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.
BEATEN-DOWN STOCKS CATCH A BREAK
April brought a strong bid in momentum-related securities as market participants began to look past the U.S. / Iran conflict. An encouraging start to earnings season revived investor demand for semiconductor industry stocks and familiar AI–themed names. Market sentiment was firmly risk-on as investors piled back into areas that had been punished in the first quarter. AI-related companies now account for 45% of total S&P 500 market capitalization and are expected to drive 40% of earnings growth this year, according to research by Goldman Sachs.1
Although LBAY’s 10.93% year-to-date market price performance (as of April 30, 2026) remains solid, the dramatic rebound in high-beta momentum stocks presented a challenging environment in April. Modest gains in our long positions were more than offset by negative returns in the short book as lower quality stocks caught a tailwind. While short-selling was generally difficult during the period, our top-performing individual short positions included Moderna & Ollie’s Bargain Outlet Holdings.
TOP INDIVIDUAL CONTRIBUTORS
Long KEURIG DR PEPPER (KDP). Shares of the beverage conglomerate rallied through the month, moving sharply higher after the company reported strong results for the first quarter. Earnings per share came in higher than analyst expectations, and management reaffirmed full year guidance for 2026.2 KDP completed its acquisition of JDE Peete’s in early April with plans to split into two independent companies; one focused on beverages, the other on coffee.
Long CARRIER GLOBAL (CARR). The company manufactures heating, cooling, fire, and security systems. Carrier’s stock surged higher after reporting a solid set of quarterly results including a 500% increase in orders related to data center demand. Management reaffirmed its 2026 guidance, and results showed an order backlog that fulfills estimates for full year datacenter sales.
TOP INDIVIDUAL DETRACTORS
Short CREDO TECHNOLOGY GROUP (CRDO). Our short position in Credo weighed on performance in April as the company sits squarely in the AI infrastructure space, providing high speed / lower power connectivity for datacenters. Credo’s shares advanced during the month after it announced plans to acquire DustPhonics.3 We believe the stock is overvalued with forward estimates relying on an extremely high growth trajectory.
Short COREWEAVE (CRWV). We maintain a short position in Coreweave, which owns and operates a rapidly expanding network of datacenters. Its stock rallied in April as investors found renewed enthusiasm for AI infrastructure, and the company announced deals with Meta and Anthropic. We believe the stock is overvalued as Coreweave maintains a high degree of financial leverage with plans for additional large-scale capital expenditure. Despite significant revenue growth, the company’s earnings per share are negative.
NOTABLE TRADES EXECUTED
Buys (Long):
Berkshire Hathaway (BRK.B). We initiated a position in Berkshire Hathaway during the month as its valuation became compelling. In its first annual shareholder meeting under CEO Greg Abel, the company announced a record cash balance of $397B in the first quarter. Leatherback is not alone in purchasing Berkshire shares, as the company also announced approximately $234M was spent on stock buybacks in March.4 This was Berkshire’s first share repurchase since May 2024.
Barrick Mining Corporation (B). We bought shares of the mining giant as the company proceeds with plans to spinoff its North American gold assets through an IPO by the end of this year.5 The remaining company will be focused on copper production. We believe this presents an attractive opportunity, combined with Barrick’s more than 4% dividend yield (as of April 30, 2026) as we wait for the spinoff to close.
Other noteworthy activity in the fund’s long book included an addition to our Visa (V) position, bringing the company into the fund’s top 10 holdings as of April 30, 2026. We believe Visa can continue to benefit from inflation. We trimmed our Dow (DOW) and Bunge Global (BG) positions. We also exited positions in LyondellBasell Industries (LYB), Marzetti (MZTI), Zimmer Biomet Holdings (ZBH), and Rio Tinto (RIO).
Sells (Short):
KKR & Co. (KKR). We initiated a short position in the private equity company due to concerns related to its private credit business. KKR’s private credit funds have experienced increased levels of non-performing loans, leading to a credit rating downgrade for one of its funds. With relatively high exposure to the software industry and heightened anxiety among investors, escalating redemption requests have led the company to limit redemptions for some of its funds, which could cause selling pressure to build.
Other notable actions taken in the short book during April included closing our short position in Evercore (EVR) after the company reported poor results. We also exited our short position in BlackRock (BLK).
POSITIONING NOTES AS OF 4/30/2026
We are skeptical of the extremely high valuations in some areas of the equity market where growth estimates appear irrational, in our opinion. We also 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 in this environment.