MSOS: 4th Quarter 2021 Portfolio Review
For another calendar quarter, cannabis stocks overall have been difficult. Cannabis stocks hit price highs on about February 10th and the drawdown since that time has been painful.
For the 4th quarter, MSOS dropped -19.09% on its net asset value (NAV) and -18.62% on its market price. For the full calendar year 2021, the Fund’s one year return is -29.52% on its NAV and -29.65% on market price. Obviously, the losses since the February 2021 highs have been much greater.
AdvisorShares Pure US Cannabis ETF (NYSE: MSOS) launched on September 2, 2020 and is still less than 18 months old. Despite negative performance, the Fund’s assets have held fairly steady and outstanding shares have continued to grow, finishing 2021 with over $1.1 billion in assets. I believe this shows that investors have patience and believe in the future potential of U.S. cannabis. Since the Fund has continued to get new investor cash in-flows, we’ve continued to buy shares. Significant losses since last February would be very painful without cash flows. With the Fund receiving in-flows, while losses are still painful, we’ve had the ability to buy underlying shares at lower prices. We add shares at times that we believe are advantageous and have lowered the cost basis of our highest conviction positions. We hold very high concentrations in the top 5 of our largest positions and feel that we have the Fund prepped for the bounce back that we think is on the way in U.S. cannabis stocks.
During the quarter, MSOS added just one position of AFC Gamma (NASDAQ: AFCG). During this calendar quarter we added to a number of cannabis ancillary names for liquidity and stability. We also maintained a much larger balance of cash in the Fund, which has turned out to be a smart move in this negative market.
Contributors / Detractors:
During the 4th quarter, most of the fund’s holdings had losses. A couple bright spots (again) were the cannabis REITS Innovative Industrial Properties (NYSE: IIPR), up 14% and Power REIT (NYSE American: PW), up more than 37%. Virtually all planting-touching US cannabis was negative.
|Ticker||Security Description||Portfolio Weight %|
|TCNNF||TRULIEVE CANNABIS SWAP REC||13.15%|
|GTBIF||GREEN THUMB INDUSTRIES SWAP REC||12.19%|
|CURLF||CURALEAF HOLDINGS INC SWAP REC||9.47%|
|IIPR||INNOVATIVE INDUSTRIAL PROPER||8.65%|
|VRNOF||VERANO HOLDINGS CORP SWAP REC||8.61%|
|CRLBF||CRESCO LABS INC SWAP REC||7.18%|
|AYRWF||RECV AYR WELLNESS INC||4.98%|
|TRSSF||TERRASCEND CORP SWAP REC||4.33%|
|HYFM||HYDROFARM HOLDINGS GROUP INC||4.03%|
As of 12.31.2021. Cash is not included. Subject to change.
Please see our complete Fund holdings at advisorshares.com/etfs/msos. The holdings details are updated each market day.
To get updates on the funds, tune in to AdvisorShares’ Alpha Nooner Show streaming live each regular weekday starting at 11:50 am (East Coast time), where I am a guest almost every Tuesday. Find it on most major social media platforms or visit our the AdvisorShares “Events” webpage for more information.
Past Manager Commentary