The Leatherback Long/Short Alternative Yield ETF (LBAY) (the “Fund”) net asset value (NAV) advanced by 1.14% in April, compared to an 8.72% decline for the S&P 500 Index. LBAY paid our seventeenth consecutive monthly distribution, at $0.065 per share in April. This is a 2.63% SEC yield versus the S&P 500 Index dividend yield of approximately 1.51%, and the 10-Year US Treasury yield of 2.937%. Year to date as of April 30, 2022, NAV for the Fund has returned 12.94%, compared to a decline of 12.92% for the S&P 500 Index. NAV performance for the Fund to date since inception (November 16, 2020) has produced a 44.26% cumulative total return and a 28.71% annualized total return.
For the past few years, you could have ignored accounting, financial statements, or anything else and it didn’t matter. Now, given that Fed liquidity is being drained and interest rates are increasing, it’s back to fundamentals: balance sheets, cash flow*, and reading annual reports.” - Chris Senyek
*Definitions: A basis point is one hundredth of one percent. One basis point is 0.01%. Operating Margin measures the profitability of a company after paying variable costs, but before paying interest or taxes. It is calculated as Earnings before Interest & Taxes (EBIT) / Net Sales. Operating Leverage is a measure of the change in operating income relative to a change in revenue. Price to Earnings (P/E) Multiple is the ratio for valuing a company that measures current share price divided by its reported earnings per share. Earnings per Share Estimate is a company’s expected future annual earnings per share, as estimated by professional analysts. Forward Price to Earnings Multiple is the ratio for valuing a company that measures current share price divided by its forecasted earnings per share. Cash flow is the net amount of cash generated by a company, with cash received as an inflow, and cash spent as an outflow.
1 The S&P 500 Index includes 500 leading companies and covers approximately 80% of the available market capitalization. The S&P 500 Dividend Yield is the estimated sum of all dividends paid by the index’s stocks in the last 12 months, divided by the index market capitalization as reported by the S&P. The dividend yield does not represent or predict the performance of the Fund. Indexes are unmanaged and it is not possible to invest in an index.
2 The 30-day SEC yield is calculated from the 30 days ending on the last day of the previous month. This figure approximates the yield an investor would receive in a year, assuming that each bond in the portfolio is held until maturity. View the 30 day SEC yield here.
3Source: @CNBCOvertime, May 6, 2022
4Source: Bloomberg, May 6, 2022
5Source: https://fred.stlouisfed.org/, May 17, 2022
6Source: Bloomberg. The FT Wilshire 5000 Index is designed to represent the total U.S. equity market. The FT Wilshire 5000 includes all U.S. equity securities that have readily available prices. Indexes are unmanaged and it is not possible to invest in an index.
7Source: Bloomberg. The Bloomberg US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate pass-throughs), ABS and CMBS. Indexes are unmanaged and it is not possible to invest in an index.
8View LBAY top 10 holdings here. Characteristics and metrics of the companies shown are for the underlying securities in the fund’s portfolio and do not represent or predict the performance of the fund. There is no guarantee that a company will pay or continually increase its dividend. Section Source: https://content.schwab.com/, unless otherwise noted. Return on Tangible Common Equity (ROTCE) represents annualized adjusted net income available to common stockholders as a percentage of average tangible common equity. Tangible common equity represents common equity less goodwill, acquired intangible assets — net, and related deferred tax liabilities.
10Chris Senyek Quote Source: Barron’s, May 20, 2022