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BKCH: June 2019 Portfolio Manager 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/fund/bkch.

Portfolio Review

For the month of June, the AdvisorShares Sabretooth ETF (BKCH) was up 4.77% (NAV) compared to 7.05% for the S&P 500. Since it’s inception (2/6/19), BKCH was up 8.16% (NAV), while the S&P 500 gained 8.61% for the same time frame.

June was another strong month for BKCH. While the portfolio began basically equal weighted the leaders and laggards have created a portfolio that is spread between 1.43% and 4.49% with most securities weighted in the 3% range. The top ten holdings all had positive returns for the month with Amazon.com (NASDAQ:AMZN) showing strong gains of 6.68% and the second largest holding Alteryx (NYSE:AYX) leading the fund with a robust 25.02% gain for the month. OKTA Corp (NASDAQ:OKTA) returned 9.08% for the month.

There were two deletions and two additions to the portfolio during the month of June. Fireeye (NASDA:FEYE) and Cloudera (NYSE:CLDR) were both removed during the month with CrowdStrike Holdings (NASDAQ:CRWD) and Facebook (NASDAQ:FB) being the additions. We felt that CRWD represented a more robust cloud security platform and appreciation potential that FEYE. CLDR had an awful report and mass lowering of targets in June and was deleted from the portfolio. FB was added upon their announcement of Libra and their venture into Blockchain, albeit at a percentage that is less than half of the portfolio average (1.43% versus an average of 3.34%)

July begins earnings season for a few of the portfolio holdings and gets hot and heavy in August. We will continue to monitor the earnings report and company guidance as they are announced.

Top Holdings

Ticker Security Description Portfolio Weight %
MDB MONGODB INC 4.55%
AMZN AMAZON.COM INC 4.49%
AYX ALTERYX INC – CLASS A 4.47%
OKTA OKTA INC 4.37%
ZEN ZENDESK INC 3.75%
MSFT MICROSOFT CORP 3.61%
PYPL PAYPAL HOLDINGS INC 3.59%
MA MASTERCARD INC – A 3.57%
V VISA INC-CLASS A SHARES 3.52%
TWLO TWILIO INC – A 3.48%

As of  06.30.2019.

 

Respectfully,

Scott Freeze, CIO
Sabretooth Advisors
AdvisorShares Sabretooth ETF (BKCH) Portfolio Manager

Past Manager Commentary

Definitions:

The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.

The Nasdaq Composite Index is the market capitalization-weighted index of approximately 3,000 common equities listed on the Nasdaq stock exchange.


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.

There is no guarantee that the Fund will achieve its investment objective. An investment in the Fund is subject to risk, including the possible loss of principal amount invested. Computer software/services companies can be significantly affected by competitive pressures, aggressive pricing, technological developments, changing domestic demand, the ability to attract and retain skilled employees and availability and price of components. Many computer software/services companies rely on a combination of patents, copyrights, trademarks and trade secret laws to establish and protect their proprietary rights in their products and technologies. There can be no assurance that the steps taken by computer software/services companies to protect their proprietary rights will be adequate to prevent misappropriation of their technology or that competitors will not independently develop technologies that are substantially equivalent or superior to such companies’ technology. Stocks of technology companies and companies that rely heavily on technology, especially those of smaller, less-seasoned companies, tend to be more volatile than the overall market. Additionally, companies in the technology sector may face dramatic and often unpredictable changes in growth rates and competition for the services of qualified personnel. For other risks specific to the fund please read the prospectus.

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.