BEDZ: 2nd Quarter 2021 Portfolio Manager Review
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns less than one year are not annualized. For the fund’s most recent standardized and month-end performance, please click www.advisorshares.com/etfs/bedz.
The AdvisorShares Hotel (BEDZ) launched April 20, 2021. Through June 30, it has less than 3 months of performance with a gain of 0.99% on market price and 0.81% on its net assets value (NAV).
While the Fund’s overall performance is largely tied to the success of the hotel industry, we plan for relative outperformance through good trading techniques and successful individual security selection among hotels and related areas.
In future quarterly updates, I will discuss the new positions added to the BEDZ portfolio. While we did a couple new stocks to the Fund since its launch, there aren’t worth mentioning when the Fund is only about 40 days old as of June 30th. All the positions are new!
Contributors / Detractors:
While the Fund has only been launched a short time, a few positions stood out. Target Hospitality Corp. (NASDAQ: TH) gained over 47% in the 2ns quarter. Red Rock Resorts, Inc (NASDAQ: RRR) gained over 30%. Full House Resorts (NASDAQ: FLL) was up more than 16%, while VICI Properties (NYSE: VICI), the REIT that owns Caesars Palace gained 11%. I’ve stated publicly that for now, the Fund is weighted more towards leisure travel than business. That’s the beauty of active management as to compared to an index is an area lie this.
The detractors were only small holdings in the Fund. TripAdvisor (NASDAQ: TRIP) was down over 25%. Chinese tour operator Tuniu Corp (NASDAQ: TOUR) lost over 31% in the quarter, and has since been removed from the Fund. Airbnb Inc. (NASDAQ: ABNB) lost over 18% in the 2nd quarter.
Investors in a focused, industry related Fund should have a very long-term focus. We remain bullish about future hotel and travel growth as the world continues to slowly recover from COVID-19 and its new variants.
|Ticker||Security Description||Portfolio Weight %|
|RRR||RED ROCK RESORTS INC-CLASS A||5.75%|
|BYD||BOYD GAMING CORP||5.62%|
|VICI||VICI PROPERTIES INC||5.11%|
|CNTY||CENTURY CASINOS INC||5.06%|
|FLL||FULL HOUSE RESORTS INC||5.02%|
|WH||WYNDHAM HOTELS & RESORTS INC||4.76%|
|HGV||HILTON GRAND VACATIONS INC||4.70%|
|GLPI||GAMING AND LEISURE PROPERTIE||4.63%|
|HLT||HILTON WORLDWIDE HOLDINGS IN||4.58%|
|MAR||MARRIOTT INTERNATIONAL -CL A||4.02%|
As of 6.30.2021. Cash is not included.
Please see our complete Fund holdings at advisorshares.com/etfs/bedz. The holdings details are updated each market day.