(BKCH) SABRETOOTH ETF

BKCH

Overview

The investment thesis for the AdvisorShares Sabretooth ETF (Ticker: BKCH) holds that companies utilizing cloud computing and digital companies that implement emerging technology like blockchain may realize increased profitability and appreciation in stock prices over an extended time horizon. BKCH invests in U.S.-listed equities and American depositary receipts of such digital and cloud companies and does not invest in cryptocurrency. The portfolio manager views these areas as the future of technological record-keeping and information exchanging which can deliver a durable investment theme for growth equity opportunities and long-term performance.

Cloud computing has helped fuel a technological expansion by enhancing global accessibility and unveiling new ways to grow businesses, which has led to other advancements that seek to improve efficiency and security. Through the delivery of computing services via the internet – from servers, storage, databases, networking and software – cloud-centric companies provide on-demand access that drives both businesses and consumers in today’s modern world. The emergence of select digital technology provides a natural and evolving complement to cloud computing. Such technological advancements include digital ledger and blockchain.

Blockchain conceptually represents a decentralized digital ledger where information is compiled independently by a number of third parties into a secured, stored block of information that’s incapable of alteration. The term blockchain is generally associated with crypto assets, such as bitcoin, but the portfolio manager believes the application of blockchain transcends cryptocurrency and can serve multiple spaces as this emerging technology can allow companies to reduce costs in multiple areas, improve efficiencies and greatly enhance information security since data is not stored on a centralized server. Such innovation can potentially bring immediate impacts in the financial and technology sectors as well as future growth opportunities in healthcare and other sectors.

There can be no assurance that digital technology will affect the primary lines of business of the companies in the Fund’s portfolio to have a positive impact on a company’s financial condition.



Symbol Exchange Inception Date CUSIP Indicative Value
BKCH Nasdaq 02/06/2019 00768Y511 BKCH.IV
<strong>Why Invest in BKCH?</strong>
  • Long-Term Growth Potential – Cloud equities have continued to become the growth engine of modern technology with companies worldwide investing in and using the space. These stocks have consistently increased their market cap among broad-based indexes due to attractive fundamentals and company management. Equities of digital companies implementing blockchain can advance commerce forward, reduce their costs and potentially outperform broad market benchmarks. Blockchain represents a technology that cuts across multiple sectors with a very diverse spectrum of companies benefitting from its uses. BKCH’s portfolio manager believes that combining cutting edge securities with such growth dynamics can become long-term drivers of equity markets.
  • Ability to Diversify Among Leaders – The strong appetite and non-saturated market for digital and cloud expansion that exist within BKCH’s investable universe creates a natural diversifying quality for the ETF’s portfolio. Possible company acquisitions by underlying holdings within BKCH may exemplify how owning outliers can potentially return more than originally assumed. BKCH seeks to fill the void for those investors who don’t want to rely on equity selection therefore minimizing company specific risk while maintaining an investment view on the industries within its universe.
  • Exposure to Future Leaders – Before digital and cloud became market hotbeds, and other terms like FANG became apropos, there were the Four Horsemen (Microsoft, Intel, Dell and Cisco), and long prior to that came the Nifty Fifty. Inevitably, if history provides any guide, new companies will emerge to assume the role of market leaders. Whether that evolves in months, years or decades, this actively managed ETF’s investment process is designed to identify these new constituents and seeks to maintain their performance within the portfolio. The actively managed aspect of BKCH allows for evolution and relevance, as opposed to the constraints and staleness that can follow index-based ETFs.
<strong>Where Does BKCH Fit in a Traditional Portfolio?</strong>

BKCH seeks to provide a high-growth complement or satellite equity holding to a broad-based equity allocation, while mitigating specific company risk for investors seeking efficient exposure to market leaders utilizing cloud computing and emerging digital technology.

<strong>Key Attributes</strong>
  1. Concentrated Exposure to Emerging Digital and Cloud – BKCH’s portfolio manager seeks to provide a similar return stream to the performance of leaders in both the digital and cloud computing space. With a diverse cloud space and digital having a limited pool of pure play blockchain equity opportunities, BKCH seeks to concentrate a portfolio of best of breed companies and future leaders in their respective areas.
  2. High Conviction – BKCH is designed to be nimble and offers actively managed access to a concentrated leadership of cloud-focused and blockchain-oriented, digital equity securities, which allows flexibility within its portfolio – unlike passive ETFs that are restricted by following, and automatically owning everything in, an index.
  3. Disruptive Innovators –The stocks actively selected for BKCH have demonstrated attractive growth and earnings potential as well as leadership characteristics in their respective industries. By investing in such innovators and similar-type emerging companies, BKCH’s portfolio seeks to maintain both a leadership and a leading-edge role within a technological revolution.
  4. Exclusive Access to Sought-After Investment Theme – BKCH delivers efficient access for investors seeking exposure to the cloud and emerging digital segments of the equity market along with added diversification benefits. Investors could otherwise face barriers from higher share prices if individually purchasing many of these company stocks as well as a limited number of pure plays especially among blockchain equities.
<strong>About the Portfolio Manager</strong>

Scott Freeze, chief investment officer of Sabretooth Advisors, LLC
Mr. Freeze has been involved with ETFs since entering the financial services industry in the 1990s and brings over 25 years of financial services industry experience on both the buy side and sell side. Prior to joining Sabretooth, he founded Street One Financial in 2009 to serve as an Alternative Liquidity provider in the ETF space. He brings a wealth of product knowledge within in the Registered Investment Advisor channel as well as in the Authorized Participant and Market Maker space in leading Sabretooth. He has frequented as a guest on CNBC, Bloomberg, Fox Business and has been often printed in Wall Street Journal, New York Times and various industry outlets.

Fund

Price History

As of 9/20/2019

NAV $26.02 Closing Price $0.00
Change $-0.14 Close Change $-26.16
Shares Outstanding 50,000.00 Volume 0
4PM Bid/Offer Midpoint $26.00 Premium Discount $-0.02
Assets Under Management $1,300,816.48

Premium/Discount Historical Data | NAV Historical Data

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. A holding identified with an “MM” at the end of its name indicates it is a Money Market fund.

FUND

Performance

As of 8/31/2019

  NAV Market Price Return MSCI EAFE Index
1 Month -4.84 -4.81 -1.58
3 Months 2.95 2.99 6.87
YTD - - 18.34
1 Year - - 2.92
3 Years - - 12.70
5 Years - - 10.11
Since Inception (7/20/2010, Annualized) 6.30 6.37 8.43

As of 6/30/2019

NAV Market Price Return MSCI EAFE Index
1 Month 4.75 4.77 7.05
3 Months 2.30 2.62 4.30
YTD - - 18.54
1 Year - - 10.42
3 Years - - 14.19
5 Years - - 10.71
Since Inception (7/20/2010, Annualized) 8.16 8.00 8.61

Performance data quoted represents past performance and is no guarantee of future results. All Fund data and performance data quoted is believed to be accurate, and unless otherwise stated, is sourced from the Fund administrator, the Advisor’s or Sub-Advisor’s proprietary data, and Morningstar. 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.

Top Ten

Holdings

As of 9/20/2019

Date Account Symbol Stock Ticker Security Number Security Shares Price Market Value Weight % Asset Group
09/20/2019 BKCH MA 57636Q104 MASTERCARD INC - A 282.00 271.17 76,469.94 5.88% S 1
BKCH V 92826C839 VISA INC-CLASS A SHARES 424.00 174.06 73,801.44 5.67% S 1
BKCH AYX 02156B103 ALTERYX INC - CLASS A 554.00 117.96 65,349.84 5.02% S 1
BKCH AMZN 023135106 AMAZON.COM INC 32.00 1,794.16 57,413.12 4.41% S 1
BKCH STNE G85158106 STONECO LTD-A 1,512.00 36.03 54,477.36 4.19% FS 1
BKCH MDB 60937P106 MONGODB INC 403.00 131.82 53,123.46 4.08% S 1
BKCH OKTA 679295105 OKTA INC 479.00 106.16 50,850.64 3.91% S 1
BKCH MSFT 594918104 MICROSOFT CORP 364.00 139.44 50,756.16 3.90% S 1
BKCH EQIX 29444U700 EQUINIX INC 88.00 566.45 49,847.60 3.83% S 1
BKCH NOW 81762P102 SERVICENOW INC 170.00 271.17 46,098.90 3.54% S 1
BKCH NDAQ 631103108 NASDAQ INC 445.00 100.68 44,802.60 3.44% S 1
BKCH PYPL 70450Y103 PAYPAL HOLDINGS INC 423.00 104.64 44,262.72 3.40% S 1
BKCH ZEN 98936J101 ZENDESK INC 570.00 77.49 44,169.30 3.40% S 1
BKCH AXP 025816109 AMERICAN EXPRESS CO 377.00 116.80 44,033.60 3.39% S 1
BKCH ADBE 00724F101 ADOBE INC 155.00 277.91 43,076.05 3.31% S 1
BKCH GOOG 02079K107 ALPHABET INC-CL C 34.00 1,229.93 41,817.62 3.21% S 1
BKCH ANET 040413106 ARISTA NETWORKS INC 174.00 240.06 41,770.44 3.21% S 1
BKCH BABA 01609W102 ALIBABA GROUP HOLDING-SP ADR 228.00 182.51 41,612.28 3.20% FS 1
BKCH TWLO 90138F102 TWILIO INC - A 344.00 114.22 39,291.68 3.02% S 1
BKCH CRM 79466L302 SALESFORCE.COM INC 246.00 155.20 38,179.20 2.94% S 1
BKCH VMW 928563402 VMWARE INC-CLASS A 250.00 150.78 37,695.00 2.90% S 1
BKCH SPLK 848637104 SPLUNK INC 302.00 121.60 36,723.20 2.82% S 1
BKCH WDAY 98138H101 WORKDAY INC-CLASS A 206.00 174.97 36,043.82 2.77% S 1
BKCH FFIV 315616102 F5 NETWORKS INC 240.00 137.14 32,913.60 2.53% S 1
BKCH SQ 852234103 SQUARE INC - A 536.00 57.85 31,007.60 2.38% S 1
BKCH NEWR 64829B100 NEW RELIC INC 369.00 63.22 23,328.18 1.79% S 1
BKCH NTNX 67059N108 NUTANIX INC - A 742.00 26.16 19,410.72 1.49% S 1
BKCH FB 30303M102 FACEBOOK INC-CLASS A 100.00 189.93 18,993.00 1.46% S 1
BKCH CRWD 22788C105 CROWDSTRIKE HOLDINGS INC - A 215.00 66.97 14,398.55 1.11% S 1
BKCH CASH 49,068.64 100.00 49,068.64 3.77% CA 0

FUND

Characteristics

As of 08/31/2019

BKCH Sector Allocation

BKCH Blockchain vs Cloud

BKCH Market Cap

FUND

Fees & Expenses

Management Fee 0.60%
Other Expenses 0.37%
Gross Expenses Ratio 0.97%
Fee Waver and/or Expenses Reimbursement -0.12%
Net Expense Ratio 0.85%*

 

  • 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 the Fund’s website at www.AdvisorShares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, Distributor.

    Investing involves risk including possible loss of principal. Computer software/services companies can be significantly affected by competitive pressures, aggressive pricing, technological developments, changing domestic demand, the ability to attract and retain skilled employees and availability and price of components. Many computer software/services companies rely on a combination of patents, copyrights, trademarks and trade secret laws to establish and protect their proprietary rights in their products and technologies. There can be no assurance that the steps taken by computer software/services companies to protect their proprietary rights will be adequate to prevent misappropriation of their technology or that competitors will not independently develop technologies that are substantially equivalent or superior to such companies’ technology. Stocks of technology companies and companies that rely heavily on technology, especially those of smaller, less-seasoned companies, tend to be more volatile than the overall market. Additionally, companies in the technology sector may face dramatic and often unpredictable changes in growth rates and competition for the services of qualified personnel. For other risks specific to the fund please read the prospectus.

    Shares are bought and sold at market price not net asset value (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.