Canada-based hedge fund manager Anson Funds, primarily known for its wagers against stocks, is happy to play the waiting game on the US marijuana market after establishing a “very long” position on the sector, according to a report by Bloomberg.
The US Marijuana Index slumped 70% in 2022, but in an investor letter in January, Anson said it intends to maintain its current positions despite the “volatile journey” ahead.
To date, 21 US states have legalised recreational cannabis, but it remains illegal under federal law with the US Senate still to approve the Secure and Fair Enforcement Banking Act, which protects banks that serve legitimate cannabis-related businesses, which was passed by the US House of Representatives in 2021.
“I don’t need to make money on something today, if I know in two, three years it’s going to go up 400%, 500%,” said Moez Kassam, the firm’s co-founder and chief investment officer in an interview with Bloomberg.
Anson’s long-short fund was up 7.6% last year, bringing gains to around 100% in the past three years.
