We focus on creating an institutional quality portfolio that is customized to your individual needs
Why Titus Road Management?
Portfolios built to weather multiple market environments
High fees are like swimming upstream; it takes a lot longer to reach your goals
Passive strategies for highly efficient markets, active strategies for unique opportunities
Investment Decisions That Matter:Active Where It Counts
Asset Allocation is Responsible for over 90% of Portfolio Return Variation1
Your Portfolio: Passive and Active
- Active investment decisions made by experienced global investment committee
- Core portfolio uses low cost passive ETFs and Funds
- Active strategies for unique opportunities
- Low Fee Active Management
- Low Fee Passive
1. Determinants of Portfolio Performance II: An Update, May/June 1991, Financial Analyst Journal, Brinson, Singer, Beebower
Why be active? Doesn’t modern portfolio theory (MPT) say to be 100% passive.
Titus Road Management is active because we believe markets are not perfectly efficient and there are, at times, a clear opportunity for better performance. Modern Portfolio Theory was introduced in 1952 by Harry Markowtiz and is a mathematical model that assumes a perfectly rational world and that the market is perfectly efficient 1.
- Markets are 100% Efficient
- Risk is normally distributed
- Upside risk is proportional to downside risk
Titus Road Management Believes:
- Markets are mostly efficient
- Low fee active management has a place
- Risk is not normally distributed and downside risk more important than upside risk
So you don’t believe in MPT? – Physics in Theory and Engineering in Practice
Titus Road Management believes MPT is the starting place, as all good theories are. However, MPT assumes a perfectly efficient world. The world is not efficient and that allows for investment opportunities.
1) Markowitz, H.M. (March 1952). "Portfolio Selection". The Journal of Finance 7 (1): 77–91.
2) Laurence B. Siegel, "Read your Sharpe and Markowitz". Sept/Oct 2014 CFA Institute Magazine
Fees Should Be Low
|Titus Road Management Fee Example:|
|ETF and Fund expense:||0.25%1|
|Titus Road Management Fee:||0.73%2|
|Typical Investment Advisor Example:|
|Average Mutual Fund Expense:||0.69%3|
|Sample Investment Advisor Fee:||1.5%|