The Leatherback Long/Short Alternative Yield ETF (LBAY) (the “Fund”) net asset value (NAV) increased by 16.23% in the first quarter of 2026, compared to a decline of -4.33% for the S&P 500 Index. LBAY paid our sixty-fourth consecutive monthly distribution, at $0.085 per share in March. This is a 2.85% SEC yield versus the S&P 500 Index dividend yield of approximately 1.19%, and the 10-Year US Treasury yield of 4.32%*.
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. Performance current to the most recent month-end can be obtained by calling (833) 417-0090. The gross expense ratio for the fund is 1.27%.
View LBAY standardized performance here.
The Fund’s NAV is the sum of all its assets less any liabilities, divided by the number of shares outstanding. The market price is the most recent price at which the Fund was traded.
*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. The 30-day SEC yield is calculated with a standardized formula mandated by the SEC. The formula is based on maximum offering price per share and does not reflect waivers in effect. The 30-day SEC yield is calculated from the 30 days ending on the last day of the previous month. This figure reflects income less expenses and approximates the yield an investor would receive in a 12-month period if a fund continues earning the same rate for the rest of the year. View the 30-day SEC yield here. The US Treasury yield reflects the interest rate the US government could expect to pay to borrow money for different periods of time.
MARKET DISLOCATIONS HAVE SHINED A SPOTLIGHT ON TRUE FUNDAMENTALS.
The first quarter of 2026 brought multiple events which triggered volatility and challenged narratives driving performance in some key areas of the equity market. Concerns about financing large data center buildout projects carried over from the fourth quarter of 2025. Software stocks were hit especially hard in the quarter after Anthropic released a new version of its AI tool which led investors to consider the threats agentic AI poses to SaaS companies. In March, escalating military actions in the Middle East led to price shocks in energy markets and disruption to global supply chains.
From a sector perspective, The Leatherback Long-Short Alternative Yield ETF (LBAY) was well-positioned for the challenges presented in the first quarter. The long portfolio had its heaviest weightings in the materials, staples, and energy sectors. The short portfolio also contributed meaningfully as positions across a variety of sectors added to the fund's total return for the quarter. Notable top-performing individual short positions included Robinhood Markets, Applovin, and Rigetti Computing (read more on Rigetti: Leatherback Insights - Tide Shift).
TOP INDIVIDUAL CONTRIBUTORS
Long DOW INC (DOW). Shares of the chemical industry giant rose through the quarter and moved sharply higher in March as investors expected the company to benefit from higher chemical prices due to global supply shortages caused by war in the Middle East. In March, Dow made its 458th consecutive dividend payment by the company or its affiliates since 1912.1
Long EXXON MOBIL (XOM). The stock traded higher through January and February after Exxon announced full-year results for 2025. Shareholder distributions totaled $37.2 billion for the year, including dividends, and share repurchases, and the company announced plans for $20 billion of share repurchases in 2026. Exxon has grown its annual dividend-per-share for 43 consecutive years. The company’s stock jumped higher in March as oil prices rose.2
TOP INDIVIDUAL DETRACTORS
Long WHIRLPOOL (WHR). Company shares sold off sharply in February after Whirlpool announced plans to recapitalize through the issuance of additional stock to accelerate deleveraging and strategic growth.3 This brought sharp public criticism from fund manager David Tepper.4 At quarter-end the company announced executive departures.
Long FREDDIE MAC (FMCC). Shares of Freddie Mac steadily traded lower through the quarter as optimism for its privatization and a 2026 IPO faded. Higher mortgage rates early in the quarter weighed on the housing market, and the Trump administration’s directive for Freddie to purchase $200 billion in mortgage bonds led investors to believe privatization could be delayed. We are a patient holder of Freddie Mac stock as we believe it presents an outsized risk/return opportunity.
NOTABLE TRADES EXECUTED
Target (TGT). We initiated a long position in the retailer as we believe its stock presents a favorable risk/return profile with attractive shareholder yield. Target has seen its share price fall dramatically since its 2021 high. We believe the stock has stabilized and currently trades for approximately 15 times earnings with a nearly 4% dividend. The company has also repurchased approximately 10% of its publicly available shares.
Uber Technologies (UBER). We bought shares of Uber after the company’s stock had fallen nearly 25% since its September 2025 high, and it currently trades for approximately 15 times earnings. In August 2025, Uber announced a plan to repurchase nearly $20 billion of its stock, marking an evolution in the company’s view on returning capital to shareholders.5
POSITIONING NOTES AS OF 3/31/2026
From a high level, we remain cautious on monetary policy, leading us to favor exposure to hard assets and quality businesses with tangible economic value. For long positions, we seek solid companies that prioritize shareholder yield through dividends and stock buybacks while offering the potential for capital gains. Our short positions consist of individual companies we think are overvalued or overhyped and are likely to decline in share price. We see plenty of opportunities, both long and short, as market dislocations reveal true company fundamentals.
View LBAY top 10 holdings here. Holdings are subject to change. 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: Bloomberg, unless otherwise noted.
**Definitions: A basis point is one hundredth of one percent. One basis point is 0.01%. Earnings per Share Estimate is a company’s expected future annual earnings per share, as estimated by professional analysts. Trailing Price to Earnings (P/E) is the ratio for valuing a company that measures current share price divided by its earnings per share over the last 12 months. Forward Price to Earnings Multiple (P/E) is the ratio for valuing a company that measures current share price divided by its forecasted earnings per share. The cyclically adjusted price to earnings (CAPE) is a ratio that divides a company's or index's current market price by the average inflation-adjusted earnings per share of the last 10 years. Price to Book (P/B) is the ratio for valuing a company that measures current share price divided by book value per share. Book value is a company’s total assets minus liabilities. Price to Sales is the ratio for valuing a company that measures current share price to revenue, indicating how much investors are willing to pay for each dollar of sales. The Q ratio is a financial metric that compares a company's market value to the replacement cost of its assets. The market cap-to-GDP ratio, also known as the "Buffett Indicator," measures a country's total stock market capitalization relative to its Gross Domestic Product (GDP). It's calculated by dividing the total market value of all publicly traded companies by the country's annual GDP. Enterprise Value (EV) is a measure of a company’s total value, and includes market capitalization, cash, and debt. EBITDA is a company’s earnings before interest, taxes, depreciation, and amortization. EV/EBITA may be used as a measure of the value of a company and its operating performance. EV/Sales multiple is the Enterprise Value to trailing 12-month sales ratio. Price to Sales (P/S) ratio is the company's stock price to its revenue, and can offer an indication of how much investors are willing to pay for each dollar of sales.
1 Source: https://www.prnewswire.com/news-releases/dow-declares-quarterly-dividend-of-35-cents-per-share-302686826.html
2 Source: https://corporate.exxonmobil.com/news/news-releases/2026/0130-exxonmobil-announces-2025-results
3 Source: https://www.prnewswire.com/news-releases/whirlpool-announces-strategic-recapitalization-to-accelerate-deleveraging-and-strategic-growth-302694986.html
4 Source: https://www.cnbc.com/2026/02/25/david-tepper-sends-scathing-letter-to-whirlpool.html
5 Source: https://www.cnbc.com/2025/08/06/uber-stock-q2-2025-earnings.html
Opinions expressed are subject to change at any time, are not guaranteed, and should not be considered investment advice.
Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information is in the prospectus. A prospectus may be obtained by clicking here. Please read the prospectus carefully before you invest.
“Long” and “short” are investment terms used to describe ownership of securities. To buy securities is to “go long.” The opposite of going long is “selling short.” Short selling is an advanced trading strategy that involves selling a borrowed security. Short sellers make a profit if the price of the security goes down and they are able to buy the security at a lower amount than the price at which they sold the security short.
Since the Funds are actively managed they do not seek to replicate the performance of a specified index. The Funds therefore may have higher portfolio turnover and trading costs than index-based funds.
LBAY Risks: Investing involves risk, including the loss of principal. As with all ETFs, Fund shares may be bought and sold in the secondary market at market prices. The market price normally should approximate the Fund’s net asset value per share (NAV), but the market price sometimes may be higher or lower than the NAV. The Fund is new with a limited operating history. There are a limited number of financial institutions authorized to buy and sell shares directly with the Fund; and there may be a limited number of other liquidity providers in the marketplace. There is no assurance that Fund shares will trade at any volume, or at all, on any stock exchange. Low trading activity may result in shares trading at a material discount to NAV.
The Fund uses short sales and derivatives (options), both of which may involve substantial risk. The loss on a short sale is in principle unlimited since there is no upward limit on the price of a shorted asset. The potential loss from a derivative may be greater than the amount invested due to counter-party default; illiquidity; or other factors. The Fund may hold illiquid assets which may cause a loss if the Fund is unable to sell an asset at a beneficial time or price.
Through its investments in REITs, the Fund is subject to the risks of investing in the real estate market, including decreases in property revenues, increases in interest rates, increases in property taxes and operating expenses, legal and regulatory changes, a lack of credit or capital, defaults by borrowers or tenants, environmental problems and natural disasters.
The Fund’s exposure to MLPs may subject the Fund to greater volatility than investments in traditional securities. The value of MLPs and MLP based exchange traded funds and notes may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or sectors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political and regulatory developments.
BDCs generally invest in debt securities that are not rated by a credit rating agency and are considered below investment grade quality (“junk bonds”). Little public information generally exists for the type of companies in which a BDC may invest and, therefore, there is a risk that the Fund may not be able to make a fully informed evaluation of the BDC and its portfolio of investments.
The Fund is classified as “non-diversified” and may invest a relatively high percentage of its assets in a limited number of issuers. As a result, the fund may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly concentrated in certain issuers.
Foreside Fund Services, LLC, Distributor
Tidal ETF Services, Launch and Structure Partner
Leatherback Asset Management, Foreside Fund Services, and Tidal ETF Services are not affiliated.
Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information is in the prospectus. A prospectus may be obtained by clicking here. Please read the prospectus carefully before you invest.
“Long” and “short” are investment terms used to describe ownership of securities. To buy securities is to “go long.” The opposite of going long is “selling short.” Short selling is an advanced trading strategy that involves selling a borrowed security. Short sellers make a profit if the price of the security goes down and they are able to buy the security at a lower amount than the price at which they sold the security short.
Since the Funds are actively managed they do not seek to replicate the performance of a specified index. The Funds therefore may have higher portfolio turnover and trading costs than index-based funds.
LBAY Risks: Investing involves risk, including the loss of principal. As with all ETFs, Fund shares may be bought and sold in the secondary market at market prices. The market price normally should approximate the Fund’s net asset value per share (NAV), but the market price sometimes may be higher or lower than the NAV. The Fund is new with a limited operating history. There are a limited number of financial institutions authorized to buy and sell shares directly with the Fund; and there may be a limited number of other liquidity providers in the marketplace. There is no assurance that Fund shares will trade at any volume, or at all, on any stock exchange. Low trading activity may result in shares trading at a material discount to NAV.
The Fund uses short sales and derivatives (options), both of which may involve substantial risk. The loss on a short sale is in principle unlimited since there is no upward limit on the price of a shorted asset. The potential loss from a derivative may be greater than the amount invested due to counter-party default; illiquidity; or other factors. The Fund may hold illiquid assets which may cause a loss if the Fund is unable to sell an asset at a beneficial time or price.
Through its investments in real estate investment trusts (REITs), the Fund is subject to the risks of investing in the real estate market, including decreases in property revenues, increases in interest rates, increases in property taxes and operating expenses, legal and regulatory changes, a lack of credit or capital, defaults by borrowers or tenants, environmental problems and natural disasters.
The Fund’s exposure to master limited parterships (MLPs) may subject the Fund to greater volatility than investments in traditional securities. The value of MLPs and MLP based exchange traded funds and notes may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or sectors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political and regulatory developments.
Business Development Companies (BDCs) generally invest in debt securities that are not rated by a credit rating agency and are considered below investment grade quality (“junk bonds”). Little public information generally exists for the type of companies in which a BDC may invest and, therefore, there is a risk that the Fund may not be able to make a fully informed evaluation of the BDC and its portfolio of investments.
The Fund is classified as “non-diversified” and may invest a relatively high percentage of its assets in a limited number of issuers. As a result, the fund may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly concentrated in certain issuers.
Foreside Fund Services, LLC, Distributor
Tidal ETF Services, Launch and Structure Partner
