Tom Lee: 5 Reasons for V-Shape Recovery & $GRNY Rebalance Adds $HOOD $MNST $KLAC $GE $FICO

About this Video

• Video Title: Tom Lee: 5 Reasons for V-Shape Recovery & $GRNY Rebalance Adds $HOOD $MNST $KLAC $GE $FICO
• Channel: Fundstrat Capital
• Speakers: Tom Lee
• Duration: 00:11:25

Introduction

This video provides a weekly update on Fundstrat Capital's US Large Cap Granny Shots ETF ($GRNY). Tom Lee, the chief investment officer, discusses the ETF's recent performance, a significant market recovery following a "black swan" event, and the reasons behind that rapid recovery. He also details the ETF's rebalancing, including the addition of five new stocks.

Key Takeaways

• Granny Shots ETF Performance: The $GRNY ETF celebrated its sixth anniversary, surpassing $1 billion in assets. It outperformed the S&P 500 by 1.08% for the week of May 9th and by 252 basis points year-to-date. A previous dip in February and March is attributed to a "black swan" event.
• V-Shaped Market Recovery: The market experienced a V-shaped recovery after a significant decline. Five factors contributed: investors misjudged the end of US exceptionalism; recession predictions proved inaccurate (high-yield market did not confirm recession); supply chain concerns were overblown; the VIX surge forced derisking, followed by re-risking; and retail investors correctly bought the dip, counter to hedge fund shorting.
• Granny Shots Rebalance: The ETF underwent a quarterly rebalance, deleting Accenture and Qualcomm and adding five stocks: FICO, GE Aerospace, Robinhood, KLA, and Monster Beverage. The additions align with the ETF's style tilts (growth, cyclicals, growth quality) and seasonal trends.
• Stock Additions: The new additions represent companies considered key players in fintech, sovereign border/energy/cyber security, millennial financial services, AI, and functional drinks.
• Granny Shots Strategy: The "Granny Shot" investment strategy focuses on long-term themes (millennial strategy, global labor suppliers, energy and cyber security, easing financial conditions) and tactical portfolios (style tilt, seasonality, PMI recoveries). Stocks must appear in multiple themes to qualify.