BEDZ: 1st Quarter 2022 Portfolio 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.

Performance

For the period of January 1 through March 31, 2022, the AdvisorShares Hotel ETF (BEDZ) gained 0.14% on its net asset value (NAV) but lost -0.08% on its market price – both quite a bit better than the S&P 500 that declined -4.60% for the quarter.  The Fund launched with an inception date of April 20, 2021. In the slightly over 11-month period since its launch, the Fund has returned 9.16% on its NAV and 9.02% on its market price. It’s quite obvious that employment and inflation concerns continue to weigh on the travel industry even while COVID constraints are lifting.

Portfolio

New Positions

No new positions were added during the quarter.

Contributors / Detractors

What is now the top holding, Target Hospitality (NASDAQ: TH) gained over 68% in the quarter. Top 5 holding Golden Entertainment, Inc (NASDAQ: GDEN) gained 14.92%. Regional casino operator Full House Resorts (Nasdaq: FLL) was up over 35%. Monarch Casino & Resorts (NASDAQ: MCRI) gained 17.96%.

Bluegreen Vacations Holding Corporation (NYSE: BVH) was a big contributor last quarter, but down (15.75%) this period.  Another big gainer last quarter, casino operator Full House Resorts (Nasdaq: FLL) lost more than 20%. Red Rock Resorts (NASDAQ: RRR) and Penn National Gaming (NASDAQ: PENN) also dragged on the portfolio’s performance.

The Fund’s overall performance is largely tied to the success of the hotel industry, we plan for relative outperformance through trading and security selection within hotels and related areas.

Top Holdings

Ticker Security Description Portfolio Weight %
TH TARGET HOSPITALITY CORP 7.72%
GDEN GOLDEN ENTERTAINMENT INC 7.45%
BVH BLUEGREEN VACATIONS HOLDING 7.18%
MCRI MONARCH CASINO & RESORT INC 5.92%
CHH CHOICE HOTELS INTL INC 5.72%
MAR MARRIOTT INTERNATIONAL -CL A 5.20%
BYD BOYD GAMING CORP 5.17%
GLPI GAMING AND LEISURE PROPERTIE 4.98%
WH WYNDHAM HOTELS & RESORTS INC 4.73%
VICI VICI PROPERTIES INC 4.39%

As of 03.31.2022. 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.

 

Cheers,

Dan Ahrens
AdvisorShares
AdvisorShares Hotel ETF (BEDZ) Portfolio Manager

 

Past Manager 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, 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.