YOLO: 4th Quarter 2024 Portfolio Review
Portfolio
PERFORMANCE
YOLO faced a challenging fourth quarter in 2024, declining -26.20% (NAV) | -25.77% (market). The fund ended the year down -18.76% (NAV) | -18.15% (market), reflecting ongoing volatility in the cannabis sector amid regulatory and market uncertainties.
PORTFOLIO
Several adjustments were made in Q4 to refine the portfolio. New positions included:
- Agrify Corp. (AGFY) – 11,060 shares in a provider of advanced cultivation, extraction, and technology solutions.
- Flora Growth Corp. (FLGC) – 70,420 shares in a cannabis distributor with an international footprint spanning the U.S., U.K., Germany, and South America.
- WM Technology Inc. (MAPS) – 301,755 shares, reentering the portfolio as the company continues to adapt to shifting industry dynamics.
Smaller tactical adjustments were made, though no positions were fully exited.
On December 19, 2024, Cansortium Inc. (TIUM.U) acquired RIV Capital Inc. (RIV). As part of the deal, RIV Capital shareholders received 1.245 common shares of Cansortium per RIV share held. This acquisition expands Cansortium’s presence to 42 stores in New York’s adult-use market, strengthening its footprint through RIV’s Etain brand, which was acquired in 2022.
WINNERS AND LOSERS
Despite overall market headwinds, several stocks delivered strong gains:
- High Tide Inc. (HITI) soared 49.89%.
- Jazz Pharmaceuticals (JAZZ) posted a 10.54% increase.
- Chicago Atlantic Real Estate Finance Inc. (REFI) climbed 3.16%.
On the downside, some holdings struggled:
- Cardiol Therapeutics Inc. (CRDL) fell 35.40%.
- Village Farms International Inc. (VFF) declined 17.10%.
- SNDL Inc. (SNDL) dropped 13.11%.
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| MSOS | ADVISORSHARES PURE US CANN | 34.84% |
| HITI | HIGH TIDE INC | 14.25% |
| VFF | VILLAGE FARMS INTERNATIONAL | 8.23% |
| SNDL | SNDL INC | 6.66% |
| CRON | CRONOS GROUP INC | 4.35% |
| JAZZ | JAZZ PHARMACEUTICALS PLC | 4.11% |
| REFI | CHICAGO ATLANTIC REAL ESTATE | 3.78% |
| OGI | ORGANIGRAM HOLDINGS INC | 3.68% |
| CRDL | CARDIOL THERAPEUTICS INC-A | 3.61% |
| AFCG | ADVANCED FLOWER CAPITAL INC | 3.07% |
As of 12.31.2024. Cash is not included. Holdings subject to change.
Please see our complete Fund holdings at advisorshares.com/etfs/yolo. The holdings details are updated each market day.
Cannabis Landscape
The cannabis industry faced mixed fortunes in Q4, with regulatory developments both advancing and stalling.
U.S. MARKET
Several setbacks hindered progress:
- Florida’s “Yes on 3” ballot measure to legalize adult-use cannabis failed, delaying access in one of the country’s most lucrative potential markets.
- North and South Dakota voters also rejected legalization measures.
- The Biden administration did not deliver on cannabis reform promises, and the Administrative Law Judge (ALJ) hearing on cannabis rescheduling from Schedule 1 to Schedule 3 was postponed.
However, there were some positive developments:
- Nebraska successfully passed a ballot measure legalizing medical cannabis.
- Despite delays, the rescheduling hearing could still result in a major shift in federal cannabis policy.
Over half of the U.S. population reside in states with regulated, legal cannabis markets, reinforcing the sector’s long-term growth potential.
INTERNATIONAL MARKET
Beyond North America, global legalization continues to accelerate:
- Canada, Uruguay, and Thailand already support commercial adult-use sales.
- In Germany and Malta, nonprofit organizations can legally cultivate and distribute cannabis.
- Switzerland and the Netherlands have launched pilot programs for adult-use cannabis production, while Czechia and Luxembourg have planned similar initiatives.
- Nearly 50 countries have now legalized cannabis in some form, whether for medical or recreational use.
The global legal cannabis market is projected to reach $50 billion by 2027, with a 13.7% compound annual growth rate (CAGR) since 2020. By 2030, the market could hit $57 billion1, with:
- The U.S. and Canada contributing around $46.5 billion.1
- International markets accounting for approximately $10.5 billion.1
The most significant growth is expected outside of North America, as more governments recognize cannabis’ economic and public health benefits.
As cannabis regulation evolves, governments are increasingly drawn to its potential—from generating tax revenue and curbing illegal markets to supporting public health and social justice initiatives. With shifting public perceptions and political momentum, 2025 could bring further breakthroughs in legalization and industry growth.
1. Cannabis Business Plan, Cannabis Legalization World Map: January 2025 Updated.
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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 or summary 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.