Our latest high-conviction trades

On Wednesday, we made trades in our Opportunities strategy in an effort to reposition capital towards some of our highest conviction ideas. 

The results of the trades involved trimming Moody’s (MCO), a more traditional financial ratings agency, and using the proceeds to add to First Citizens Bank (FCNCA), a regional bank that should be a key beneficiary of a Republican administration. We also added to our uranium thesis by increasing exposure to Denison Mines (DNN) and NexGen Energy (NXE).

Let’s dive in.

Leaning into relaxed regulation

With the elections finally concluding last week, the implications of a clean “red sweep” for Republicans across the Presidency, Senate, and House could reveal several megatrends unfolding across global markets over the coming months.

Given the Republican-led administration has a strong track record of advocating for pro-growth policies and de-regulation across industries, we believe financials, more specifically regional banks, remain well positioned to benefit from this changing regulatory landscape over the near to medium term.

Moody’s (MCO), a more traditional ratings agency, has delivered strong performance year-to date at +40%, and in turn, organically grew into the largest position in the strategy. In an effort to lean into the banking trends set forward by the Trump Administration, we elected to trim Moody’s to rightsize our exposure and reinvest the proceeds into First Citizens Bank (FCNCA), a notable regional bank that has strong election tailwinds squarely at its back.

Sizing up uranium

If you’re an investor in Offshore, you’ve likely seen this theme before: we’re leaning into uranium. 

The proliferation of AI and data center growth has created a surge in the need for electricity. Uranium, the primary feedstock used in nuclear power, is critical for meeting this accelerating demand given it is the only source of clean, safe, reliable baseload power generation available today.

As Big Tech companies lean on nuclear assets to efficiently power their large-scale data centers plans, uranium remains a critical input for satisfying this growing demand. Given the uranium industry is already facing a strong supply/demand imbalance today, we believe the new entrants to the proverbial table could provide a strong, multi-year tailwind for both physical uranium prices and uranium equities moving forward. 

We’ve been invested in uranium since 2021 and are quite pleased with recent developments. Adding to Denison Mines (DNN) and NexGen Energy (NXE) provides an opportunity for clients to gain higher exposure to the second order impacts of the growing AI market with potentially asymmetric upside as well.

The results of the trades have increased our net exposure to nearly 100% with just 50 basis points allocated to cash. Our high net exposure serves as a reflection of not only our conviction in the potential growth prospects for our highest-conviction ideas across the small cap complex, but also our optimism for equity markets at large over the coming few years.

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.

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