third-Party Fund. Quarterly liquidity is not guaranteed. Before investing in a Third-Party Fund, you should consult the specific supplemental information available for each Fund for a full description of the objectives, risks, fees, and expenses. Please visit the Third-Party Fund’s webpage for important additional disclosures.


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