GRNY Fund Boosts MSTR Position Ahead of 46% Surge
Tom Lee's Fundstrat Granny Shots U.S. Large Cap ETF (GRNY) has increased its position in MSTR, a company that provides data and analytics to investors, by a significant margin just before its stock surged 46%.
The move pushed MSTR from one of the fund's smallest holdings to its largest, surpassing Robinhood (HOOD), according to historical portfolio data provided by Bloomberg ETF analyst Eric Balchunas. The increase in MSTR's position has raised questions about Tom Lee's strategy and why GRNY chose to make this significant change.
Tom Lee explained that the recent rebalance in Granny Shots reflects a shift toward 'quality growth' and 'quality cyclicals' consistent with the rate regime and their tactical and seasonal analysis. MSTR fits Fundstrat's investment themes due to its exposure to Bitcoin, technology, and changing financial conditions.
The aggressive increase in MSTR by GRNY was not a random bet or a short-term hype trade. The fund follows a rules-based strategy that combines Fundstrat's macro research with quantitative stock selection, which requires companies to fit at least two of their seven investment themes to qualify. The portfolio is reviewed and rebalanced every quarter.