PSIL: 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/psil.
It was a challenging quarter for psychedelics stocks. Based on net asset value (NAV), PSIL was down -32.33% for the 2nd quarter 2022. This was in part driven by broader macro weakness, as the S&P 500 Index also also down significantly for the quarter at -16.10%.
During the quarter, we had increased exposure to FSD Pharmaceuticals (HUGE), but also pulled back some of that exposure at quarter end. We also added to Bright Minds Bioscience (DRUG), and Green Brook (GBNH). We reduced exposure in Field Trip health (FTRP), and Seelos Therapeutics (SEEL)
Winners / Losers
With not a lot of winners, the only positive performance story was that the larger than normal money market position added a few basis points of positive performance. Among the stock holdings, Psybio Therapeutics (PSYBF) was basically flat for the month. Our position in Mind Medicine (MNMD) was the biggest drag on the portfolio being down about 44% during the quarter.
|Ticker||Security Description||Portfolio Weight %|
|CMPS||COMPASS PATHWAYS PLC||11.86%|
|ATAI||ATAI LIFE SCIENCES NV||9.17%|
|MNMD||MIND MEDICINE MINDMED INC||8.72%|
|ENVB||ENVERIC BIOSCIENCES INC||4.88%|
|FTRP||FIELD TRIP HEALTH LTD||4.81%|
|SEEL||SEELOS THERAPEUTICS INC||4.51%|
|GHRS||GH RESEARCH PLC||4.50%|
|HUGE||FSD PHARMA INC-CLASS B||4.40%|
|DRUG||BRIGHT MINDS BIOSCIENCES INC||4.31%|
As of 06.30.2022. Cash is not included. Subject to change.
Please see our complete Fund holdings at advisorshares.com/etfs/psil. The holdings details are updated each market day.
We view the psychedelic space similarly to bitcoin. Nationwide and worldwide, we regularly see more usage, more solutions and more normal acceptance. At the same time, the space is so volatile that one small amount of bad news can hit stock prices in this category quickly. As an example, think of how the vape-gate issue impacted legal cannabis. While the headline and issue were related only to cannabis vapes in the illicit market, the overall space can react in large percentages for both good and bad news. We want to always remind people to think about how they want to invest in the psychedelic space as PSIL is designed to be fully or mostly fully invested. It is not a tactical strategy. So if an investor wants to have a more aggressive risk managed approach to investing in this space, they should have a plan/strategy to trade around PSIL. Regardless of the type of investor you are, we appreciate your investment and trading of PSIL as we work to grow the ETF and raise awareness of this industry and its investment opportunities.