Jeff Wrona, manager of the True Rock Fund (TRUEX), reported a 49% return for the year 2026, significantly outperforming the broader market. As of February, his top holding was SanDisk (SNDK), which comprised 9.2% of the fund's portfolio. Wrona's investment strategy includes a long-short approach and options trading, with a turnover rate of 685%, placing him in the top 1% of all funds, according to Morningstar data.
Investment Strategy
Wrona's strategy is characterized by a focus on 'business momentum' rather than stock price momentum. He emphasizes metrics such as sales growth, earnings growth, profit margins, and valuations. The surge in artificial intelligence and the resulting earnings growth for chipmakers and infrastructure firms have been significant contributors to his fund's success. Since its launch in February 2020, the True Rock Fund has gained 277%, outperforming the S&P 500, which has returned 132% during the same period.
Performance Metrics
The True Rock Fund has consistently beaten 99% of similar funds over the last one, three, and five years, according to Morningstar. Despite his impressive track record, Wrona remains cautious about revealing specific details of his investment decisions, preferring to keep his strategy closely guarded. He noted that the AI buildout has been a key theme driving his top holdings and overall performance.
Wrona's success could influence investor sentiment towards technology and AI-related stocks, particularly in the semiconductor sector, as his strategy highlights the importance of business fundamentals in driving returns. Investors will watch for any updates on Wrona's portfolio and strategy in the coming months as the AI sector continues to evolve.