Titan Inv Partners – Fund Manager’s global investment outlook 2H 2014

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Rewriting the laws of gravity!

We are very pleased to report to our investors that during our inaugural year here at Titan, pioneering what is in effect a completely new investable asset class – that being through the use of a spread betting account and the application of professional fund management principles one can generate completely tax free returns, the last year has been a considerable success.

For our early investor adopters the returns which they have enjoyed through investment in our flagship Global Macro fund have been exceptional. Indeed we have pretty much beaten every other managed fund out there, certainly those available to retail investors.

Additionally, until our arrival onto the fund management scene, those same retail investors with relatively modest means have been largely locked out of gaining access to the closed and to many, opaque world of hedge funds. Minimum investments in most funds is typically anywhere between $100,000 – $1m. Our opening investment threshold at Titan is a relatively modest £10,000 and thus we believe that we are truly democratizing access to active absolute return fund management for all investors.

From an investment landscape perspective, the primary question being posed by many “old timers” and those that we would term “sophisticated” investors, is why the market will not correct against a backdrop of indicators that have historically portended of material equity price weakness.

We have opined at length on these indicators in previous reports and so will not exhaust these once again but merely point out that on pure valuation grounds the US equity market is as expensive now as it was prior to the 1929 crash and the 2007/09 Great Financial Crisis shakedown. The only other period where the market has been more expensive was in the grip of the dotcom bubble (1999/2000) – hardly an advocation of sustainable valuations we would contend…

Still, no matter what is thrown at the equity market – poor GDP figures, rising bond yields, falling bond yields, poor earnings, muted insider buying, interest rate cycle turning, tapering, rising inflation etc. etc. etc. the market resolutely refuses to fall. Indeed, we have come to the point where a 1-2% downdraft is newsworthy. One simple technical measure that has proved to be an almost infallible lead indicator over the years is the extension of a major index (in this case the S&P 500) relative to its 37 month exponential moving average – something we have commented on before. Indeed, at the beginning of the year, we highlighted this and positioned ourselves for a snapback. This was duly delivered and our investors profited handsomely from this.

We present below the S&P 500 chart over the last 20 years.


Past performance is not necessarily a guide to future performance.

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