Titan Invest works similarly to a hedge fund, giving you access to an investment team to actively manage your capital. The world of investment and hedge funds is confusing and often overly technical for the ordinary person. It does not help that Wall Street is an exclusive club that ignores everyday investors instead of catering only to the ultra-wealthy investors. Titan is an automated investment tool that makes it possible for anyone to make hedge-like investments with ease.
Also called Titanvest, Titan Invest is a robo-advisor that offers everyday consumers an opportunity to make personalized hedge investments and protect their investments when the market tumbles. The company achieves this by replicating the investment strategies of the top long-term hedge funds investors.
What is a Hedge Fund?
Simply put, a hedge fund is an alternative investment of funds. This is a pool of money, often from professional investors and prospectors, that is invested with the intent to make a profit. A hedge fund is typically managed by an investment institution or institutional investors who rely on non-traditional strategies to minimize risk while maximizing the returns on the invested funds.
Hedge funds are becoming an increasingly profitable way to make long-term investments. This is mainly because the investments are made with the idea to make a profit regardless of whether the market goes up or down. A hedge fund is marketed as an alternative investment that is immune to market forces, although this may not always be the case.
Titan Invest and Hedge Funds: The Differences
Titan Invest is a private fund that makes rigorous investments that combine new and old school strategies to identify top-quality businesses that can compound an everyday’s investor’s capital at a high rate over time.”
Technically, Titan is not a hedge fund, despite using similar investment strategies. They are an automated investment advisor or Robo-advisor registered under the SEC whose investment portfolios are managed by software and sometimes professionals.
Unlike a hedge fund, Titan keeps its investors in the loop for every investment made. The company has in-house investment researchers who work behind the scenes to ensure the investment algorithm works for their clients. They also aim to guide and inform their clients on their investments with detailed reports, simplified market updates, and digestible videos and podcasts.
Is Titan Invest Right for You?
While it is marketed as an alternative to hedge funds for everyday consumers, Titan is not for everybody. The platform is ideal for beginner investors keen on staying on top of an actively managed stock portfolio.
Considering the amount of information the company provides about investments, the Robo-advisor is ideal for you if you want to receive regular and in-depth Wall Street-level intel on your investments.
Titan uses diverse investment strategies and appeals to investors who wish to gain access to hedge-fund-style investment but do not have tens of thousands of dollars to invest.
How the Titan Invest Platform Works
Titan was founded by former hedge fund managers looking to make investment advice and opportunities available to wealthy Wall Street investors available to their friends and family.
They developed special software that analyzes the investments and filings of existing hedge funds. It then tracks long-term holdings and copies the most promising investments. Finally, the software makes investment recommendations to which a team of professionals can adhere or modify.
Presently, Titan offers three investment options with unique strategies:
- Titan Flagship – This is a fund for large-cap growth strategy investment.
- Titan Opportunities – This is a fund for small-cap and mid-cap growth strategy investment.
- Titan Offshore – A new investment option for international funds launched in April 2021.
Titan uses specific criteria to analyze stocks to invest in, including:
- Attractive stock value growth prospects
- The most excellently managed companies
- Stocks with a promise of high returns in the long-term
- Investments with strong returns generation
- Wide moat minimal risk investments
An investor’s investors can hold about 20 stocks. These are adjusted quarterly based on performance. The poorly-performing stocks may be removed, and new promising stocks added to the portfolio.
The real hedge-like investment is made by shorting 0 to 20% of the market based on the investor’s risk tolerance. The investment is optimized to minimize risk and drawdowns in the event of a market drop. Should the market draw down, the value of the short position goes up, in the process offsetting the decline of the investor’s portfolio.
One of the best features of Titan is that it is an active investment portfolio manager. The software makes it easy for the investor to track the performance of their investments right on their smartphones. They can also choose to receive regular updates and insights on every position held as well as informational videos and reports.
All accounts on Titan must maintain a minimum balance to operate. The minimum investment balance for Titan Flagship is $100, while the minimum for Titan Opportunities accounts is $10,000.
One of the features that make Titan Invest attractive to everyday investors is that they can withdraw their money at any time, right from the mobile app. The withdrawal typically takes between two and four days to process and is not charged.
Types of Accounts
Titan offers multiple types of accounts, including:
- Traditional investment accounts
- Taxable accounts
- Roth accounts
- Inherited or beneficiary IRAs
Investors also have the option to rollover an existing 401(k), 403(b), or IRA account into a Titan IRA account.
Titan Invest Fees and Costs
- Investors with over $10,000 in investments are charged a flat annual rate of 1%.
- Investors with less than $10,000 are charged a flat fee of $5 per month.
How to Sign Up with Titan
You must be a US Citizen aged 18 years or older to open a brokerage account and invest with Titan and provide basic information about yourself. After you have created an account, which takes roughly 2 minutes, you will need to choose a type of account (taxable or retirement account) and transfer some funds into it by linking our bank account or sending a wire. Your money then goes into an account that is actively managed by the Titan’s team. If you want to get started, visit the Titan website to sign up now.