Remember when your gym teacher told you that underhand free throws were more accurate but you’d rather miss every shot than look uncool? Well, Tom Lee didn’t get that memo – and now he’s laughing all the way to the bank with $2 billion in assets.
Lee’s Fundstrat Granny Shots ETF (ticker: GRNY, because of course it is) just hit the $2 billion milestone in less than nine months. To put that in perspective, most ETFs would kill for $200 million after years of trying. This thing basically went from zero to unicorn status faster than you can say “but why is it called granny shots?”
The name comes from that awkward underhand basketball shooting style that actually works better but looks ridiculous. Lee’s investment philosophy is similar: do what works, even if it seems obvious or unglamorous. His fund picks about 35 “high-quality” S&P 500 stocks – think companies like Robinhood and Oracle – based on themes he thinks will dominate the next 5-10 years.
What are these magical themes? Energy, cybersecurity, AI companies that actually help humans do their jobs (not replace them), and – this is my favorite – “the impact of millennials.” Apparently, the generation that killed chain restaurants and the diamond industry is now a legitimate investment thesis. Who knew avocado toast could be so profitable?
The fund is up over 18% this year, beating the S&P 500 by 9 percentage points. Not bad for a strategy named after the most embarrassing way to shoot a basketball.
Lee himself is kind of a Wall Street celebrity – the guy who makes bold market predictions and actually talks to regular people instead of hiding behind jargon. He’s got a massive online following because he explains things in plain English and doesn’t pretend the market is some mystical force only PhD economists can understand.
Of course, there’s a catch (there’s always a catch). The expense ratio is 0.75%, which means you’re paying $75 for every $10,000 invested annually. That’s not cheap, but hey, you’re paying for Lee’s brain and his team’s stock-picking skills. Whether that’s worth it depends on whether they can keep beating the market.
The real lesson here isn’t about ETFs or investment strategies – it’s about not being afraid to look a little silly if it gets results. Lee took a goofy basketball reference, turned it into an investment philosophy, and now manages $2 billion. Meanwhile, most of us are still worried about looking cool while our portfolios underperform.
Sometimes the granny shot is exactly what you need. Just don’t expect your friends to understand why you’re investing in something that sounds like it belongs in a retirement home.