Titan Bounces Back In May With 21% Jump

Jun 14 2010 | 12:03pm ET

Titan Capital Group picked one of the worst months for hedge funds to make its move, soaring by double-digits—and erasing a double-digit loss—last month.

The firm’s $400 million flagship registered a 21% jump in May, pushing the fund’s year-to-date return to 7.9%, Dow Jones Newswires reports. It was a welcome turnaround for Titan, which had lost 11.7% in March and was down 4.5% last year, when the average hedge fund enjoyed a 20% return.

The average hedge fund dropped between 2% and 3% last month, and is up just over 1% on the year, according to several hedge fund indices.

Titan said the Global Return Fund benefitted from the wild volatility in May, with the fund earning “solid returns on mandatory convertibles as these positions are quite defensive and performed well with an increase in volatility.”

What's more, Titan said in a letter to investors that it is optimistic the good times will continue to roll.

“Longer-dated volatility, out to 10 years, is now higher than during the apex of the crisis in 2008/2009,” the firm said. “Shorter-dated volatility continues to be sold, increasing the likelihood that the market will remain volatile, as hedging these positions requires selling on down days and buying on up days. The portfolio should generate solid returns in the current market environment.”


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...