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Thornburg's High-Conviction Approach Rooted in Santa Fe

BY | ETF Database
7:07 am ET 08/26/26 | 9 VIEWS
Thornburg Investment Management built its high-conviction approach in Santa Fe, N.M., where Garrett Thornburg founded the firm in 1982. The location still shapes how the firm selects stocks today, according to Thornburg.Key Takeaways TFGZ holds 43 stocks, a 74.1% active share against its benchmark. Alphabet, Microsoft and Broadcom make up nearly a quarter of the fund’s assets. Tech accounts for 36.7% of the portfolio, well under the benchmark’s 53.5% weight. Modern investors face a nonstop stream of headlines and algorithm-driven price swings that can pull attention from company fundamentals. Thornburg says its distance from Wall Street keeps research focused on fundamentals, not short-term price moves. See more: Is It Too Late to Add International Stocks? That approach is evident in the Thornburg Focus Growth ETF (TFGZ). As of July 31, the fund holds 43 stocks with a 74.1% active share relative to the Russell 1000 Growth Index, according to Thornburg data. For advisors weighing active versus passive exposure, the gap indicates how far the fund’s holdings diverge from its benchmark. That divergence from the benchmark has roots in the firm’s home base. Santa Fe has drawn artists, craftspeople, and independent thinkers since long before Thornburg arrived in 1982. Institutions like the Santa Fe Institute, which studies complex systems, reflect the city’s tradition of original thinking. Thornburg’s investment teams debate ideas within that setting, the firm said, rather than reacting to daily price swings.Why High Conviction Requires DistanceConcentration isn’t the goal, Thornburg said. It’s the result of selectivity, with portfolio teams building positions only after a stock clears a bar for business quality, valuation, and capital allocation. Portfolio managers Nicholas Anderson and Julian Serafini run TFGZ using a three-basket construction. The approach aims to balance growth exposure while managing volatility, the fund’s fact sheet shows. The ETF held $226.9 million in assets as of July 31 and carried a 0.79% net expense ratio, Thornburg said. Alphabet Inc. (GOOGL) was the fund’s largest position at 11.3% of assets as of August 25, according to Thornburg. Microsoft Corp. (MSFT) followed at 7.8%, with Broadcom Inc. (AVGO) at 5.7%. Credo Technology Group Holding (CRDO) was the fund’s fourth-largest holding at 4.5% of assets as of August 25, Thornburg data shows. The tech company, which makes high-speed connectivity chips for data centers, sat alongside Alphabet and Microsoft among the portfolio’s top five holdings. Information technology (IT) made up 36.7% of the portfolio as of July 31, below the Russell 1000 Growth Index’s 53.5% weighting, Thornburg reports. Financials and industrials, meanwhile, carried heavier allocations than the benchmark. For more news, information, and analysis, visit our Portfolio Strategies Content Hub.

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