Titan launches its mobile ‘not a hedge fund’
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Titan launches its mobile ‘not a hedge fund’
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Re: Titan launches its mobile ‘not a hedge fund’
#2This looks very interesting. Has anyone here used it yet? And does hedging really work with such low numbers? I thought the point of hedging was being able to spread the risk across lots of large investments. Can you really spread enough with only $1000?
Re: Titan launches its mobile ‘not a hedge fund’
#3The average person is much better off putting their money in a whole market index fund that charges a tenth of a percent (or less) rather than a managed fund that charges 1%. The managed fund is unlikely to outperform the index fund in the long term.
Re: Titan launches its mobile ‘not a hedge fund’
#4This looks very interesting. Has anyone here used it yet? And does hedging really work with such low numbers? I thought the point of hedging was being able to spread the risk across lots of large investments. Can you really spread enough with only $1000?
Investors invest into the fund, the entirety of which is then available for the hedge, and the total profits/losses redistributed back to individual investors based on their share of the fund's total pool.
Re: Titan launches its mobile ‘not a hedge fund’
#5This looks very interesting. Has anyone here used it yet? And does hedging really work with such low numbers? I thought the point of hedging was being able to spread the risk across lots of large investments. Can you really spread enough with only $1000?
Investors invest into the fund, the entirety of which is then available for the hedge, and the total profits/losses redistributed back to individual investors based on their share of the fund's total pool.
It specifically says they invest in your name and pick shorts based on your risk profile though, which is where I got confused. It is not pooling everyone's money together. So not sure how it actually can hedge with such a small amount of money.
Re: Titan launches its mobile ‘not a hedge fund’
#6The average person is much better off putting their money in a whole market index fund that charges a tenth of a percent (or less) rather than a managed fund that charges 1%. The managed fund is unlikely to outperform the index fund in the long term.
I would go beyond that and say that the average person should use those retirement date targeted funds. Those are usually cheap and minimize risk towards your retirement date.
Re: Titan launches its mobile ‘not a hedge fund’
#7The average person is much better off putting their money in a whole market index fund that charges a tenth of a percent (or less) rather than a managed fund that charges 1%. The managed fund is unlikely to outperform the index fund in the long term.
I disagree. It's very unclear what strategy will work over the next 20 years. Many people are bullish on index funds because research has shown that they outperformed managed funds over the past 10-20 years. It doesn't mean they'll outperform over the next 20 years. Past results are no indication of future results.
Re: Titan launches its mobile ‘not a hedge fund’
#8Earlier quoted context omitted.
Investors invest into the fund, the entirety of which is then available for the hedge, and the total profits/losses redistributed back to individual investors based on their share of the fund's total pool.
It specifically says they invest in your name and pick shorts based on your risk profile though, which is where I got confused. It is not pooling everyone's money together. So not sure how it actually can hedge with such a small amount of money.
Based on the article, they use holdings of the same 20 stocks, and seem to adjust risk exposure by varying the percentage of short-sell. Their Program Brochure[1] backs this up - you get fractional stock as part of an investment pool in the 20 stocks they choose, instead of entire shares, so you get the same relative hedge you would otherwise. They do mention direct ownership, but it's fractional shares still held through Apex.
[1] https://cdn.titanvest.com/library/Titan_Investor_Materials.p...
Re: Titan launches its mobile ‘not a hedge fund’
#9The average person is much better off putting their money in a whole market index fund that charges a tenth of a percent (or less) rather than a managed fund that charges 1%. The managed fund is unlikely to outperform the index fund in the long term.
I disagree. It's very unclear what strategy will work over the next 20 years. Many people are bullish on index funds because research has shown that they outperformed managed funds over the past 10-20 years. It doesn't mean they'll outperform over the next 20 years. Past results are no indication of future results.
Unless you have some kind of special insight, why would you not just go with the flows of the overall market and invest in index funds? Seems like a good default when all options are technically unknown.
Re: Titan launches its mobile ‘not a hedge fund’
#10The average person is much better off putting their money in a whole market index fund that charges a tenth of a percent (or less) rather than a managed fund that charges 1%. The managed fund is unlikely to outperform the index fund in the long term.
I would go beyond that and say that the average person should use those retirement date targeted funds. Those are usually cheap and minimize risk towards your retirement date.
While that is what I have mostly done, the retirement date funds I have had access to tend to have significantly hire fees (sometimes close to double) compared to the index funds. Not sure their performance actually justifies it either.