Greg Taylor, Portfolio Manager, Purpose Investments, discusses the advantages of taking an active approach in the Marijuana sector.
We caught up with Greg Taylor at the inaugural Inside ETFs Canada conference in Montreal.
"This is going an interesting time for the Canadian Cannabis sector. The stocks have all been rocketships over the last year, and have gone up , many two- or three-fold, and what I think we're going to see now as we go into the period of legalization, is that people [the companies] actually have to start delivering. I think that's got a lot of companies kind of afraid right now," says Taylor.
"So as we move closer to the legalization date, which is going to be the end of October, I think over the summer you're going to hear people talking about consolidation. You're going to see a lot of the L.P.s get together, because the big concern in the industry is there's not going to be any supply once they launch the retail strategy."
Our conversation continues into greater details about the opportunity in the sector, and of how it is suited to an active investing approach because of its inefficiency.
Taylor discusses his strategy of exploiting inefficiency and volatility in certain pockets of the market, particularly those that do not have a lot of financials, such has junior golds and junior resources, technology focused innovation in all sectors, and finally resource stocks, which are notorious for not being able to be quant screened.
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