Marijuana prohibition is a big opportunity for a few funds

A few dedicated funds are
capitalizing on marijuana prohibition in a big
way.
Anthony
Bolante/Reuters

• Marijuana
  is one of the fastest-growing industries in the US. It’s also
  illegal.
• Federal prohibition has given rise to a number of
  dedicated funds that
   are looking to
  capitalize on the “short window” of opportunity before
  institutional investors start writing checks.
• Investors who are patient and willing to take on the
  risk stand to make huge gains. 

Legal marijuana is one of the fastest-growing industries
in the US. It generates hundreds of millions in tax revenue in
states where selling
the drug is legal, and it’s expected to become a
$32 billion global market in the next four years. It’s also
considered illegal by the federal government.

But for a few cannabis-specific
funds, federal marijuana
prohibition is the opportunity of a lifetime. 

While many of the biggest Wall Street banks and
institutional investors may want to do business in the cannabis
industry, their limited partners — typically large pension funds
or insurance companies — are spooked by federal
prohibition. 

Jon Trauben, a partner at the New York City-based Altitude
Investment Management, which manages around $25 million,
told Business Insider in a recent interview that the firm is
taking advantage of that short “window of opportunity” to invest
in marijuana before prohibition recedes and the big institutional
players jump into the sector.

“It’s unique, timely, and you can’t ignore it,” Trauben
said. …

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