🎙️ Podcast: Poseidon Asset Management — Managing Partner, Morgan Paxhia
Poseidon recently launched an ETF and is currently raising Fund III (Fund I launched in 2014, Fund II launched in 2018). Recent investments include Headset, Birchmount Network, Flowhub, Dispense, C15
Poseidon was founded by siblings Emily & Morgan Paxhia in 2013, making their first fund one of the longest running dedicated cannabis investment funds. The Poseidon team has focused on a diversified strategy covering a range of company stages and industry subsectors across the capital spectrum. I spoke with Morgan Paxhia last week to revisit their funds & performance, the recently launched Poseidon AdvisorShares Poseidon Dynamic Cannabis ETF (PSDN), and more.
Poseidon has 51 Active Positions. Fund I (Structured as a Hedge Fund) launched in January 2014 and has roughly 38 actively managed portfolio companies, 80% Private, 20% Public. Fund I Portfolio Companies includes: Flowhub, wurk, GTI, Flow Cannabis Co, PAX, BastCore, Clever Leaves, Copperstate Farms, Ascend Wellness, Respira Technologies, Headset, Hara (dba Hemper). Fund II (Series A and later) launched in September 2018 and targets investing in 12-15 portfolio company. Fund II Portfolio Companies includes: Headset, Confident Cannabis, Sublime (exited to Harborside), Sparc, Landsteiner Scientific, Groundworks Industries, Ascend Wellness, Flowhub, Respira Technologies, distru, CannaDips, and C15 Solutions.
Fund Performance. Uses Cannabis Industry CAGR ($24.1B 2021E Legal Market, 14% CAGR to reach $47B by 2026, BDSA as of November 2021) as goal for fund performance.
AdvisorShares Poseidon Dynamic Cannabis ETF (PSDN). The ETF launched on 11/16/21. As of 12/1/21, the ETF has $2.7M AUM (vs. $1.1B for MSOS). The ETF currently invests in U.S., Canadian, and Israeli based Cannabis companies and employs 1.5x Leverage. Current top holdings include GTI (13.0%) , Trulieve (10.3%), AWH (7.4%), WM Technology (7.1%) and AYR Wellness (7.1%).
Mastermind. Patrick Rea (joined in May 2021 after leading CanopyBoulder) is heading up the initiative. Mastermind is a collaborative program for cannabis founders, designed to spark collaboration, opening access to networks, key trends and peer-to-peer support. As Poseidon is raising Fund III, the firm continues to increase their value-add.
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