Fri, Jul 19, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

For one cannabis fund, the volatility in pot stocks is a feature not a bug

Monday, July 01, 2019

Bailey McCann, Opalesque New York for New Managers: The cannabis market can be tough to invest in. Many of the opportunities are privately held and the public stocks are prone to volatility. A new firm - Measure 8 - is approaching both the public and private markets with the view that volatility can actually be beneficial to performance. Measure 8 is founded by Boris Jordan, the Chairman of Curaleaf, the largest multi-state cannabis operating company in the US.

Opalesque New Managers spoke with Justin Ort, co-founder and CIO at Measure 8, who says that because the cannabis industry is developing so rapidly, successful investors will want to view volatility as a feature of their investment strategy, not a bug.

"We're extremely bullish on the long-term case for cannabis but the facts are that this is a rapidly developing industry and that's going to lead to some short-term volatility. It doesn't make sense to me then, to build a strategy that isn't prepared to handle that volatility. You can either work with it or be held captive by it," Ort says.

Measure 8 currently runs a long/short cannabis hedge fund and a venture capital fund. Ort calls this a "full spectrum" approach to cannabis investing. The public-private mandate positions the firm to capture opportunities early while the public market is still maturing.

For the hedge fund, Ort is relying on the manageme......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Crypto: U.S. market regulator issues guidance on custody of digital asset securities, Bitcoin's stunning growth makes it investable, admits legendary hedge fund manager, Institutional investments rise with bitcoin volatility. Wait, what?, Can blockchain build a better bank? Experts weigh in - The Ledger, Cryptocurrency startups get partial green light from Washington, Facebook's Libra cryptocurrency faces more backlash, China's central bank developing own digital currency in response to Libra[more]

    U.S. market regulator issues guidance on custody of digital asset securities From Reuters: The U.S. Securities and Exchange Commission (SEC) on Monday issued a notice on broker-dealer custody of digital asset securities, amid industry requests for clarity on whether they can hold such a

  2. PE/VC: Burger King in China and Turkey attracts private equity buyers, China's VC market is said to enter a downturn, VC industry makes slow progress on diversity[more]

    Burger King in China and Turkey attracts private equity buyers From Finance Asia: The world's largest franchisee of the fast-food chain outside the US is on the block. One wealthy Turkish family holds the key to a successful sale. Burger King is back up for sale in China and Turkey

  3. Hedge funds post best first half in decade, Viking Global funds surge, Blue Harbour's double windfall[more]

    Hedge funds post best first half in decade From Bloomberg: Hedge funds reported the best first half since 2009 as equity managers capitalized on the surge in stocks. Funds rose 5.7% from January through June, according to Hedge Fund Research Inc.'s asset-weighted index of managers. Equi

  4. Private real estate fundraising nosedives in 2Q 2019, hitting a five-year low[more]

    Laxman Pai, Opalesque Asia: Private real estate fundraising decreased significantly in Q2 2019 from the previous quarter, hitting a five-year low, Preqin said in its quarterly update on real estate. Forty-seven funds reached a final close, raising just $29bn, which marks a sharp decrease fro

  5. Regulatory: SEC reforms open door to BDC market shakeup, Regulatory rollback: First set of Volcker Rule reforms finalized[more]

    SEC reforms open door to BDC market shakeup From Reuters: The US Securities and Exchange Commission's (SEC) fund of funds proposals potentially open the door to a shakeup in the Business Development Company (BDC) market. Under the existing guidelines, regulated funds are prohibited from