• Smart Cash
  • Log in
  • Get Started
ResearchThree Things (11/20)

Three Things (11/20)

Nov 20, 2023

“If I start going off, the OpenAI board should go after me for the full value of my shares." - Sam Altman, Former CEO of OpenAI

Control, Altman, Delete

OpenAI was the talk of the weekend following an announcement that Sam Altman will depart as CEO of the AI giant. Altman's exit followed a review process by the board, which concluded that he was not consistently candid in his communications, hindering its ability to exercise its responsibilities. Following an uproar, the company’s investors (Microsoft, Tiger Global, and Thrive Capital, among others) and company executives are pressing to reinstate Altman as chief executive officer and replace the current board of directors.

The last 72 hours have been an incredible case study on corporate governance and we’re certain there are founders around the globe double checking their own company structure. As key executives are threatening to leave, the board’s decision could be one of the most impressive missteps in modern management. There’s surely more to the story but for the time being, it’s an incredibly perplexing decision that could disrupt the company’s growth plans for years to come.  

Russell rally

The Russell 2000 index – the world’s most closely followed gauge of smaller companies — rose over 5% last week as softer US inflation data bolstered bets that interest rates have topped out. Relative to the S&P 500, the small-cap index is hovering near the cheapest valuations since 2007 as higher rates and, potentially, a slowdown in the economy are key risks that have more profound implications on smaller companies. 

The lagging performance may be troublesome but it also could be viewed as an opportunity: valuations are “beyond cheap” and “if we’re going into a slowing economy, small caps are already predicting a recession. So the valuation gap between small and large caps will begin to close” said Nicholas Galluccio, portfolio manager at Teton Westwood. 

Waning demand

Wall Street firms have quietly been closing sustainable investment funds after investors withdrew more than $14 billion from ESG offerings this year.  Higher interest rates have slammed clean-energy stocks and the third quarter was the first time more sustainable funds liquidated or removed ESG criteria from their investment practices than were added. 

The change is certainly demand and performance driven but it also may be influenced by political pressures. The Securities and Exchange Commission is stepping up oversight of the space, firms like Deutsche Bank have already been penalized for alleged greenwashing, and environmental, social and corporate-governance investing has become a political target as the presidential race heats up.

As of writing, MSFT is a holding in Titan's Flagship strategy.

Cash Management

Smart Cash

Smart Cash FAQs

Cash Options

Get Smart Cash


© Copyright 2023 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. Cryptocurrency trading is provided by Bakkt Crypto Solutions LLC ("Bakkt Crypto"). Bakkt Crypto is not a registered broker-dealer or a member of SIPC or FINRA. Cryptocurrencies are not securities and are not FDIC or SIPC insured. Bakkt Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency execution services are provided by Bakkt Crypto (NMLS ID 1828849) through a software licensing agreement between Bakkt Crypto and Titan. Please ensure that you fully understand the risks involved before trading: bakkt.com/disclosures.

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.