YOLO: 1st Quarter 2023 Portfolio Manager Review
Performance
Based on net asset value (NAV), YOLO was down just over 4.53% for Q1 2023.
Portfolio
During the quarter, new positions were added in AFC Gamma Inc. (AFCG), Chicago Atlantic Real Estate (REFI), and SNDL Inc. (SNDL). Positions in Valens Co Inc. (VLNS) and iAnthus Capital Holdings (ITHUF) were removed from the portfolio.
Winners and Losers
Although smaller positions in the portfolio, Pharmacielo LTD (PCLO) was up by 34.29% for the quarter and Clever Leaves Holdings Inc. (CLVR) was up 24.40% for the quarter. Charlottes Web Holdings Inc. (CWEB) was down 40.41% and RIV Capital Inc. (RIV) was down 42.86% for the quarter.
Market Update
Activity for international cannabis companies has been slow. Canada continues to shake out some companies, even those that are highly capitalized. With significant continuous losses, they are mostly left to wait for opportunities to grow in the U.S.
While international investment opportunities are limited, but growing, some of the highlights for the quarter include:
- Malaysian Medical Professionals Voice Support For Medical Cannabis.
- A measure that would legalize recreational cannabis in Colombia is advancing through the legislature.
- Germany is expected to introduce a bill in the coming weeks which, if passed, would greenlight the consumption and sale of cannabis in Europe’s largest economy. Health Minister Karl Lauterbach last week said that his plans received “very good feedback” from the European Commission.
We want to always remind people to think about how they want to invest in the space as YOLO is designed to be fully or mostly fully invested. It’s not a fully tactical strategy. If you want to have a more aggressive risk managed approach to investing in this space, you will want to have a plan/strategy to trade around YOLO. Regardless of the type of investor you are, we appreciate your investment and trading of YOLO as we work to grow the ETF and continue to raise awareness around the cannabis industry and its investment opportunities.
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| MSOS | ADVISORSHARES PURE US CANN | 46.19% |
| VFF | VILLAGE FARMS INTERNATIONAL | 7.53% |
| IIPR | INNOVATIVE INDUSTRIAL PROPER | 5.50% |
| TLRY | TILRAY BRANDS INC | 5.44% |
| JAZZ | JAZZ PHARMACEUTICALS PLC | 5.23% |
| HITI | HIGH TIDE INC | 4.78% |
| GRWG | GROWGENERATION CORP | 3.60% |
| OGI | ORGANIGRAM HOLDINGS INC | 2.75% |
| REFI | CHICAGO ATLANTIC REAL ESTATE | 2.65% |
| AFCG | AFC GAMMA INC | 2.28% |
As of 03.31.2023. 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.
Tune in to AdvisorShares’ Alpha Nooner Show streaming live each regular weekday starting at 12:00 pm (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 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.