Great Diamond Liquidates Entire Stake in FTGC Worth $7.8 Million

Great Diamond Partners, LLC fully exited its position in First Trust Global Tactical Commodity Strategy Fund (NASDAQ:FTGC) during the third quarter, executing an estimated $7.82 million trade.

What happened

According to a filing submitted to the U.S. Securities and Exchange Commission on October 20, 2025, Great Diamond Partners, LLC sold its entire position of approximately 317,076 shares in First Trust Global Tactical Commodity Strategy Fund. The estimated value of the trade was $7.82 million. The fund now reports no remaining holdings in FTGC.

What else to know

This was a full liquidation of FTGC, which now represents 0% of the fund’s 13F assets under management. The position previously accounted for 1.65% of fund AUM.

Top holdings after the filing:

• IEFA: $34.4 million (6.7% of AUM)
• IWV: $29 million (5.6% of AUM)
• VTI: $29 million (5.6% of AUM)
• SPY: $15.7 million (3.0% of AUM)
• MSFT: $15.5 million (3.0% of AUM)

As of October 29, 2025, FTGC shares were priced at $26.46, up 10.7% YTD, underperforming the S&P 500 by 6 percentage points during the same period. FTGC currently offers a 2.48% annualized dividend yield.

Company overview

Company snapshot

• Actively managed ETF seeking risk-adjusted returns through diversified exposure to commodity futures, commodity-linked instruments, and total return swaps.
• The portfolio primarily consists of commodity futures contracts and related instruments, accessed via a wholly owned Cayman Islands subsidiary for broad commodity exposure.
• Targets institutional and retail investors seeking diversification beyond traditional equities and fixed income.
• The fund employs a tactical strategy to capture returns from a broad set of commodity markets using futures and related derivatives, providing investors with diversified exposure beyond traditional equities and fixed income.
• FTGC's structure, utilizing a Cayman Islands subsidiary, enables access to commodity-linked returns.

Foolish take

Great Diamond Partners just completely sold off its stake in the First Trust Global Tactical Commodity Strategy Fund—a $7.8 million sale. This looks like a strategic move to dial back its exposure to commodities after the asset class had a decent but bumpy year.

Even though the fund is up almost 11% this year, it's still fallen behind stocks in 2025, mainly because cooling inflation and a stable dollar have put pressure on energy and metal prices. Dumping this position, which was only about 1.6% of the company’s total assets, probably just frees up cash to put into stocks or bonds instead.

The fund itself uses an active strategy to invest in commodities, looking for diversification through things like futures and swaps. This strategy is supposed to act as a hedge against inflation and stock market volatility, but its performance can swing based on changes in global demand and commodity cycles. All in all, Great Diamond's sale seems like a smart decision to reallocate capital, rather than a sign that they've lost long-term faith in the fund.

Glossary

Actively managed ETF: An exchange-traded fund where managers make ongoing investment decisions, rather than tracking a fixed index.
Commodity futures: Contracts to buy or sell a specific quantity of a commodity at a set price on a future date.
Commodity-linked instruments: Financial products whose value is tied to the price movements of commodities.
Total return swaps: Derivative contracts where parties exchange the total return of an asset for a fixed or floating payment.
Wholly owned Cayman Islands subsidiary: An offshore company fully controlled by a fund, often used for tax-efficient access to certain investments.
Tactical strategy: An investment approach that adjusts portfolio allocations based on short-term market opportunities or risks.
Portfolio diversifier: An asset or investment that helps reduce overall portfolio risk by behaving differently from other holdings.
Dividend yield: Annual dividends paid by an investment divided by its current price, expressed as a percentage.
Assets under management (AUM): The total market value of investments managed by a fund or firm on behalf of clients.
Liquidation: The process of selling all holdings in a particular asset or fund position.
13F assets: Securities reported by institutional investment managers in quarterly SEC Form 13F filings, typically covering U.S. equities.

Adam Palasciano has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft and Vanguard Total Stock Market ETF. The Motley Fool has a disclosure policy.