LBAY Portfolio Review - October 2026

November 10, 2026

The Leatherback Long/Short Alternative Yield ETF (LBAY) (the “Fund”) net asset value (NAV) increased by 10.53% in October 2026, compared to a decline of -0.87% for the S&P 500 Index. LBAY paid our 71st consecutive monthly distribution, at $0.085 per share in October. This is a 2.77% SEC yield versus the S&P 500 Index dividend yield of approximately 1.05%. Year-to-date, the net asset value of LBAY has increased by 16.60%, compared to an increase of 11.77% for the S&P 500. The Fund’s correlation to the S&P 500 is -0.19 as of 10/31/2026.

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.

OCTOBER 2026

THE TIDE GOES OUT ON MOMENTUM

October brought another month where the broad market index performance masked significant shifts in underlying market dynamics. Although the S&P 500 slipped less than 1% during the month, momentum unwound sharply, reflected in the MSCI USA Momentum Factor Net Total Return Index decline of roughly 10.87%. The AI infrastructure trade came under heavy pressure as investors looked harder at AI financing, and interest rates remained elevated, with the 10-year Treasury yield above 5% for most of October. Renewed tensions in the U.S.-Iran conflict pushed Brent crude over $110 per barrel as markets priced in potential supply disruptions.

During the month, capital rotated into tangible, cash-generating businesses with shareholder-friendly management teams. As we discussed in our Second Quarter 2026 Review, we expected performance to broaden within the market, and we have built our portfolio for this type of environment. Both long and short books contributed to LBAY’s performance in October with our long exposure to energy and special situations leading the way. Driven by these shifting market dynamics and capital rotation, we see outsized price swings in specific names as temporary dislocations and are actively taking advantage of them.

"A quarter of every American business, plus or minus, is owned by some combination of Vanguard, State Street and Northern Trust… When you shrink the float of a public company, the marginal buyer and seller is going to have more impact on the stock price. The marginal buyer and seller today is a Citadel or a Millennium… they operate with a large amount of leverage, very large gross books of capital, and they're increasingly short-term… Most investors today are very short-term focused because they're compensated that way… they won't invest in a company unless they're confident the price is going to be higher on December 31st." —Bill Ackman, Holy Grail of Investing Podcast, September 8, 2026¹

October_Graph_Updated

As of 10/28/2026 (Source: https://x.com/crescatkevin/status/2116571160934756731)

INDIVIDUAL CONTRIBUTORS

Range Resources (RRC). Shares of the natural gas and natural gas liquids producer surged after EQT agreed to acquire the company in an all-stock deal. Strong quarterly results and positive investor sentiment around natural gas further supported the stock.

Lamb Weston Holdings (LW). The frozen food producer saw its stock jump higher after quarterly results beat expectations, and the company raised its fiscal year 2027 outlook.

Keurig Dr Pepper (KDP). The company announced a strong quarter, beating expectations across multiple metrics. Investors grew more confident in the company’s decision to separate into beverage and coffee companies, also pushing the stock higher during the month.

ExxonMobil (XOM). Exxon shares posted another month of solid performance on higher oil prices and strong refining margins. Additionally, the company announced a $20 billion buyback plan for 2027.

Other notable contributors in the long portfolio included Visa (V), Essential Utilities (WTRG), and Vail Resorts (MTN). Within our short book, several speculative technology and AI names we have scrutinized historically experienced significant declines. Key contributors among this group included CoreWeave (CRWV), IonQ (IONQ), Credo Technology (CRDO), Astera Labs (ALAB), Western Digital (WDC) and AppLovin (APP).

DETRACTORS

Our gold and silver miners were the main detractors in October as the price of gold retreated. Elevated inflation caused investors to worry about a more hawkish Fed. As a group, our positions in Hecla Mining (HL), Alamos Gold (AGI), Barrick Mining (B) and Newmont (NEM) weighed on performance for the month. However, our thesis holds, and we remain constructive on these companies amid persistent government deficits and money printing. We took the opportunity to selectively add to some of our positions.

“We view the recent selloff as a period of consolidation within an ongoing bull market in precious metals.” —Haywood Securities, quoted in MINING.COM, October 27, 2026²

SLM Corp (SLM). Sallie Mae stock traded lower during the month after the company announced lackluster quarterly results and lowered its full-year guidance. Management chose not to complete a previously planned whole-loan sale after determining that market pricing failed to meet its return threshold, and it chose to retain the loans instead. We continue to believe in the long-term case for SLM, and the company has consistently returned capital to shareholders through buybacks and dividends.

NOTABLE ACTIVITY

S&P Global (SPGI). We initiated a long position in S&P Global, a leading provider of credit rating services, indexes, and market data. The company holds a strong competitive position with high barriers to entry for its business, and it generates durable recurring revenue. In addition to its strong quarterly results, we believe the company will further benefit from increasing debt issuance and demand for market data. S&P Global reaffirmed expectations to return more than $7 billion to shareholders through buybacks in 2026.³

Rigetti Computing (RGTI). We took gains and covered our short position in Rigetti Computing after short interest in the stock grew beyond 20%. Our risk management process places a threshold on short interest to avoid being caught in “squeezes”.

LOOKING AHEAD

As of the end of October, we are only 3% off the all-time highs on the S&P 500:

October Graph 2

As of 11/1/2026 (Source: https://x.com/biancoresearch/status/2116887789790982346)

We remain constructive but disciplined looking ahead. History suggests volatility often rises around midterm elections, and with so much of the AI infrastructure buildout dependent on government policy, we think tradition will hold. Equity supply is also building. 2026 is on pace for record issuance in dollar terms, and a potential mega-IPO from Anthropic is expected before year-end. Large new listings test investor appetite for AI exposure, and their outcome bears directly on the AI financing story we have been watching. We will keep favoring hard assets, shareholder yield and special situations where we believe the market misprices deal dynamics, while maintaining short exposure to what we see as excesses in AI-related and over-leveraged businesses.

“2027 is going to be a very challenging year for the market.”
“Right now feels exactly like 1999, for me it’s just so clear that we’re on this path that could be great short term but may not be so great long term… I forget that so many people haven’t lived this… I’m sure in ’27, at some point, I’ll be short the whole year. There just — there’s little value… Well, again, if you go back to 2000, you had all this issuance, all these IPOs in ’98 and ’99, and really 2000, 2001, 2002. Those were the easiest years to be short because you kept having these unlocks that just kept adding supply to the market.”—Paul Tudor Jones, Squawk Pod, October 13, 2026⁴

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.

Correlation measures the relationship between how the security moves in relation to the market index.

SOURCES
1 https://www.youtube.com/watch?v=aUyvR-NvdBs
2 https://www.mining.com/gold-miners-trade-at-discount-after-selloff-haywood/
3 https://investor.spglobal.com/Quarterly-Earnings/
4 https://www.youtube.com/watch?v=gMIOsOMhy6A

Investing involves risk, including loss of principal.

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 from 833-417-0090. 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.

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 securities of large-capitalization companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion. Investments made in small and mid-capitalization companies may be more volatile and less liquid due to limited resources or product lines and more sensitive to economic factors. 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. 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 is classified as “non-diversified” and may invest a relatively high percentage of its assets in a limited number of issuers. Asa 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.

The Fund's exposure to master limited partnerships (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.

Foreside Fund Services, LLC, Distributor

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.

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