Manager Adjusts Tech Fund Strategy Amid Market Decline

The Granny Shots ETF manager is buying technology stocks as the fund's price drops, impacting long-term portfolio holders.

Updated on Oct. 27, 2026 in Investing

Manager Adjusts Tech Fund Strategy Amid Market Decline

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Is now a good time for you to increase your investments in technology stocks?

Investment manager Tom Lee is increasing holdings in technology equities following a recent downturn in his firm's large-cap fund. This portfolio adjustment comes as investors weigh macroeconomic shifts and interest rate expectations ahead of the year-end.

Why it matters

Market volatility can influence the performance of specific sector-focused funds, affecting the broader returns for investors holding these positions. Understanding the strategy behind such shifts is essential for managing risk and evaluating long-term portfolio growth potential.

The Fundstrat Granny Shots US Large Cap ETF has returned 9.69% year-to-date, trailing the S&P 500 index which saw a 12.14% return during the same period. Analysts are also tracking a 67% probability for a Federal Reserve interest rate hike in December.

The players

Tom Lee

An investment manager who directs the Fundstrat Granny Shots ETF suite.

Cisco Systems Inc.

A technology company that experienced a 40% stock decline in 1997.

The details

Tom Lee, manager of the Granny Shots ETF suite, is actively purchasing technology stocks as the fund experiences price declines. This strategy follows a period where the fund's price dropped to $26.90 from $28.45 earlier in October. The manager attributes this approach to a belief in AI-driven productivity gains and supply constraints, viewing recent market conditions as a coiled spring ready for potential growth.

The GRNY ETF price was $28.45 on Oct. 9, 2026.
The GRNY ETF price reached $26.90 on Oct. 23, 2026.
The S&P 500 is projected to reach 8,400 by year-end 2026.

Money Landscape

Technology-heavy portfolios are currently navigating a volatile period marked by shifting interest rate expectations and broader economic adjustments. This environment mirrors historical precedents where significant drawdowns in tech valuations were followed by structural rallies.

Investors should monitor their exposure to tech-sector volatility as interest rate decisions, currently priced at a 67% chance of a hike, may influence future equity valuations. Speak with a qualified financial professional to ensure your current holdings align with your risk tolerance and long-term objectives.

The takeaway

Market corrections often prompt reallocations in sector-focused funds, highlighting the importance of balancing aggressive growth plays with broad index holdings. Maintain a long-term perspective and review your asset allocation periodically to ensure it remains consistent with your overall financial plan.