MSOS: 1st Quarter 2023 Portfolio Review
Performance
While the cannabis space continues to be challenging and despite this past quarter, our belief in the long term opportunities in the sector remains strong. For the three-month period that this commentary covers (January 1, 2023 through March 31, 2023) the net asset value (NAV) on MSOS dropped -18.72%.
Similar forces to the previous quarters proceeded to hold the sector back – mainly, lack of clear federal reform and higher sensitivity to short selling pressures. We believe these depressed valuations still represent good buying opportunity for our shareholders in the long term.
Portfolio
The portfolio maintains a high concentration in its top holdings in the largest multi-state operators (MSOs). This is a continuing trend as the top five holdings represented 58.5% of the portfolio at the end of Q1 2022, 66.8% of the portfolio by the end of Q2 2022, 73.5% of the portfolio at the end of Q3 2022, 81.3% of the portfolio at the end of Q4 2022, and 78.66% of the portfolio at the end of Q1 2023.
Assets have been driven substantially lower due to the contractions all over the cannabis space but total shares outstanding remain high. We believe this shows the strength and opportunity in cannabis for the long term. While the performance is painful, we believe this is an opportunity to take advantage of what we believe to be extremely undervalued companies.
New Positions
There were no new additions for this quarter, but we continued to shift and adjust weightings to manage the portfolio. Hydrofarm Holdings Group Inc. (HYFM) was removed from the portfolio.
Winners and Losers
There were a few winners this quarter: Glass House Brands (GLASF) was up 47.12% for the quarter, Terrascend Corp (TRSSF) was up 34.51% for the quarter, and Planet 13 Holdings (PLNHF) gained 27.87% for the quarter. The majority of the fund’s holdings had losses during the quarter: among the Fund’s largest positions, Curaleaf (CURLF) was -34.61%, Trulieve (TNCCF) was -26.16%, and Cresco Labs (CRLBF) was -13.89%.
Market Update
Despite the punishing stock prices as of late, there continues to be expansion and growth in terms of new states coming online and expanding their current cannabis laws. Legal recreational sales started in Connecticut in January and in Missouri in February. This growth and expansion into new and existing states continues to enlarge the footprint of cannabis companies while putting pressure on neighboring states to adopt better cannabis laws.
Twitter became the first major social media platform to allow cannabis advertisements in February, although with numerous restrictions.
At a federal level, while the progress has so far been frustrating, we remain cautiously optimistic that we will see some form of either comprehensive or incremental legislation.
Top Holdings
Ticker | Security Description | Portfolio Weight % |
GTBIF | GREEN THUMB INDUSTRIES SWAP REC | 26.14% |
CURLF | CURALEAF HOLDINGS INC SWAP REC | 18.17% |
TCNNF | TRULIEVE CANNABIS SWAP REC | 15.19% |
VRNOF | VERANO HOLDINGS CORP SWAP REC | 11.61% |
CRLBF | CRESCO LABS INC SWAP REC | 7.66% |
TRSSF | TERRASCEND CORP SWAP REC | 7.55% |
CCHWF | COLUMBIA CARE INC SWAP REC | 3.42% |
JUSHF | JUSHI HOLDINGS INC SWAP REC | 2.18% |
GLASF | GLASS HOUSE BRANDS | 1.85% |
PLNHF | PLANET 13 HOLDINGS SWAP REC | 1.74% |
As of 03/31/2023. 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’ AlphaNooner Show streaming live each regular weekday starting at 12:00 pm (East Coast time), where I am a guest almost every Tuesday. Other important guests from the cannabis world often join too. Find it on most major social media platforms or visit our the AdvisorShares “Events” webpage for more information.

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 www.advisorshares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, distributor.
The Fund is subject to a number of risks that may affect the value of its shares. This section provides additional information about the Fund’s principal risks. The degree to which a risk applies to the Fund varies according to its investment allocation. Each investor should review the complete description of the principal risks before investing in the Fund. As with investing in other securities whose prices increase and decrease in market value, you may lose money by investing in the Fund.
Cannabis-Related Company Risk. Cannabis-related companies are subject to various laws and regulations that may differ at the state/local and federal level. These laws and regulations may (i) significantly affect a cannabis-related company’s ability to secure financing, (ii) impact the market for marijuana industry sales and services, and (iii) set limitations on marijuana use, production, transportation, and storage. Cannabis-related companies may also be required to secure permits and authorizations from government agencies to cultivate or research marijuana. In addition, cannabis-related companies are subject to the risks associated with the greater agricultural industry, including changes to or trends that affect commodity prices, labor costs, weather conditions, and laws and regulations related to environmental protection, health and safety. Cannabis-related companies may also be subject to risks associated with the biotechnology and pharmaceutical industries. These risks include increased government regulation, the use and enforcement of intellectual property rights and patents, technological change and obsolescence, product liability lawsuits, and the risk that research and development may not necessarily lead to commercially successful products.
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 any time thereafter. These views are intended to assist shareholders in understanding their investments and do not constitute investment advice.