Poseidon Investment Management announced the launch of the AdvisorShares Poseidon Dynamic Cannabis ETF (Ticker: PSDN). The PSDN ETF began trading on Wednesday, November 17, 2021, is sponsored by AdvisorShares. It will be sub-advised and managed by the Poseidon team, including co-founders and Managing Directors Emily Paxhia and Morgan Paxhia and Managing Director Tyler Greif. Poseidon is one of the earliest cannabis investing teams that has $196 million in assets under management as of August 2021.
“Poseidon was one of the first investment firms dedicated to cannabis investments, navigating this complex and evolving industry to help companies grow and thrive from startups to public companies,” said Emily Paxhia, co-founder and Managing Director of Poseidon, and Portfolio Manager of PSDN. “Our track record speaks to our deep knowledge of the space and our commitment to understanding the needs of the companies we invest in. PSDN broadens the reach of our unique investment philosophy and provides simple, secure, accessible investing into one of the world’s most exciting asset classes.”
ETF’s Have Underperformed
Poseidon will have their work cut out for them. Cannabis ETF’s have mostly underperformed this year as the underlying stocks have been wallowing in a seeming never ending bear market. AdvisorShares Pure US Cannabis ETF (Ticker: MSOS) reached a year high of $55 but was lately selling shares at $30, while AdvisorShares Pure Cannabis ETF (Ticker: YOLO) hit a year’s high of $31 and was recently selling its shares at $16. The Cannabis ETF (THCX) also topped out this year at $30 and was lately selling at $12 a share.
Poseidon said that the fund will try to identify companies strategically positioned to benefit from the cannabis industry and its supporting infrastructure in the U.S. and emerging global cannabis markets. PSDN’s portfolio is diversified across subsectors of the cannabis industry and dynamically managed to tactically overweight or underweight specific countries, subsectors, or individual companies. PSDN said it may seek to take advantage of specific market opportunities by intelligently using leverage to maximize potential returns. If the values of the underlying stocks start to recover, the PSDN’s timing could be quite good.
“We are excited to partner with an established and experienced team like Poseidon to bring their institutional portfolio management approach into the mainstream investment infrastructure,” said Noah Hamman, chief executive officer of AdvisorShares. “Active ETFs in the cannabis space continue to gain traction with investors seeking to access managers with proven success records in the fast-growing, dynamic industry.”