- Advertisement -
- Advertisement -

Related

Titan Sends Money Back to Investors

Industry Report

- Advertisement -

Stockholm (HedgeNordic) – Titan Opportunities Fund, a fund founded by Norwegian Espen Westeren (pictured), is shutting down. The fund started investing in June of 2016 after the massive price decline of crude oil hit both equity- and credit-related securities issued by oil companies. As “the market did not develop as we expected when we established the fund in June 2016,” Westeren tells Finansavisen, Titan Opportunities Fund will cease to operate and return the capital to its investors.

The team running Titan Opportunities Fund relied on their cyclical investing experience, distressed investing expertise and sector specialization to invest in stocks and bonds issued by companies operating in cyclical and commodity-related sectors. The fund returned almost 57 percent since its launch in June 2016 to the end of 2017, followed by a loss of 23 percent in 2018 and a nearly three percent-decline in 2019.

Whereas the broader stock market has performed strongly since the fund’s inception, the energy sector has lagged behind over the past couple of years. “We have done a good job at identifying some opportunities in the sector, but we had overestimated the potential for recovery following the downturn in the aftermath of the fall in oil prices in 2014,” Westeren tells Finansavisen. “We have not been able to deliver the return we had hoped to achieve,” he adds.

The increase in shale oil and gas production in the United States represents one reason the energy sector has developed differently than initially expected. “We expected the oil industry to recover sharply, but underestimated the scale and importance of American shale oil,” acknowledges Westeren. “At the same time, we failed to adequately take into account the rapid shift in investors’ interest towards ESG-related investments,” he emphasizes.

Titan Opportunities Fund delivered a cumulative return of 17 percent since launching in mid-2016 to the end of 2019. The strong performance in the first two years “unfortunately turned around and much of the accumulated returns disappeared during 2018 and last year,” says Westeren. “Now we take the consequence of this and send the money back to our investors.”

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

Formue Highlights Private Credit’s Role in New Economic Era

Nordic wealth manager Formue has long prided itself on delivering institutional-grade investment solutions to high-net-worth individuals. As global economic conditions shift, Formue sees an important role...

Chelonia Select Builds on Solid 2024

Stock-picking hedge fund Chelonia Select is off to a strong start in 2025 with an 8.3 percent gain through the end of May, building...

CABA Capital Expands the Flex Series

Danish fixed-income boutique CABA Capital has launched the third vintage of its leveraged, closed-end fixed income strategy: CABA Flex3. The fund aims to deliver...

Aegon AM Launches Capital Call Finance Fund

Aegon Asset Management has launched the Aegon Capital Call Finance Fund, providing institutional investors with access to the capital call finance market – a...

Evli’s Co-Investment Strategy: Opening the Door to Direct Private Equity Deals

Co-investing alongside private equity funds has become increasingly important for institutional investors seeking greater control, reduced fees, and selective deal exposure. Once reserved for...

From Loans to Layers: Navigating the CLO Capital Stack

Collateralized Loan Obligations (CLOs) play an important role in credit markets by bridging the capital needs of corporate borrowers with the return objectives of...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.