• Smart Cash
  • Performance
  • Log in
  • Get Started
ResearchUpdates heading into 2024.

Updates heading into 2024.

Dec 19, 2023

As we head into year end, we elected to initiate a new position in auto wholesaler ACV Auctions (ACVA) in our Opportunities strategy. We also took the opportunity to add to a variety of holdings including Confluent (CFLT), General Electric (GE), and Xpel Inc. (XPEL) while trimming Elastic (ESTC) and Okta Inc. (OKTA) in an effort to control risk around the edges.

The results of the trade increase our net exposure and decrease our strategic cash weight. 

Let’s dive in.


The future of wholesale

ACV Auctions (ACVA) operates a digital marketplace, connecting buyers and sellers of wholesale vehicles nationwide. With 24/7 auctions and value-add services like Transportation, Financing, and Data Services, ACVA ensures an efficient experience for dealers on its platform.

Despite strong underlying fundamentals to date, ACVA’s recent performance has been partially overshadowed by the macro-induced slowdown in the automotive sector.

While these macro challenges persist, there are some signs that wholesale markets may be improving: new car production is inching higher, manufacturing incentives are on the rise, and a steady buildup of inventory should encourage dealers to increase their wholesale transactions. 

Although the potential wholesale recovery and the industry's secular growth provide us with optimism, our conviction centers around the company’s fundamentals. ACVA presents compelling unit economics and competitive advantages compared to peers that we believe should amplify its network effects in a “winner take most” market. 

This, combined with the company’s strategic digital advantage could present a favorable long-term investment opportunity as macro headwinds normalize.

Updates heading into 2024

We elected to initiate a position in Confluent (CFLT) in early November and the stock is up an impressive ~25% since. Secular adoption of data streaming is a fast growing industry and Confluent sits at the center of this innovation story. Industry commentary remains strong and we added to the stock despite the recent run-up.

General Electric (GE) provided a very strong earnings print that reiterates a steady recovery in commercial traffic volumes. This in combination with increasing market share with its Next-Gen LEAP engine confirms that our thesis is tracking. We elected to add ~1% to the aerospace conglomerate. 

We spoke with Xpel’s (XPEL) CEO and CFO last week and have become incrementally more confident in management’s ability to grow its Auto business and successfully expand into adjacent markets. Rumors of new competitive products and Tesla attempting to perform some of Xpel’s services in house have led to recent underperformance, but the weakness allowed us to opportunistically add to the stock.

Elastic (ESTC) smashed their earnings report after showcasing meaningful improvements in consumption trends alongside an impressive beat on profitability. Cloud consumption is moving in the right direction across the industry but with the stock up ~125% year-to-date, trimming here allows us to take some chips off the table as we approach year-end.

Okta (OKTA) has been at the center of a negative news cycle as a security breach has thrown off investor and consumer confidence. Management has reassured consumers that the impacts of the breach are under control but the overhang may be a drag on the stock over the near-term. Trimming here allows us to control the potential downside risk moving forward.


As always, let us know if you have any questions about the recent trades; we’re happy to assist.

– Your Titan Team


Disclosures:

Titan Global Capital Management USA LLC ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. 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. Contact Titan at support@titan.com.

Trade communications are meant for informational purposes only. Statements made in these communications represent opinions and conjecture, and should not be construed as a guarantee of future results. Communications may contain forward-looking statements, which reflect our current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. We do not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. 

References to specific stock performances are provided for historical context and are not indicative of future results. Please note that any mention of gains or losses in our trade communications reflects those at the strategy level. Actual gains or losses realized in individual client accounts may vary based on factors such as the timing of individual trades, new or recurring deposits, and the specific cost basis for each holding in a client's account. As such, the figures presented may not represent the actual gains or losses experienced by any individual client.Valuation assessments in our communications are based on internal analysis and are for informational purposes only. They should not be the sole basis for investment decisions and may differ from others' views or assessments. No warranty is made regarding their accuracy or completeness.

All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. There is always the potential of losing money. Keep in mind that while diversification may help spread risk, it does not ensure a profit or protect against loss. The rate of return on investments can vary widely over time, especially for long term investments. Past performance is no guarantee of future results. 

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. This is not an offer, solicitation of an offer, or advice to buy or sell securities, or any other product offered by Titan or any third party.

The content provided in this email is for informational purposes only and is not investment or financial advice, tax or legal advice, an offer, solicitation of an offer, or advice to buy or sell securities or investment products. Please visit www.titan.com/legal for important disclosures.

Cash Management

Smart Cash

Smart Cash FAQs

Cash Options

Get Smart Cash

InstagramTwitterYoutubeLinkedIn

© 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.