• Connect with us
    • Information
      • About Us
      • Contact Us
      • Careers
      • Partnerships
      • Advertise With Us
      • Authors
      • Browse Topics
      • Events
      • Disclaimer
      • Privacy Policy
    • Australia
      North America
      World
    Login
    Investing News NetworkYour trusted source for investing success
    • North America
      Australia
      World
    • My INN
    Videos
    Companies
    Press Releases
    Private Placements
    SUBSCRIBE
    • Reports & Guides
      • Market Outlook Reports
      • Investing Guides
    • Button
    Resource
    • Precious Metals
    • Battery Metals
    • Base Metals
    • Energy
    • Critical Metals
    Tech
    Life Science
    Cannabis Market
    Cannabis News
    Cannabis Stocks
    • Cannabis Market
    • Cannabis News
    • Cannabis Stocks
    cannabis investing

    Don’t Expect More Cannabis Funds, Says Portfolio Manager

    Bryan Mc Govern
    Jan. 31, 2019 04:30PM PST
    Cannabis Investing News
    Cannabis Investing

    Nawan Butt, portfolio manager with Purpose Investments, says there is no more space for cannabis-centric funds right now.

    A portfolio manager doesn’t expect to see additional marijuana-centered funds due to lack of demand.

    Nawan Butt, portfolio manager with Purpose Investments, told the Investing News Network (INN) despite the success of managed funds with a direct focal point in pot stocks, he isn’t sure there is a lot of money available for more funds.

    “There’s really no more flow of money into the space right now, everyone seems to have just paused,” he said.

    Butt described the landscape of marijuana funds as “limiting” when asked about the possibility of Purpose Investment launching a second fund in addition to its Purpose Marijuana Opportunities Fund (NEO:MJJ).

    “I don’t think there’s enough demand, just right now,” the portfolio manager said. However, one catalyst that he expects could change this outlook is the legalization of cannabis in the US.

    With the growth and establishment of the marijuana landscape, the potential entry of institutional investors has intrigued companies and observers of the market.

    He told INN Purpose Investment has noticed “a lot more institutional investment behind marijuana.” Butt highlighted the entry of California Public Employees’ Retirement System.

    Despite this move, Butt said serious institutional money won’t make a move until the US clears its federal illegality issue.

    The entry from institutional money into the cannabis public market could also allow for the volatile marijuana space to slow down, according to Butt.

    He still expects volatility to continue as the early entry is not going to “materially” impact the unpredictability of the sector.

    When evaluating the current sentiment of investors, Butt said the preference has moved towards US multi-state operators.

    These companies operate in legal states and own assets to the marijuana market such as cultivation facilities, networks of dispensaries, brands and other product lines.

    “What we’ve done is become more aggressive on the US cannabis names, just the past five to six months rather than focus on the Canadian [licensed producers] LPs,” he said.

    “Generally speaking we do like the States more and more but you do have to be more careful when you invest into the States.”

    Don’t forget to follow us @INN_Cannabis for real-time news updates!

    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.

    cannabis investing
    The Conversation (0)

    Go Deeper

    AI Powered
    Cannabis Outlook

    Cannabis Outlook

    How to Invest in a Cannabis Stock

    How to Invest in a Cannabis Stock

    Latest News

    More News

    Outlook Reports

    Resource
    • Precious Metals
      • Gold
      • Silver
    • Battery Metals
      • Lithium
      • Cobalt
      • Graphite
    • Energy
      • Uranium
      • Oil and Gas
    • Base Metals
      • Copper
      • Nickel
      • Zinc
    • Critical Metals
      • Rare Earths
    • Industrial Metals
    • Agriculture
    Tech
      • Artificial Intelligence
      • Cybersecurity
      • Gaming
      • Cleantech
      • Emerging Tech
    Life Science
      • Biotech
      • Cannabis
      • Psychedelics
      • Pharmaceuticals

    Featured Cannabis Investing News Stocks

    extractX

    More featured stocks

    Browse Companies

    Resource
    • Precious Metals
    • Battery Metals
    • Energy
    • Base Metals
    • Critical Metals
    Tech
    Life Science
    MARKETS
    COMMODITIES
    CURRENCIES
    ×