YOLO: 1st Quarter 2024 Portfolio Review
Portfolio
Performance
Based on net asset value (NAV), YOLO was up +33.88% for the 1st quarter of 2024.
In Q1, the portfolio did not see any new additions, but several tactical adjustments were made. This included adding +310,000 additional shares of Cronos Group Inc. (Cron) and +530,000 additional shares of Organigram Holdings Inc. (OGI). However, positions were removed from the portfolio during this period, including Innovative Industrial Properties (IIPR) and Intercure LTD. (INCR).
Winners and Losers
For the 1st quarter of 2024, YOLO’s top holding and underlying Fund, the AdvisorShares Pure US Cannabis ETF (MSOS) had substantial growth of +42.74%. The Fund’s top holding outside of the Fund MSOS, Village Farms International Inc. (VFF) also performed well with a large gain of +62.94%. Top 5 holding Cardiol Therapeutics Inc. (CRDL) saw significant growth with an increase of +115.25%.
There were declines in some holdings. Ispire Technology Inc. (ISPR) lost -49.46%. Small position RIV Capital Inc. (RIV) declined -16.48% and Jazz Pharmaceuticals PLC. (JAZZ) saw a decrease of -2.10%.
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| MSOS | ADVISORSHARES PURE US CANN | 44.86% |
| VFF | VILLAGE FARMS INTERNATIONAL | 8.17% |
| HITI | HIGH TIDE INC | 7.12% |
| CRDL | CARDIOL THERAPEUTICS INC-A | 4.52% |
| SNDL | SNDL INC | 4.26% |
| CRON | CRONOS GROUP INC | 4.02% |
| OGI | ORGANIGRAM HOLDINGS INC | 3.69% |
| TLRY | TILRAY BRANDS INC | 3.20% |
| REFI | CHICAGO ATLANTIC REAL ESTATE | 2.70% |
| AFCG | AFC GAMMA INC | 2.58% |
As of 3.312024. Cash is not included. Subject to change.
Please see our complete Fund holdings at advisorshares.com/etfs/yolo. The holdings details are updated each market day.
International Cannabis Landscape
The worldwide cannabis market is undergoing a significant transformation as an increasing number of countries acknowledge its potential benefits, both for medical and recreational purposes. By 2024, the market is forecasted to reach nearly $61 billion in revenue, with expectations to grow to $103 billion by 2028. In Europe, where approximately 448.4 million people reside, the potential cannabis market surpasses that of the United States and Canada combined. Presently, medicinal cannabis is legally accessible in 23 European countries, with five nations having decriminalized it. Countries such as Germany, the Netherlands, and Italy have legalized medicinal cannabis, while others like Portugal and Luxembourg are either considering or in the process of implementing full recreational legalization.
In Germany, the lower house of parliament recently voted to legalize cannabis for limited recreational use after a contentious national debate about the advantages and disadvantages of easing access to cannabis. Effective April 1, 2024, adults are now allowed to grow up to three cannabis plants for personal consumption. This development is expected to establish the largest legal cannabis market in Europe, making Germany the first EU nation to establish an adult-use recreational cannabis market.
In contrast, Thailand is adopting a different strategy by introducing legislation to prohibit recreational cannabis use following its decriminalization. This change comes in response to concerns regarding the unregulated growth of cannabis shops post-decriminalization. While medical cannabis will remain available, recreational use will be strictly forbidden.
These transformations reflect a global pattern where certain countries are fully embracing recreational cannabis, while others are cautiously moving towards decriminalization or permitting medicinal use. Reasons for these shifts include the desire to eliminate illicit market activities, generate tax revenues, enhance public health, and address the social implications of cannabis prohibition. As perceptions towards cannabis continue to evolve, more nations may join the trend towards a more lenient approach to cannabis regulation.
We want to always remind people to think about how they want to invest in the space as YOLO is designed to be fully or mostly fully invested. It’s not a fully tactical strategy. So if you want to have a more aggressive risk managed approach to investing in this space, you will want to have a plan/strategy to trade around YOLO. Regardless of the type of investor you are, we appreciate your investment and trading of YOLO as we work to grow the ETF and continue to raise awareness around the cannabis industry and its investment opportunities.
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Cheers,Past Commentary
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.
The Fund is subject to a number of risks that may affect the value of its shares. This section provides additional information about the Fund’s principal risks. The degree to which a risk applies to the Fund varies according to its investment allocation. Each investor should review the complete description of the principal risks before investing in the Fund. As with investing in other securities whose prices increase and decrease in market value, you may lose money by investing in the Fund.
Cannabis-Related Company Risk. Cannabis-related companies are subject to various laws and regulations that may differ at the state/local and federal level. These laws and regulations may (i) significantly affect a cannabis-related company’s ability to secure financing, (ii) impact the market for marijuana industry sales and services, and (iii) set limitations on marijuana use, production, transportation, and storage. Cannabis-related companies may also be required to secure permits and authorizations from government agencies to cultivate or research marijuana. In addition, cannabis-related companies are subject to the risks associated with the greater agricultural industry, including changes to or trends that affect commodity prices, labor costs, weather conditions, and laws and regulations related to environmental protection, health and safety. Cannabis-related companies may also be subject to risks associated with the biotechnology and pharmaceutical industries. These risks include increased government regulation, the use and enforcement of intellectual property rights and patents, technological change and obsolescence, product liability lawsuits, and the risk that research and development may not necessarily lead to commercially successful products.
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 any time thereafter. These views are intended to assist shareholders in understanding their investments and do not constitute investment advice.