Titan Flagship Excelling

Hope you had a great long weekend. Flagship continues to excel year to date, +14.15%¹ YTD vs. S&P 500 +10.29%, while over the last 12 months, Flagship is +10.29%¹ vs. the S&P 500 +5.45%. This is primarily driven by three factors:

1) We placed big bets on tech “Generals” that are paying off: It’s a tale of two markets. The chart below says it all, and we have meaningful exposure to 5/7 names listed. Our thesis was that stormy market conditions would fuel the Generals’ ability to take share. There may be turbulence in the broader economy, but this is a stock picker’s market.

2) We’ve had good stock picking elsewhere. As the AI race heats up, Advanced Micro Devices (AMD) has nearly doubled (+98%) YTD as investors see AMD as a key enabler of AI proliferation. Uber (UBER) is up nearly 50% YTD after a successful Uber One rollout, combined with easing driver supply issues. Lastly, our high-quality industrial company Transdigm (TDG) is +26% YTD and near all-time highs, as our thesis that commercial aerospace would continue to recover post-covid plays out nicely. Laggards YTD include Charles Schwab (SCHW), which has been dragged down in the banking crisis, and Thermo Fisher (TMO), as healthcare has underperformed the broader market.

3) We’re employing thoughtful risk management. Most clients don’t know that we’re doing the above while running low net exposure. Of every $100 invested in Flagship, we’re holding ~$18 in opportunistic cash (earning 3.2% APY) to take advantage of downturns. When the market takes a dive, we take the opportunity to buy low. We believe several more opportunities will come.

After a challenging 2021, we still have some work to do on our all-time returns compared to the benchmark, but we’re in a great rhythm right now and feel great about our positioning moving forward.

We’ll be out with our full monthly recap in the coming days to discuss the other strategies on Titan.

–Your Flagship Investment Team

Titan Global Capital Management USA LLC ("Titan") is an SEC registered investment adviser. Please refer to Titan's Program Brochure for important additional information. 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. 

All investments involve risk, and the past performance of a security, financial product, or Titan strategy does not guarantee future results or returns. Diversification is a portfolio allocation strategy that seeks to minimize inherent risks by holding assets that are not entirely correlated. 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. There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing. The price of a given security may increase or decrease based on market conditions and clients may lose money, including their original investment and principal. The information provided does not take into account the specific objectives, financial situation, or particular needs of any specific person. Please visit www.titan.com/legal for important disclosures.

Results for Titan Flagship as compared to the performance of the Standard & Poor’s 500 Index (the “S&P 500”) is for informational purposes only. The S&P 500 is calculated and distributed exclusively by S&P Dow Jones Indices, and not by Titan, and thus Titan cannot guarantee the accuracy or completeness of the data. Account holdings are for illustrative purposes only and are not investment recommendations. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance. The investment program does not mirror this index and the volatility may be materially different from the volatility of the S&P 500. Reference or comparison to an index does not imply that the portfolio will be constructed in the same way as the index or achieve returns, volatility, or other results similar to the index. Indices are unmanaged, include the reinvestment of dividends and do not reflect transaction costs.

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