Titan Invest is a robo-advisor that aims to outperform the market by investing like a hedge fund. Instead of offering a selection of ETF-based portfolios, Titan actively manages a concentrated portfolio of individual stocks. The platform uses a combination of human expertise and algorithmic trading to select stocks and manage risk.
The company was founded in 2018 by Joe Percoco and Clayton Gardner, both former hedge fund analysts. Titan requires a minimum investment of $500 and charges a 1% annual fee for its services. While this fee is higher than many other robo-advisors, it is still significantly lower than the fees charged by traditional hedge funds.
Titan's investment strategy is based on the idea that a concentrated portfolio of high-quality stocks can outperform the market over the long term. The platform currently offers two portfolios: the Flagship Portfolio, which holds 20-25 stocks, and the Opportunities Portfolio, which holds 5-10 stocks.
One of the advantages of Titan's approach is that it allows investors to have more control over their investments. Unlike ETFs, which are passive and track an index, Titan's portfolios are actively managed and can be customized to meet individual investor goals.
However, there are also risk associated with Titan's strategy. concentrated portfolios are more volatile than diversified portfolios, meaning that they are more likely to experience large swings in value. Additionally, because Titan invests in individual stocks, there is a higher risk of individual companies performing poorly and dragging down the overall portfolio.
Despite these risk, Titan has delivered strong returns since its inception. As of June 2021, the Flagship Portfolio had returned 36.6% annually since its launch, outperforming the S&P 500 by a wide margin. The Opportunities Portfolio had returned 70.8% annually over the same period.
Titan has also attracted attention from high-profile investors and financial media. In June 2021, Cathie Wood's ARK Investment Management made its latest venture fund available exclusively to retail investors on Titan Invest. Additionally, in July 2021, Maven Capital Partners announced that it had reached a deal to divest its stake in Titan Wealth to US-based private equity firm Parthenon Capital.
Despite the success and attention, some investors remain skeptical of Titan's approach. The platform's active management and concentration on individual stocks can lead to higher fees and risk compared to other robo-advisors. Additionally, some critics argue that Titan's returns may be due to the overall bull market, rather than its investment strategy.
Investors should carefully consider their investment goals and risk tolerance before investing with Titan. While the platform offers a unique approach to investing, it may not be suitable for all investors.