PSDN - AdvisorShares Poseidon Dynamic Cannabis ETF
Intelligent Leverage Investing in Cannabis
PSDN invests in cannabis with the ability to use leverage to boost exposure in specific names in an effort to add alpha.
|Symbol||Exchange||Inception Date||CUSIP||Indicative NAV|
|PSDN||NYSE Arca||11/16/2021||00768Y 354||PSDN.NV|
<strong>What does PSDN invest in?</strong>
<strong>Why Invest in PSDN?</strong>
- Long-term Growth Opportunity – Since its early legalization days, the cannabis industry has grown to nearly $24 billion in global legal sales in 2020 and is estimated potentially grow to $51 billion by 2025.1 Expansion is anticipated in both the adult-use market as legalization increases and the medical-use market as cannabis’ potential benefits and therapeutic applications continue to be discovered and developed.
- Non-Cyclical Consumer Demand – During the height of the COVID-19, most states recognized cannabis businesses as providing an essential service and allowed them to remain open. In fact, during 2020, Americans purchased 71% more cannabis than they did in 2019.2 Similar to alcohol and tobacco products, demand for cannabis shows signs of potential inelasticity, suggesting that the industry may be resilient to economic downturns.
- Deep Cannabis Investing Experience – Founded in 2013 by siblings Emily and Morgan Paxhia, Poseidon Investment Management is one of the earliest and longest running investment firms focused exclusively on the cannabis and hemp industry. The duo’s interest in cannabis is a personal one – it is tied to their parents’ belief in cannabis legalization and the medical benefits it might have provided before both parents succumbed to cancer within a short time of each other. We believe Poseidon’s history of investing in, supporting, and developing the cannabis sector from its infancy through today differentiates it from other managers. The Poseidon team is firmly embedded in the cannabis industry, raising private funds and continuing to deploy capital in more than 60 cannabis, ancillary cannabis, and hemp companies, serving on the Boards of Directors of over 10 cannabis organizations, and being recognized as a leader in the industry.
- Growing Public Acceptance and Legalization – 91% of Americans now favor some form of marijuana legalization (either medical use only or both medical and recreational use), representing a dramatic increase in public support over the last two decades.3 Currently in the U.S., over 35 states and D.C. allow medical cannabis while 19 states and D.C. have legalized recreational marijuana.
<strong>Where Can PSDN Fit in a Traditional Portfolio?</strong>
- Investing Globally – While the U.S. and Canada have led the headlines, cannabis is a global phenomenon: 70 countries around the world have some form of legalized medical cannabis and 10 countries have legalized or decriminalized cannabis for recreational use.1 Large global brands are also taking a stake in the growing cannabis industry – e.g. Constellation Brands, Molson Coors, Altria, and Imperial Brands – as well as institutional investors and celebrities and athletes.
- “Intelligent” Leverage – At the portfolio management’s discretion and to take advantage of opportunities that periodically arise in the cannabis market, PSDN can actively apply moderate levels of leverage (up to 150% of portfolio assets) to increase the portfolio’s exposure to specific high conviction cannabis companies. PSDN’s use of leverage is designed to add alpha to the investment strategy over time, to be used for longer investment time frames, and is not passively applied to the entire portfolio.
- Cannabis Sub-Sector Exposure– While investing exclusively in the in the cannabis and hemp industry, PSDN seeks to diversify its portfolio across cannabis subsectors, such as ancillary products and services, software technologies, biotechnology / pharmaceuticals, internet enabled devices, consumer products, agriculture technologies, as well as multi-state and single state operators, and international licensed producers.
- Active Advantage – The burgeoning cannabis industry can experience rapid change caused by volatility, speculation, evolving legalization, and industry consolidation. To address these events, PSDN takes an active management approach to cannabis investing, allowing it to adjust its portfolio more dynamically than a passive index-based strategy. Active management also allows PSDN to seek opportunities from initial public offerings, potential mergers, or the fast-paced changes that occur in the cannabis industry.
<strong>About the Portfolio Manager</strong>
Emily Paxhia, Co-Founder, Managing Director & Portfolio Manager
Ms. Paxhia co-founded Poseidon Investment Management – one of the first companies dedicated to investing exclusively in the emerging cannabis industry – with her brother in 2013. Since that time, Ms. Paxhia has reviewed thousands of cannabis companies and worked with countless founders to help shape unique market strategies and product launches, advise on day-to-day business operations, and provide investment capital. Extremely active in the investment decision making processes, Ms. Paxhia works closely with her partners on company due diligence to extract actionable insights from research, engage in detailed market analysis, assess company fit and scalability, and create meaningful deal structures. Additionally, Ms. Paxhia has dedicated her time and energy to supporting policy groups, such as the Marijuana Policy Project, and serving on the Board of Directors of Athletes for CARE and The Initiative. Ms. Paxhia received a B.A. in Psychology from Skidmore College in 2002 and an M.A. in Psychology from New York University in 2008.
Morgan Paxhia, Co-Founder, Managing Director & Portfolio Manager
With over fourteen years’ experience in investing and finance, Mr. Paxhia has developed a deep understanding of asset management, including individual company analysis, portfolio construction, and risk mitigation. As a co-founder of Poseidon Investment Management, he has primarily focused on the emerging cannabis industry. Given the limited information and institutional research on the cannabis industry, Mr. Paxhia embraces an active approach of working closely with companies and utilizing a “boots on the ground” methodology to better understand individual companies and the industry. Traveling extensively across the U.S. and Canada, reviewing hundreds of business plans, and overseeing several existing cannabis funds’ investments, Mr. Paxhia has developed Poseidon’s investment methodology, tailored specifically to the business of cannabis. He has created frameworks for analysis depending on sub-sector, company stage, and participation across the capital spectrum through a database of contacts, valuations, metrics, industry and market data, and other relevant factors. Mr. Paxhia started his investment career at UBS Financial Services in Wealth Management/ Investment Banking. Following his tenure at UBS, Morgan transitioned to a Rhode Island-based registered investment advisor working with the partners of the firm on fundamental portfolio management. Morgan received a B.S. in Applied Mathematics from the University of Rhode Island in 2005.
Tyler Greif, Managing Director & Portfolio Manager
Mr. Greif possesses nearly 21 years of experience as an investor in both the public and private markets. He began his career in 2000, having worked at Goldman Sachs as an investment banker in the Mergers and Acquisitions group in New York City. Following his tenure at Goldman Sachs, he joined PSAM, a hedge fund also based in New York City. Throughout his eight-year tenure at PSAM, Mr. Greif researched and invested in numerous companies and was promoted to Vice President. Mr. Greif took an active role in many of the investments, having served in the capacity of Co-Chairman of the Official Creditors Committee in the Dana Corporation restructuring process and on numerous ad hoc creditor committees. In 2010, Mr. Greif founded and served as Chief Executive Officer of Proven Fields Oil & Gas, an energy-focused private equity fund, which acquired, developed and managed oil and gas assets in multiple U.S. states. After leading the successful sale of most of the assets of Proven Fields, Mr. Greif launched a new investment and advisory firm named HomeBase, which both invests in and provides outsourced CFO advisory, accounting and bookkeeping services to venture-stage companies. Mr. Greif is an investor in and serves on the Board of Vicunita Minerals UK Limited, a company focused on gold mining in Peru, and as Chief Investment Officer of EdgeHill Venture Partners. Mr. Greif received a B.B.A. from Emory University in 2000.
PSDN Overview from Emily Paxhia
Get an introduction to the PSDN ETF directly from the portfolio manager, Emily Paxhia.
PSDN Overview from Emily Paxhia
Get an introduction to the PSDN ETF directly from the portfolio manager, Emily Paxhia.
|4PM Bid/Offer Midpoint||$7.94||Premium Discount||$0.08|
|Assets Under Management||$2,712,259.90||30-Day Median bid-ask Spread||-|
Shares are bought and sold at market price (closing price) not NAV and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined), and do not represent the return you would receive if you traded at other times.
PSDN Market Capitalization
Source: Morningstar & AdvisorShares
PSDN Regional Allocation
|Date||Account Symbol||Stock Ticker||Security Number||Security Description||Shares/Par (Full)||Price (Base)||Traded Market Value (Base)||Portfolio Weight %||Asset Group|
|12/01/2021||PSDN||GTBIF||GTBIFTRS||GREEN THUMB INDUSTRIES SWAP REC||17,850.00||19.82||353,785.22||13.04%||TW|
|TCNNF||TCNNFTRS||TRULIEVE CANNABIS SWAP REC||10,700.00||26.09||279,163.00||10.29%||TW|
|AAWH||AAWH TRS||ASCEND WELLNESS HOLDINGS SWAP REC||34,769.00||5.75||199,921.75||7.37%||TW|
|MAPS||92971A109||WM TECHNOLOGY INC||28,590.00||6.77||193,554.30||7.14%||S|
|AYRWF||AYRWFTRS||REC AYR WELLNESS INC||12,346.00||15.59||192,474.14||7.10%||TW|
|CRLBF||CRLBFTRS||CRESCO LABS INC SWAP REC||21,423.00||8||171,384.00||6.32%||TW|
|TRSSF||TRSSFTRS||TERRASCEND CORP SWAP REC||26,825.00||6.05||162,291.25||5.98%||TW|
|CURLF||CURLFTRS||CURALEAF HOLDINGS INC SWAP REC||16,600.00||8.97||148,902.00||5.49%||TW|
|TPB||90041L105||TURNING POINT BRANDS INC||3,864.00||37.01||143,006.64||5.27%||S|
|SMG||810186106||SCOTTS MIRACLE-GRO CO||1,030.00||138.22||142,366.60||5.25%||S|
|JUSHF||JUSHFTRS||JUSHI HOLDINGS INC SWAP REC||36,500.00||3.81||139,065.00||5.13%||TW|
|VRNOF||VRNOFTRS||VERANO HOLDINGS CORP SWAP REC||13,400.00||10.1||135,340.00||4.99%||TW|
|HYFM||44888K209||HYDROFARM HOLDINGS GROUP INC||4,140.00||29.22||120,970.80||4.46%||S|
|CCHWF||CCHWFTRS||COLUMBIA CARE INC SWAP REC||37,100.00||3.04||112,784.00||4.16%||TW|
|PLNHF||PLNHFTRS||PLANET 13 HOLDINGS SWAP REC||25,900.00||3.5||90,520.50||3.34%||TW|
|AFCG||00109K105||AFC GAMMA INC||3,588.00||21.08||75,635.04||2.79%||S|
|VFF||92707Y108||VILLAGE FARMS INTERNATIONAL||10,143.00||6.23||63,190.89||2.33%||FS|
|SNDL||86730L109||SUNDIAL GROWERS INC||97,497.00||0.57||55,134.55||2.03%||FS|
|IIPR||45781V101||INNOVATIVE INDUSTRIAL PROPER||207||250.28||51,807.96||1.91%||S|
|IMCC||44969Q208||IM CANNABIS CORP||13,869.00||3.57||49,512.33||1.83%||FS|
|HITI||42981E401||HIGH TIDE INC||7,176.00||5.96||42,768.96||1.58%||FS|
|TLRY||88688T100||TILRAY INC-CLASS 2 COMMON||4,347.00||9.27||40,296.69||1.49%||S|
|CRON||22717L101||CRONOS GROUP INC||8,970.00||4.21||37,763.70||1.39%||FS|
|CGC||138035100||CANOPY GROWTH CORP||3,657.00||9.94||36,350.58||1.34%||FS|
|CLVR||186760104||CLEVER LEAVES HOLDINGS INC||7,797.00||4.33||33,761.01||1.24%||FS|
|GNLN||395330103||GREENLANE HOLDINGS INC - A||27,117.00||1.13||30,642.21||1.13%||S|
|X9USDBLYT||BLACKROCK TREASURY TRUST INSTL 62||213,446.39||1||213,446.39||7.87%||MM|