Tom Lee's Fund Piles into MSTR Before Bitcoin-Friendly Stock Surges

Tom Lee's Fundstrat Granny Shots U.S. Large Cap ETF (GRNY) has made a significant change to its portfolio by increasing its position in MSTR, the parent company of Galaxy Digital. The fund's quarterly rebalance in August saw GRNY increase its holding in MSTR from around 0.45% to 3.02%, making it its largest holding.

This move came just before MSTR shares surged 46% in a month, reaching $142.80. According to Fundstrat founder Tom Lee, the fund's strategy is based on a rules-based approach that combines macro research with quantitative stock selection. MSTR fits this approach due to its exposure to Bitcoin, technology, and changing financial conditions.

Lee stated 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. The fund's holdings can change at the next quarterly rebalance as it reassesses its themes and market conditions.