BEDZ: 3rd 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.

Commentary

For the 3rd quarter, the AdvisorShares Hotel ETF (BEDZ) gained 3.59% on its net asset value (NAV) and 3.38% on its market price. The Fund launched on April 20, 2021 and in that short period, the Fund has returned 4.43% (NAV) and 4.40% (market price) through September 30, 2021. While we are happy with positive performance, COVID and employment concerns have continued to weigh on the travel industry.

New Positions:

Bluegreen Vacations Holding Corporation (NYSE: BVH) and Golden Entertainment, Inc (NASDAQ: GDEN) were both added to the portfolio during the quarter and are now top holdings. BVH in particular was a very successful trade and ended the quarter as the Fund’s top performer. Travel + Leisure Co (NYSE: TNL) and Penn National Gaming (NASDAQ: PENN) were also added during the quarter.

Contributors / Detractors:

Winners outnumbered losers in the quarter, and leisure and vacation-oriented stocks led the way. The portfolio’s stocks that were down during the quarter were quite varied and seemed company-specific.

Investors in a focused travel related Fund should have a long-term focus. 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.

Top Holdings

Ticker Security Description Portfolio Weight %
BYD BOYD GAMING CORP 5.09%
VGR VECTOR GROUP LTD 4.64%
FLL FULL HOUSE RESORTS INC 4.47%
RICK RCI HOSPITALITY HOLDINGS INC 4.46%
RGR STURM RUGER & CO INC 4.43%
MCRI MONARCH CASINO & RESORT INC 4.40%
GLPI GAMING AND LEISURE PROPERTIE 4.30%
JACK JACK IN THE BOX INC 3.87%
VICI VICI PROPERTIES INC 3.80%
CZR CAESARS ENTERTAINMENT INC 3.54%

As of 09.30.2021. 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.