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.