Investment Firm Nicholas Hoffman & Co. Deploys Over $100 Million into Ultra-Short Treasury ETF
In a notable portfolio adjustment, investment advisory firm Nicholas Hoffman & Company has allocated over $100 million to a short-term Treasury fund, according to a filing with the Securities and Exchange Commission (SEC). The move highlights a growing focus on high-quality liquidity amidst ongoing economic uncertainty.
The firm purchased 1,411,985 shares of the Vanguard 0-3 Month Treasury Bill ETF (NASDAQ:VBIL) in the latest quarter, a transaction valued at approximately $106.6 million based on average pricing. This stake now constitutes about 3.15% of the firm's total 13F-reported assets under management.
The VBIL ETF tracks an index of U.S. Treasury bills with maturities of three months or less. With an expense ratio of just 0.06% and a recent 30-day SEC yield hovering near 3.6%, the fund is designed as a capital preservation tool that offers investors a return superior to traditional cash holdings, with minimal interest rate and credit risk.
Analysts view the purchase not as a defensive retreat but as a tactical allocation. Nicholas Hoffman & Company's portfolio remains heavily weighted toward equities, including broad-market ETFs and a significant holding in Berkshire Hathaway. The addition of a short-duration Treasury position appears to be less about hiding from market risk and more about maintaining strategic flexibility—keeping "dry powder" that earns a yield while awaiting future investment opportunities.
"In today's environment, liquidity itself is an asset," said market strategist Eleanor Vance. "A move like this isn't a bearish bet. It's a prudent way to park capital at a reasonable yield without sacrificing the ability to pivot quickly. It speaks to a disciplined, patient strategy."
The trade coincides with a period of investor caution regarding the Federal Reserve's interest rate path. Short-term Treasury ETFs have seen sustained inflows as both institutions and individuals seek shelter in government-backed securities that still offer attractive yields compared to recent history.
Investor Reactions: A Mix of Pragmatism and Skepticism
Michael Rios, Portfolio Manager at Clearwater Capital: "This is standard treasury management at scale. For a firm of their size, having a 3% allocation in a highly liquid, near-cash vehicle is about operational efficiency and risk management. It's a smart, unsexy move."
David Chen, Independent Financial Advisor: "It's a clear signal that even seasoned players see limited upside and heightened volatility in the near term. They're getting paid to wait. I've been advising my clients to increase their own short-term Treasury allocations for months."
Sarah Fitzpatrick, Editor at 'The Macro View' newsletter: "A $100 million 'parking spot'? This is a stunning admission of a lack of conviction. While they're clipping a sub-4% coupon, they're missing the real growth stories. It's capital preservation masquerading as strategy, typical of the inertia that sets in after a long bull market."
Arjun Mehta, Retail Investor: "It's reassuring to see professionals prioritize liquidity and safety. In my own portfolio, I've used similar ETFs as a buffer. It makes me feel more secure knowing a portion of my money is stable and accessible, especially with headlines being so unpredictable."
As of the latest data, VBIL shares traded at $75.64. The fund's performance over the past year has been stable, reflecting its design objective as a principal preservation fund rather than a growth engine.