LETB: 3rd Quarter 2022 Portfolio Review
The AdvisorShares Let Bob AI Powered Momentum ETF (LETB) continues to outperform the broad market. For the 3rd quarter of 2022, LETB returned -2.43% vs. -4.46% for the Russell 3000 Index and -4.88% for the S&P 500 Index. Since its inception in Feb. 2022, LETB has returned -9.36% vs. -20.11% and -19.84% for the Russell 3000 and the S&P 500, respectively. LETB is displaying its full capabilities navigating current market conditions, utilizing low equity exposure or a move to cash for additional risk management in downward trending markets.
After having it worst start to a calendar year since, 2002, the S&P 500 continued its downward trend during the 3rd quarter. Inflation, rising interest rates, Russia’s ongoing war in Ukraine, and the European energy crisis are some of the primary factors driving market weakness. Additionally, markets are witnessing the highest federal funds rate in more than a decade. In 2022, the Federal Reserve raised interest rates five times – marking the most interest hikes in a single year since the 1980’s.
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As of 09.30.2022. Subject to change.
During the 3rd quarter, 9 stocks were held in the portfolio before being converting to 100% cash by the end of the quarter: Clarus Corporation (CLAR); Discover Financial Services (DFS); The Buckle, Inc. (BKE); G-III Apparel Group, Ltd. (GIII); Foot Locker, Inc. (FL); Citizens Financial Group, Inc. (CFG); OneSpaWorld Holdings Ltd (OSW); Monday.com Ltd (MNDY); The Williams Companies, Inc. (WMB).
We are still in a risk off environment with Federal Reserve Chair Jerome Powell stating higher interest rates will lead to a “sustained period of below trend growth that will also bring some pain to households & businesses.” We remain optimistic that LETB and its strategy will continue to outperform the market.
Let Bob, LLC
AdvisorShares Let Bob AI Powered Momentum ETF (LETB) Portfolio Manager
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.