BEDZ: 1st Quarter 2024 Portfolio Review
Portfolio
The hotel sector is a pivotal component of the global travel and tourism industry, offering a wide array of lodging options ranging from luxurious hotels and resorts to budget-friendly accommodations and boutique hotels. Its dynamics are heavily influenced by various factors including economic conditions, evolving travel trends, technological advancements, and global events. Despite concerns about a potential economic downturn, the industry has continued to expand, fueled by a growing appetite for travel in the post-pandemic era and an uptick in corporate travel.
Winners/Losers
The standout performers in the portfolio for the quarter included TripAdvisor Inc. (TRIP), which saw an impressive +29.08% increase, Trip.com Group Ltd ADR (TCOM) with a +21.88% gain, and Hilton Worldwide Holdings Inc. (HLT) with a solid +17.23% gain.
The underperformers in the portfolio were GreenTree Hospitality Group Ltd ADR (GHG), with a -17.29% decline and removal from the portfolio, Expedia Group Inc. (EXPE) with a -9.25% decrease, and VICI Properties Inc (VICI) losing -5.21%.
Important Portfolio Trades
Over the course of the quarter, the portfolio underwent various trades, notably including the removal of BlueGreen Vacations Holdings (BVH) and Caesars Entertainment Inc (CZR). Additionally, there were several smaller tactical adjustments made to the portfolio.
New Positions
BEDZ initiated new positions in the following stocks: Hilton Grand Vacations Inc. (HGV) with 141,630 shares and RLJ Loding Trust (RLJ) with 161,934 shares.
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| RCL | ROYAL CARIBBEAN CRUISES LTD | 5.38% |
| TCOM | TRIP.COM GROUP LTD-ADR | 4.96% |
| MGM | MGM RESORTS INTERNATIONAL | 4.89% |
| RHP | RYMAN HOSPITALITY PROPERTIES | 4.78% |
| MAR | MARRIOTT INTERNATIONAL -CL A | 4.78% |
| BKNG | BOOKING HOLDINGS INC | 4.73% |
| HST | HOST HOTELS & RESORTS INC | 4.70% |
| PK | PARK HOTELS & RESORTS INC | 4.69% |
| TRIP | TRIPADVISOR INC | 4.69% |
| EXPE | EXPEDIA GROUP INC | 4.63% |
As of 3.31.2024. Cash is excluded. Subject to change.
Please see our complete Fund holdings at advisorshares.com/etfs/bedz. The holdings details are updated each market day.
Market Update
Cheers,
Definitions: The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting www.advisorshares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, distributor.
Investing involves risk including possible loss of principal. The hotels, restaurants & leisure industry is highly competitive and relies heavily on consumer spending for success. The prices of securities of companies in the industry may fluctuate widely due to general economic conditions, consumer spending and the availability of disposable income, changing consumer tastes and preferences and consumer demographics, in addition may be affected by the availability and expense of liability insurance. Legislative or regulatory changes and increased government supervision. Companies in the hotels, resorts & cruise lines sub-industry may be affected by unique supply and demand factors that do not apply to other sub-industries. Weak economic conditions in some parts of the world, changes in oil prices and currency values, political instability in some areas, and the uncertainty over how long any of these conditions could continue may have a negative impact on the lodging industry. As a result of such current economic conditions and uncertainty caused by the COVID-19 pandemic, the lodging industry may continue to experience weakened demand for occupancy in some markets.
Shares are bought and sold at market price (closing price) not NAV and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined), and do not represent the return you would receive if you traded at other times.
Holdings and allocations are subject to risks and to change.
The views in this commentary are those of the portfolio manager and may not reflect his views on the date this material is distributed or anytime thereafter. These views are intended to assist shareholders in understanding their investments and do not constitute investment advice.