Strategist Tom Lee updated his portfolio that is trouncing the market this year

Tom Lee, Fundstrat Global Advisors
Scott Mlyn | CNBC

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Fundstrat Global Advisors founder Tom Lee is making changes to his market-beating portfolio as the fourth quarter gets underway.

Specifically, he's rebalancing the 23-stock "Granny Shots" portfolio, which chooses stocks from six different portfolios — three thematic and three tactical — with the aim of capturing the "best of the best."

The portfolio's performance is calculated on each position holding an equal weighting at the start of each quarter. Based on that, the portfolio is beating the S&P 500 by 2,470 basis points this year. However, in a "let winners ride" approach, the outperformance could be even greater.

The latest reshuffle means adding five new names, while moving six stocks out of the portfolio.