The Leatherback Long/Short Alternative Yield ETF (LBAY) (the “Fund”) net asset value (NAV) advanced by 4.29% in March, compared to 3.71% for the S&P 500 Index. LBAY paid our sixteenth consecutive monthly distribution, at $0.065 per share in March. This is a 2.63% SEC yield versus the S&P 500 Index dividend yield of approximately 1.37%, and the 10-Year US Treasury yield of 2.341%. Year to date as of March 31, 2022, NAV for the Fund has returned 11.67%, compared to a decline of 4.60% for the S&P 500 Index. NAV performance for the Fund to date since inception (November 16, 2020) has produced a 42.64% cumulative total return and a 29.6% annualized total return.
I call it the Rule of Three. If you read a company’s financial statements three times, and you still can’t figure out how they make their money, that’s usually for a reason.” – Jim Chanos
*Definitions: A basis point is one hundredth of one percent. One basis point is 0.01%. Enterprise Value (EV) is a measure of a company’s total value, and includes market capitalization, cash, and debt. EV/Revenue multiple is the Enterprise Value to trailing 12-month sales ratio. Price to Earnings (P/E) Multiple is the ratio for valuing a company that measures current share price divided by its reported earnings per share. Diluted shares outstanding refers to the number of common shares of a company outstanding if all possible sources of conversion were exercised. Generally Accepted Accounting Principles (GAAP) are common standards of accounting to ensure consistency in financial reporting. Net Income is a company’s revenue minus costs and expenses, including depreciation, interest, taxes, and other expenses, and may be an indicator of profitability. Earnings per Share Estimate is a company’s expected future annual earnings per share, as estimated by professional analysts. Forward Price to Earnings Multiple is the ratio for valuing a company that measures current share price divided by its forecasted earnings per share.
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.
3Source: http://www.lazyportfolioetf.com/ April 14, 2022
4Source: Bloomberg. The Bloomberg US EQ:FI 60:40 Index is designed to measure cross-asset market performance in the US. The index rebalances monthly to 60% equities and 40% fixed income. The equity and fixed income allocation is represented by Bloomberg US Large Cap and Bloomberg US Agg respectively.
5Source: Bloomberg. The Bloomberg Global Aggregate Index is a flagship measure of global investment grade debt from twenty-four local currency markets. This multi-currency benchmark includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers. The Bloomberg US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate pass-throughs), ABS and CMBS. The Bloomberg US Treasury Index measures US dollar-denominated, fixed-rate, nominal debt issued by the US Treasury. Treasury bills are excluded by the maturity constraint, but are part of a separate Short Treasury Index. STRIPS are excluded from the index because their inclusion would result in double-counting. The Bloomberg US Municipal Index covers the USD-denominated long-term tax exempt bond market. The index has four main sectors: state and local general obligation bonds, revenue bonds, insured bonds and prerefunded bonds. The Bloomberg US Corporate Bond Index measures the investment grade, fixed-rate, taxable corporate bond market. It includes USD denominated securities publicly issued by US and non-US industrial, utility and financial issuers. The Bloomberg US Mortgage Backed Securities (MBS) Index tracks fixed-rate agency mortgage backed pass-through securities guaranteed by Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). The index is constructed by grouping individual TBA-deliverable MBS pools into aggregates or generics based on program, coupon and vintage. The Bloomberg US Corporate High Yield Bond Index measures the USD-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody's, Fitch and S&P is Ba1/BB+/BB+ or below. Bonds from issuers with an emerging markets country of risk, based on Bloomberg EM country definition, are excluded.
7Source: Barron’s, April 1, 2022
8Source: https://www.wsj.com/, April 17, 2022
9Source: Bloomberg, April 14, 2022
10View LBAY top 10 holdings here. 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.
11Source: https://investors.broadcom.com/, March 2022