- Titan, the startup that wants to become the active manager of a new generation of investors, has raised $ 58 million.
- Titan sought a role as a âpremierâ asset manager for Millennials and Gen Z.
- Titan’s approach to active investing is to combine a core equity portfolio of around 20 stocks, hedged for clients’ unique risk appetites.
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Titan, the start-up looking to be the active manager of a new generation of investors, raised $ 58 million in a star-studded funding round that valued the company at $ 450 million, the company said in a declaration.
The fundraising round, led by Andreessen Horowitz, featured a group of celebrities including Will Smith, Jared Leto and Kevin Durant. With some 30,000 customers, Titan manages $ 500 million in assets, a figure expected to cross the $ 1 billion mark this year, according to co-founder Joe Percoco. says Bloomberg.
Titan sought a role as a âpremierâ asset manager for Millennials and Gen Z investors, positioning themselves as Fidelity or Blackrock for a younger cohort. Its founders talk about democratizing access to managed portfolios. The company favors mobile and has a minimum investment threshold of $ 100, citing Robinhood comparisons.
Unlike Robinhood, Titan users don’t need to pick stocks – instead, they rely on internal investing strategies explained in quick 90-second videos. Also unlike Robinhood, Titan invoice fees for its active management services: 1% of the account value for investors with at least $ 10,000 or $ 5 per month for small users.
Titan’s approach to active investing is to combine a core equity portfolio of around 20 stocks with loss coverage, where the size of the coverage is customized based on the risk profiles of the investors. users. For example, Titan’s large cap fund will allocate between 0% and 20% of the portfolio to a reverse S&P 500 ETF, depending on market conditions and user risk tolerance.
Two of Titan’s three funds, large caps and small and mid caps, have beaten the market since their inception. But the company’s international fund, launched in April, has fallen far short of its reference, returning a cumulative 1.7% where the market lost 4.3%.