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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......................

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