Species' functional traits may help determine rates of carbon gain, with physiological and morphological trade-offs relating to shade tolerance affecting photosynthetic capacity and carbon allocation strategies. However, few studies have examined these trade-offs from the perspective of whole-plant biomass gain of adult trees. We compared tree-level annual diameter increments and annual above-ground biomass (AGB) increments in eight long-term plots in hyper-diverse northwest Amazonia to wood density (ρ; a proxy for shade tolerance), whilst also controlling for resource supply (light and soil fertility). ρ and annual diameter increment were negatively related, confirming expected differences in allocation associated with shade tolerance, such that light-demanding species allocate a greater proportion of carbon to diameter gain at the expense of woody tissue density. However, contrary to expectations, we found a positive relationship between ρ and annual AGB increment in more fertile sites, although AGB gain did not differ significantly with ρ class on low-fertility sites. Whole-plant carbon gain may be greater in shade-tolerant species due to higher total leaf area, despite lower leaf-level carbon assimilation rates. Alternatively, rates of carbon loss may be higher in more light-demanding species: higher rates of litterfall, respiration or allocation to roots, are all plausible mechanisms. However, the relationships between ρ and AGB and diameter increments were weak; resource availability always exerted a stronger influence on tree growth rates. © 2008 Springer-Verlag.