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| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
The Tectonic Opportunities Fund's core thesis is that active capital preservation combined with rapid portfolio rotation between overvalued growth sectors and real assets can deliver superior risk-adjusted returns across market cycles. In the first quarter of 2026, the fund generated a positive net return of 4.8% by successfully executing a two-stage defensive strategy. First, the manager anticipated a correction in the frothy technology sector in January, rotating completely out of tech and into resources. Second, as geopolitical conflict erupted between US-Israeli forces and Iran in late February, the fund swiftly reduced its equity exposure by approximately 80% to cash and established short hedges on the Nasdaq and Nikkei. These tactical actions successfully averted a substantial drawdown. Following the initial market shock, the fund began redeploying capital back into resources and commodities, particularly gold, energy, copper, and agriculture, where structural supply constraints and geopolitical inflation act as tailwinds.
Active capital preservation and rapid tactical shifts between overvalued technology sectors and hard commodity assets can successfully shield and grow capital through volatile macroeconomic and geopolitical cycles.
The manager anticipates that the macroeconomic environment will remain volatile and unpredictable in the quarters ahead. They have begun cautiously redeploying their cash reserves back into high-quality resources, gold, energy, and copper, which they believe are uniquely supported by structural long-term deficits and geopolitical inflation.
As of Mar 31, 2026
Brad Sanders, CFA, serves as Co-Portfolio Manager and Managing Director of Tectonic Advisors with 23 years of industry experience. He joined Tectonic in 2009 after spending 8 years as an advisor, bringing expertise in global macroeconomic analysis and equity & fixed income portfolio management. Sanders is a CFA charterholder with educational background from SMU Cox School of Business and has been registered with Tectonic Advisors LLC since March 2009 with no regulatory disclosures. Kelly Hackett serves as Head of Family Office Services, focusing on philanthropic giving strategies while maintaining extensive board involvement with major institutions including the Lilly Family School of Philanthropy and Baylor College of Medicine.
Lead Portfolio Manager
High Conviction Bullish
Market Conviction
A high score of 0.85 is justified by the fund's highly concentrated private holding in Firmus, which was written up significantly and is protected by a complete temporary halt on new fund inflows. Additionally, the manager demonstrated immense conviction by executing a complete exit of all tech positions and subsequently shorting major global indices.
Growth Outlook
The score of 0.25 reflects a highly cautious view of the broader markets. The manager highlights frothy tech valuations, escalating geopolitical conflicts, and potential AI spending cannibalization, warning that the quarters ahead are unlikely to be straightforward.
Risk Appetite
The score of 0.25 matches the fund's decision to maintain massive cash buffers and deploy active short hedges. Though they are slowly buying back, they remain defensively insulated to prioritize capital preservation above all else.
Capital Deployment
The score of 0.15 reflects aggressive de-risking during the quarter, as the fund slashed its listed equity exposure by approximately 80% and moved it to cash. While the manager began deploying capital back into resources toward the end of March, the net posture of the fund remains extremely cash-heavy compared to typical active periods.
Forward Guidance
Assigning 0.75 indicates a clear intent to selectively buy back into the market. The manager explicitly outlines their ongoing redeployment into gold, copper, and energy positions at lower price levels, signaling an active and selective buying posture.
Language Signal
A neutral score of 0.50 is appropriate as the text is balanced between highly defensive, risk-averse vocabulary concerning geopolitical conflicts, Nasdaq sell-offs, and drawdowns, alongside highly optimistic language describing the structural advantages of the copper and gold holdings.
Perceived Risk
An elevated score of 0.85 reflects the manager's deep concern over systemic global risks, ranging from active Middle East warfare and oil supply disruptions to structural tech sector earnings threats. The severe 80% cash liquidation underscores this high risk perception.
Opportunity Density
A score of 0.60 is selected because opportunities are viewed as highly scarce and expensive in the mainstream growth sectors, yet abundant within 'old economy' resources. The manager sees highly defined opportunities in copper, gold, and infrastructure-leveraged hard assets.
Time Horizon
A score of 0.65 reflects a medium-to-long term investment horizon. While they actively trade short-term macro trends, their primary investments in copper producers and the private infrastructure roll-out of Firmus are built on multi-year secular trends like electrification and AI factory maturation.
Top Conviction Themes
Key Catalysts
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