A famous short seller is considering starting a cannabis fund

Andrew
Left

Bloomberg

• Citron Research founder, Andrew Left said he’s considering
  creating a fund dedicated to the cannabis sector aimed at taking
  both long and short positions,
  BNN Bloomberg reported.
• The fund would begin with Canadian listed-pot companies and
  transition to more US based firms if they could be listed in US
  exchanges within a 24 month period.
• He said the fund could have an estimated value in hundreds of
  millions of dollars, and could be finalized by the end of the
  year.“The reason why I’m thinking of putting a vehicle together
  for trading these stocks is because it will allow investors to
  trade with someone who has experience short selling,”
  Left told Bloomberg.

Andrew Left, one of the most famous short sellers on Wall Street
is looking to play both sides of the cannabis market.

Left,founder and executive editor Citron Research said that
he’s considering creating a fund dedicated to the the cannabis
sector, which would be aimed at taking both long and short
positions on marijuana stocks,
BNN Bloomberg reported.

Left said the fund would begin with Canadian listed pot
companies, and then move to more US based companies if they are
able to list on US exchanges over a 24 month period. He added
that the fund could be finalized by the end of the year and
estimated it could be valued in the hundreds of millions of
dollars.

“The reason why I’m thinking of putting a vehicle together for
trading these stocks is because it will allow investors to trade
with someone who has experience short selling,” Left told
Bloomberg.

“You have to imagine. What you’re seeing right now [in the
cannabis sector] is that all these are Canadian companies. What
happens on the next wave when U.S. companies go public. Oh my
God,” he added.

The New York Times has described Left as “The Bounty Hunter of
Wall Street,” and Bloomberg reported that he has a history of
finding Canadian firms he thinks are overvalued or engaged in
fraud, and targeting them.

“Right now, it’s a game,” he said of the industry. “Once it stops
being a game and people want to see numbers, everything changes.”

But Left still sees value in some Cannabis companies, especially
those producing cannabidiol, a non-psychoactive chemical found in
marijuana plants.  

“The sector is overvalued, no doubt, but that’s not the question.
The question is how long can it stay overvalued and that’s where
having a short-seller — working with a professional — is more
important than doing it yourself,” Left told Bloomberg.