The Leatherback Long/Short Alternative Yield ETF (LBAY) (the “Fund”) net asset value (NAV) advanced by 4.91% in June, compared to 6.61% for the S&P 500 Index. LBAY paid its thirty-first consecutive monthly distribution, at $0.075 per share in June. This is a 2.54% SEC yield versus the S&P 500 Index dividend yield of approximately 1.55%, and the 10-Year US Treasury yield of 3.84%. Year to date as of June 30, 2023, NAV for the Fund has declined 8.55%, compared to an advance of 16.89% for the S&P 500 Index. NAV performance for the Fund to date since inception (November 16, 2020) has produced a 42.96% cumulative total return and a 14.62% annualized total return.
I think that this is an extraordinarily dangerous and confusing period…Valuations are still very high…There’s a significant chance of recession. We see the possibility of a lengthy period of low returns in financial assets, low returns in real estate, corporate profits, unemployment rates higher than exist now and lots of inflation in the next round.” – Paul Singer
*Definitions: Duration measures a bond's or fixed income portfolio's price sensitivity to interest rate changes. Cash flow is the net amount of cash generated by a company, with cash received as an inflow, and cash spent as an outflow. Alpha-generation refers to a strategy that seeks to generate excess returns or value without additional risk.
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.
3 The NASDAQ-100 Index includes 100 of the largest domestic and international non-financial companies listed on The NASDAQ Stock Market based on market capitalization. The Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. Indexes are unmanaged and it is not possible to invest in an index
4 Source: @biancoresearch, July 3, 2023
5 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.
Bill Priest quote source: https://www.barrons.com/
Paul Singer quote source: https://www.wsj.com/
Opinions expressed are subject to change at any time, are not guaranteed, and should not be considered investment advice.