LETB: 2nd Quarter 2022 Portfolio Review
Since the launch in February 2022, the AdvisorShares Let Bob AI Powered Momentum ETF (LETB) has endured an incredibly difficult trading environment for the broad equity markets. From its inception through the end of the second quarter of 2022, while LETB performance was negative, the fund still outperformed both the S&P 500 and the Russell 3000 indexes by more than double – LETB returned -7.12% (market); Russell 3000 returned -16.37%; and S&P 500 returned -15.73%.
The fund has experience challenging times since its launch. The last time the S&P 500 fell 20% in the first half of the year was February 1970. We also witnessed record-setting interest rate hikes in both May and June 2022.The Federal Reserve is forecasting a 175 basis point (1.75%) increase to the Fed Funds rate by end of this year. Current geopolitical concerns and high inflation data has created a risk off sentiment in most areas of the market. Financial conditions contracted, weighing on business and consumer confidence, causing growth fears, and sending stocks into bear-market territory. Additionally, stocks and bonds posted rare back-to-back quarterly declines, something that has only occurred three times in the last 100 years.
|Ticker||Security Description||Portfolio Weight %|
|BHVN||BIOHAVEN PHARMACEUTICAL HOLD||1.38%|
|DELL||DELL TECHNOLOGIES -C||1.24%|
|AZPN||ASPEN TECHNOLOGY INC||1.22%|
|ZM||ZOOM VIDEO COMMUNICATIONS-A||1.21%|
|PPC||PILGRIM’S PRIDE CORP||0.19%|
As of 06.30.2022. Cash is not included. Subject to change.
Preservation of capital will continue to be our main focus for LETB. At the start of Q1 2022, the portfolio had 100% cash exposure – something unprecedented. We will continue to follow the AI (artificial intelligence) model and deploy new capital when the model finds an ideal risk/reward scenario based on market conditions. Because of rising inflation, aggressive monetary policy by the Fed, fears of increased borrowing costs, we believe are currently in a risk off market environment.
Let Bob, LLC
AdvisorShares Let Bob AI Powered Momentum ETF (LETB) Portfolio Manager