BEDZ: 2nd Quarter 2024 Portfolio Review
Portfolio
In Q2 of 2024, BEDZ’s performance was unfavorable, with its net asset value (NAV) dropping by 6.66%. Despite this, Its Year-to-Date performance remained positive, up by 1.70%. It fell short of the S&P 500’s gains of 4.28% over the same period. BEDZ has earned a Four-Star Overall Morningstar Rating in consumer cyclical category, based on risk-adjusted return out of 48 funds in the category as of June 30th, 2024.
Portfolio
The hotel sector plays a crucial role in the global travel and tourism industry, providing a diverse range of lodging options from high-end hotels and resorts to affordable accommodations and boutique hotels. Various factors such as economic conditions, changing travel trends, technological advancements, and global events significantly impact the sector. Despite its volatility, the hotel sector can offer attractive investment opportunities, especially during periods of economic growth and increased travel demand.
Winners/Losers
The standout performers in the portfolio for the quarter included Trip.com Group Ltd ADR (TCOM), which saw an 7.09% increase, Norwegian Cruise Line Holdings Ltd. (NCLH) up 14.22%, and Royal Caribbean Cruises Ltd. (RCL) with solid 14.69% gain.
The primary underperformers in the portfolio included Tripadvisor Inc. (TRIP), with a significant 35.91% decline, Boyd Gaming Corp. (BYD) and its 17.89% decrease, and RLJ Lodging Trust (RLJ) down 19.97%.
Important Portfolio Trades
Throughout the quarter, the portfolio underwent various trades, notably including the removal of Choice Hotels International Inc. (CHH), Hilton Grand Vacations Inc. (HGV), H World Group Ltd. ADR (HTHT), Monarch Casino & Resort Inc. (MCRI), and RLJ Loding Trust (RLJ). Additionally, there were several smaller tactical adjustments made to the portfolio.
New Positions
BEDZ initiated new positions in the following stocks: Xenia Hotels & Resorts Inc. (XHR) with 11,780 shares, Norwegian Cruise Line Holdings Ltd. (NCLH) with 9,000 shares, and Playa Hotels & Resorts with 12,900 shares.
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| TH | TARGET HOSPITALITY CORP | 5.84% |
| EXPE | EXPEDIA GROUP INC | 5.67% |
| BKNG | BOOKING HOLDINGS INC | 5.52% |
| TCOM | TRIP.COM GROUP LTD-ADR | 5.43% |
| RCL | ROYAL CARIBBEAN CRUISES LTD | 5.20% |
| NCLH | NORWEGIAN CRUISE LINE HOLDIN | 5.02% |
| XHR | XENIA HOTELS & RESORTS INC | 5.01% |
| IHG | INTERCONTINENTAL HOTELS-ADR | 4.97% |
| APLE | APPLE HOSPITALITY REIT INC | 4.51% |
| MGM | MGM RESORTS INTERNATIONAL | 4.49% |
As of 6.30.2024. 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,
Past Commentary
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 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.
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.