YOLO: 1st Quarter 2022 Portfolio Manager Review
In the 1st quarter of 2022, AdvisorShares Pure Cannabis ETF (NYSE: YOLO) declined -17.99% on its net asset value (NAV) and -17.40% on its market price. These returns are pretty much in-line for cannabis stocks overall. Since its inception date, YOLO remains among the best-performing cannabis ETFs. It’s bad out there, but we do what we can in an attempt to weather the storm. I would invite investors to compare YOLO’s performance to that of any other cannabis ETFs over equal periods of time.
In the first quarter, we added new but relatively small positions in WM Technology, Inc (NASDAQ: MAPS), Leafly Holdings (NASDAQ: LFLY), and Clever Leaves Holdings (NASDAQ: CLVR). We had avoided investing in MAPS for a long time, but now felt good at the recent price.
Winners and Losers
During the quarter, there were only a few positives. Jazz Pharma (NASDAQ: JAZZ) gained 22.19% and Tilray Brands (NASDAQ: TRLY) was up 10.53%. Among smaller holdings, High Tide (NASDAQ: HITI) was up 7.16%, Israeli firm Intercure (NASDAQ: INCR) up 6.78%, and Charlottes Web (TSX: CWEB) up 6.66%.
YOLO’s returns were driven largely by its concentrations in affiliated fund, AdvisorShares Pure US Cannabis ETF (MSOS), which in turn holds large amounts of the biggest U.S. multi-state operators (MSOs). MSOS dropped -18.24% on its net asset value (NAV) in the 1st quarter.
As a reminder, during the last quarter of 2021, we made some significant portfolio changes to YOLO by adding MSOS as the top holding and removing most of the Fund’s individual MSO names at the same time. We feel that it’s a much more efficient way for YOLO to get most of its US cannabis exposure one simple holding. Note – MSOS fees are waived within YOLO’s portfolio so that shareholders do not pay for one ETF to own another.
After being strong bright spots in the Fund in 2021, cannabis-related REITS turned negative this quarter. Innovative Industrial Properties (NYSE: IIPR) returned -21.21% and Power REIT (NYSE American: PW) -42.82%. Other losses in this difficult quarter included GrowGeneration (NASDAQ: GRWG) at -29.43%, Canopy Growth (NASDAQ: CGC) at -13.16% and Village Farms International (NASDAQ: VFF) -17.76%.
|Ticker||Security Description||Portfolio Weight %|
|MSOS||ADVISORSHARES PURE US CANN||34.17%|
|VFF||VILLAGE FARMS INTERNATIONAL||14.34%|
|IIPR||INNOVATIVE INDUSTRIAL PROPER||12.86%|
|TLRY||TILRAY BRANDS INC||5.11%|
|TRSSF||TERRASCEND CORP SWAP REC||5.00%|
|RIV||RIV CAPITAL INC||3.91%|
|CGC||CANOPY GROWTH CORP||3.36%|
|SOLCF||SOL GLOBAL INVESTMENTS CORP SWAP REC||2.99%|
|JAZZ||JAZZ PHARMACEUTICALS PLC||1.76%|
As of 03.31.2022. Cash is not included. Subject to change.
Please see our complete Fund holdings at advisorshares.com/etfs/yolo. The holdings details are updated each market day.
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Past Manager Commentary