Ideal portfolio sizing is critical throughout our funds, with portfolios typically consisting of 10 to 20 underlying managers. We believe that adding too many managers to a portfolio lessens the ability to know what you own and introduces unknown risks. In addition, over-diversifying can diminish returns without a reduction in risk.
Likewise, we are also disciplined about the asset size of our funds and close them if adding additional capital would require exceeding our desired manager count, introducing new strategies and risks outside of our core competency, or using second-tier managers.
For our long/short equity, global macro, event-driven and multi-strategy investments, we:
- Employ an investment process that focuses on three key risks — leverage, liquidity and concentration.
- Seek managers and strategies that generate attractive risk versus return profiles through alpha generation, trade construction and active risk management.
- Identify managers early in their lifecycle so that we can secure capacity for future allocations and negotiate favorable terms.
Our credit investments also follow the same general guidelines; however, they tend to be slightly less liquid and employ a top-down view in order to capitalize on asymmetric investment opportunities.
We offer two multi-strategy funds that seek to provide consistent, superior capital appreciation with low volatility. Our flagship multi-strategy fund encompasses the firm’s heritage of alternative investment manager selection. It provides diversification and low volatility and is highly liquid. The fund portfolio consists of approximately 15 to 20 managers using long/short equity, global macro, multi-strategy and event-driven strategies.
Our credit-focused multi-strategy fund takes an opportunistic approach, with significant exposure to niche credit strategies. The fund is allocated to a diversified portfolio of approximately 15 to 20 managers using credit, long/short equity, multi-strategy and global macro strategies, with an objective of generating absolute returns in excess of traditional fixed-income markets — with low volatility and with low correlation to traditional benchmarks.
Our global long/short equity-focused fund seeks to provide exposure to global equity markets with lower volatility. The fund invests in approximately 10 to 15 long/short equity managers, allows for up to 60% allocation to non-U.S. equity portfolios and may have significant concentration in small- and mid-sized managers. We seek to maintain liquidity in our investments and avoid managers that rely on illiquid strategies or excessive leverage.
Our Emerging Managers platform focuses on investing in early-stage and smaller hedge funds with high alpha potential. Titan Advisors has proven success in identifying managers early in their lifecycle. Finding Emerging Managers enables us to foster their development until they reach the maturity needed for inclusion in our other strategies. This philosophy also provides an opportunity to produce superior absolute returns and to secure favorable terms and future investment capacity. In 2005, we opened the platform for external investments to enable investors to take early advantage of these finds.
Our Insurance Dedicated Funds are available via tax-efficient insurance solutions. The Funds seek to deliver diversification, consistent returns and low volatility for Private Placement Life Insurance (PPLI), Private Placement Variable Annuity (PPVA) and Corporate Owned Life Insurance (COLI) policyholders. Learn more about the Insurance Dedicated Funds opportunity.
Engagement by investment team and principals
Broad access to information and professionals
Keeping allocations liquid to remain nimble
Unique depth of review including veto power by team
1,000 managers initially reviewed annually; only 10 to 15 added as allocations
Greater investment power as pooled allocation
Investing with Titan Multi-Investor Funds
Multi-Investor Funds Team Patrick Campo, Director, Research
Spending his career in long/short equity and alternative investments, Patrick Campo is the director of long/short equity and event-driven strategies at Titan. He contributes to the portfolio construction process for all of our investments.
Across almost 30 years of financial experience, Herman Laret has been a portfolio manager, head of global macro product sales, trader and has invested in hedge funds on behalf of Credit Suisse.
Brian Walsh joined Titan as a principal and chief strategist upon the closing of Titan’s acquisition of Saguenay Strathmore Capital, Ltd. He co-founded Saguenay Capital in 2002, an alternatives-focused investment management firm with a focus on credit.
To learn more about multi-investor funds, contact our Marketing team.