Managed Stocks
About Titan Flagship
Titan Flagship is our U.S. large cap strategy. It seeks to invest in equities of market-leading U.S.-based companies with over $10B in market capitalization. The objective is to outperform the S&P 500 over a 3-5 year horizon.
The Flagship investment process involves deep fundamental research into a company’s operating and financial prospects. The strategy aims to identify companies with durable competitive advantages, strong growth prospects, excellent leadership teams, and attractive valuations. The resulting portfolio consists of ~15-20 long positions, plus a personalized hedge based on each client’s individual risk tolerance, which aims to reduce market exposure during downturns.
The Flagship portfolio is monitored daily and updated by the Portfolio Manager and Investment Team based on the prospective risk/reward of each holding compared to alternatives in the strategy’s investable universe
Flagship Explained
Key Facts
Minimum Investment
$500
Asset Class
Stocks
Liquidity
Daily
Stocks
~15 - 20
Mandate
U.S. Only
Average Market Cap
$566B
Inception Date
2/20/2018
Titan Advisory Fee
$500 - $24,999 Net Deposits
0.90% AUM Per Year
$25,000 - $99,999 Net Deposits
0.80% AUM Per Year
$100,000+ Net Deposits
0.70% AUM Per Year
“Companies in the Flagship portfolio are held to a high bar when it comes to quality of operating model, management and industry dynamics. These are businesses which we hope to be invested in through the cycle.”
Clayton Gardner
Titan Chief Investment Officer
Process
Idea Generation
Flagship’s investable universe includes all U.S.-based stocks with greater than $10B market capitalization. To identify potential candidates, the Investment Team’s Analysts employ quantitative and qualitative research across companies in the investable universe. This research includes filtering by financial metrics we believe are leading indicators of business quality, reading through company filings and transcripts, networking with industry participants, and much more.
Fundamental Research
Once a potential portfolio candidate is identified, the Investment Team conducts bottoms-up fundamental research to determine if the business has durable competitive advantages, strong growth prospects and unit economics, and solid management. This process consists of reading the last few years’ company filings, earnings transcripts, management presentations, and sell-side research to understand how the company and industry operate. Often it involves calls or meetings with management teams, company shareholders, and industry professionals to try to validate the company’s candidacy in the Flagship portfolio. Detailed analysis is also conducted on company’s historical financial statements to understand operating trends.
Valuation
Once the Investment Team has validated the company’s competitive advantages, growth prospects, and management quality, they analyze the stock’s absolute and relative valuation vs. their estimate of its long-run intrinsic value. The team targets a +15% minimum annualized return over a 3-year period for each Flagship holding, assuming little/no multiple expansion.
Portfolio Management
Once a company makes it into the Flagship portfolio, the Portfolio Manager and Analysts monitor the position daily alongside the other holdings, watching for signposts that their thesis is playing out (or not). Typically the ~15-20 Flagship positions are conviction weighted with fairly low annual turnover and occasional rebalancing when the weights deviate widely. Otherwise, positions are held for the long term and only exited/changed when the investment thesis has played out, has deteriorated, or has been eclipsed by a much more attractive risk/reward opportunity in another stock.
Track Record
View Risks & DisclosuresTitan | S&P 500 | |
|---|---|---|
Cumulative Return (since February 2018) | 57.8% | 68.1% |
Annualized Return | 9.2% | 10.5% |
Sharpe Ratio | 0.44 | 0.50 |
Beta | 0.96 | 1.00 |
Alpha | -0.5% | 0.0% |
Best Month | 14.8% | 12.8% |
Worst Month | -14.0% | -12.4% |
Positive Periods | 37 | 41 |
Negative Periods | 26 | 22 |
About Titan
Modern investment management, fit for you
Titan is a managed investment platform. We work with top-tier investment firms to offer curated strategies and funds across asset classes, while also selectively developing our own proprietary products to help meet our clients’ needs. We founded Titan to set the new standard in wealth management: curated, comprehensive, simple-to-use—and fit for you.
Team
Clayton Gardner
Chief Investment Officer
As Co-Founder, Co-CEO and CIO, Clayton oversees portfolio management for Titan’s proprietary strategies.
John Bottcher
Senior Investment Analyst
John has spent several years investing in global equities at multi-billion dollar firms, now focused on Opportunities and Offshore strategies.
Justin Yoo
Investment Analyst
Formerly an analyst at YipitData, Justin is now focuses on Internet and Consumer sectors.
Christopher Seifel
Investment Analyst
With a background in PE, Christopher focuses on the technology sector, specializing in software and semiconductors.
Emily Cherkassky
Multi-Asset Investment Lead
Formerly at a quant hedge fund, Emily oversees portfolio analytics and research across strategies.
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