EATZ: 4th Quarter 2021 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/eatz.
For the final quarter of 2021, October 1 through December 31, 2021, the AdvisorShares Restaurant ETF (EATZ) gained 1.85% on its net asset value (NAV) and 1.76% on its market price. The Fund just launched with an inception date of April 20, 2021, and since that time the Fund has had a small loss of -4.61% on its net asset value (NAV) and -4.59% on its market price. COVID has lingered on and employment concerns have weighed on the restaurant industry. Considering these negatives hurting the restaurant business worldwide, I personally feel that things should improve and these stocks could be excellent buys at current levels.
While the Fund’s overall performance is largely tied to the success of the restaurant industry, we aim for relative outperformance through good individual security selection and successful trading.
Only one new addition to the portfolio during the quarter: Sweetgreen, Inc. (NYSE: SG). Of course, over the three-month period, we did add on to multiple positions while trimming others that were less attractive.
Contributors / Detractors:
During this continued difficult time for the industry, the losers continued to outnumber winners. However, some of our largest holdings were among the best contributors. Del Taco (NASDAQ: TACO) gained over 43% on buyout news. Large holding RCI Hospitality (NNASDAQ: RICK was up 13.75%. Domino’s Pizza (NYSE: DPZ) gained over 18%, while Papa Johns was also a gainer. We just added One Group Hospitality (NASDAQ: STKS) at the end of September and it gained 17.96% for the quarter.
Losers were mostly from big chains or technology-based. Most were not large holdings. DoorDash and Just Eat Takeaway were down; and Bloomin Brands, Brinker, and Cheesecake Factory were among the most significant negatives.
|Ticker||Security Description||Portfolio Weight %|
|RICK||RCI HOSPITALITY HOLDINGS INC||7.15%|
|PZZA||PAPA JOHN’S INTL INC||5.77%|
|DPZ||DOMINO’S PIZZA INC||5.69%|
|TACO||DEL TACO RESTAURANTS INC||5.42%|
|PLAY||DAVE & BUSTER’S ENTERTAINMEN||4.99%|
|STKS||ONE GROUP HOSPITALITY INC/TH||4.71%|
|FRGI||FIESTA RESTAURANT GROUP||4.14%|
|DRI||DARDEN RESTAURANTS INC||4.10%|
|BLMN||BLOOMIN’ BRANDS INC||4.01%|
As of 12.31.2021. Cash is not included. Subject to change.
Please see our complete Fund holdings at advisorshares.com/etfs/eatz. The holdings details are updated each market day.
Past Manager Commentary