ETF manager Dan Ahrens discusses his optimism for US-based cannabis operators in the lead up to potential federal changes.
US-based multi-state operators (MSOs) performed well during Q1, but one fund manager believes that hasn’t been reflected in their share prices.
The Investing News Network (INN) caught up with Dan Ahrens, chief operating officer and portfolio manager at AdvisorShares, to discuss the most recent operating period in the cannabis sector.
Ahrens is a big supporter of the US cannabis investment story, and follows the sector daily thanks to his role as manager of the AdvisorShares Pure Cannabis ETF (ARCA:YOLO) and the AdvisorShares Pure US Cannabis ETF (ARCA:MSOS).
“We’ve seen the Canadian (licensed producers) be really hot stock performance-wise, outpacing the US (MSOs), and I’ll say it’s rather nonsensical to me,” said Ahrens.
The exchange-traded fund manager has long been a proponent of US operators, which he believes are superior compared to the big-name Canadian cannabis companies out there.
In his eyes, investors are still failing to grasp the upside attached to US names.
From Q4 2020 to Q1 2021 Ahrens has been surprised to see Canadian producers outperform US MSOs in the stock market. “I don’t think it makes sense and I don’t think it’s going to last,” he said.
Ahrens saw optimism about US federal legalization rise in the wake of Joe Biden becoming president and the Democrats winning the Senate. But he believes the market should be prepared for any formal federal policy changes for cannabis to take time.
“People are learning the hard way that politicians have to be politicians … I never felt we were going to have any kind of nationwide legalization,” he told INN.
Last year, Ahrens published a book called “Investing in Cannabis: The Next Great Investment Opportunity.” It covers the ways cannabis investments have taken over in the stock market.
Watch the interview above for more information about cannabis investing from Ahrens.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.