Poseidon Asset Management is dedicated to providing a portfolio focused on the cannabis industry that allows investors to grow with the company.
Morgan Paxhia, co-founder and managing partner of Poseidon Asset Management, appeared on Benzinga's YouTube show "Cannabis Insider" for an exclusive interview Tuesday.
Paxhia told Benzinga that Poseidon was an early investor in Aphria, which merged with Tilray Inc TLRY. Green Thumb Industries Inc GTBIF remains one of the company's largest positions, he said.
The company also holds a large position in Terrascend Corp TRSSF and Ascend Wellness Holdings Inc AAWH, which Paxhia said is an exciting company with an incredible growth trajectory.
Poseidon is actively investing in multiple different cannabis companies, he said, adding that "it's an amazing time to be in cannabis."
Industry Outlook: Capital flows for funds trailed off and many other companies were unable to raise sufficient capital to launch multiple funds, Paxhia said. He told Benzinga that he feels "very lucky" Poseidon was able to raise three funds in total.
Most public cannabis companies are trading at a relatively cheap valuation currently, he noted.
Cannabis News: Democrats in the U.S. Senate unveiled a proposal to federally decriminalize marijuana on Wednesday.
There is plenty of good intention in the proposal, Paxhia said, but "we need action."
Targeted action is essential to broadening access to the cannabis industry, he added. Paxhia believes that the Secure and Fair Enforcement (SAFE) Banking Act should remain the center of focus until it is passed.
On April 19, the U.S. House of Representatives passed the SAFE Banking Act. If the Senate were to pass the bill, the SAFE Banking Act would allow financial institutions to provide services to cannabis clients without having to worry about incurring federal penalties.
Paxhia told Benzinga that he is hoping that the recent developments on marijuana decriminalization trigger action on the SAFE Banking Act.
For now, Posiedon is focused on investing in good companies with good people who are driving the industry forward, he said. "Ultimately, we will get there with regulations."
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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