LETB: 2nd 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/letb.

Performance 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%.

Market Review

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.

Top Holdings

Ticker Security Description Portfolio Weight %
BHVN BIOHAVEN PHARMACEUTICAL HOLD 1.38%
NPTN NEOPHOTONICS CORP 1.37%
CCXI CHEMOCENTRYX INC 1.34%
SNPS SYNOPSYS INC 1.29%
DELL DELL TECHNOLOGIES -C 1.24%
AZPN ASPEN TECHNOLOGY INC 1.22%
ZM ZOOM VIDEO COMMUNICATIONS-A 1.21%
EOLS EVOLUS INC 0.82%
CAL CALERES INC 0.77%
PPC PILGRIM’S PRIDE CORP 0.19%

As of 06.30.2022. Cash is not included. Subject to change.

Outlook

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.

Respectfully,

Anthony Buchanan
Let Bob, LLC
AdvisorShares Let Bob AI Powered Momentum ETF (LETB) Portfolio Manager

Past Commentary

 

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. The Advisor continuously evaluates the Fund’s holdings, purchases and sales with a goal of achieving its investment objective, which is not guaranteed, and judgments about the markets, the economy, or companies may not anticipate actual market movements, economic conditions, or company performance. Security prices of small and mid-cap companies may be more volatile than those of larger companies and therefore the Fund’s share price may be more volatile than those of funds that invest a larger percentage of their assets in securities issued by larger-cap companies. 

Model and Data Risk: When models and data prove to be incorrect or incomplete, any decisions made in reliance thereon expose the Fund to potential risks. In addition, the use of predictive models has inherent risk. Because predictive models are usually constructed based on historical data supplied by third parties, the success of relying on such models may depend heavily on the accuracy and reliability of the supplied historical data. The Fund may experience relatively high portfolio turnover, which may result in increased transaction costs and performance that is lower than expected.

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.