The U.S. cannabis industry is one of the fastest-growing and has already produced some of the largest cannabis companies in the world. The industry is evolving fast and it is important to diversify and focus on only the high-quality names. Given the nascent nature of the U.S. cannabis sector, we have observed a high level of company-specific risks. Thus, the basket approach helps mitigate company-specific execution risks and provides better exposure to the secular trend of increasing acceptance of cannabis.
Introduction
Most U.S. cannabis companies focus on either a multi-state model or a single market