TOM LEE: Fed starting an easing cycle = historically positive for stocks. He believes $NVDA remains undervalued at 26X P/E as the scarcest stock in the world and cheaper than $COST and $WMT 49X and 33X P/E
•📈 GRNY Reaches $2.7B AUM: As of Sept 18, GRNY closed at $24.71 with a NAV of $24.68 and total assets of $2.7B. The fund gained +4.22% last week vs. the S&P 500’s +1.88%, an outperformance of +288 basis points. Year-to-date, GRNY is up +23.66%, ahead of the S&P 500 by +10.12%. For standardized performance as of the most recent calendar quarter end, please visit our website HERE. Fund Launch Date: November 7, 2024. Performance data based on Net Asset Value (NAV). •🏦 Fed Easing Cycle as a Tailwind: The Fed’s 25 bps rate cut signals the start of an easing cycle, historically a constructive backdrop for equities. Markets responded with small caps up +250 bps and the Nasdaq gaining +100 bps within 24 hours. •📊 Leadership and Valuation Opportunities: We expect liquidity to support leadership in MAG7 and AI, crypto (Bitcoin & Ethereum), and interest rate–sensitive groups like small caps and financials. Within AI, NVIDIA ($NVDA) continues to stand out at 26x P/E, trading below Costco (49x) and Walmart (33x) despite its scarcity and central role in the AI ecosystem.
P/E (Price-to-Earnings Ratio): A valuation ratio that shows how much investors are willing to pay per dollar of a company’s earnings. BPS (Basis points): is one one-hundredth (1/100th) of one percentage point.
About Fundstrat Capital
Fundstrat Capital is an investment management firm led by Chief Investment Officer Tom Lee, specializing in thematic, research-driven equity strategies. The firm applies in-depth macroeconomic, industry, and market trend analysis to develop actively managed investment solutions for a broad range of investors.
