More Pension Funds Warming Up to Cannabis-Linked Stocks
More than a dozen public pension funds across the United States are investing in the cannabis industry indirectly through a San Diego-based real estate investment trust (REIT), Marijuana Business Daily reports. That’s a positive sign for marijuana stocks, experts say.
“Pension funds typically invest with a long-term horizon and are viewed by many companies as ‘sticky money’ that doesn’t move in and out of stocks frequently,” Craig Behnke, equity research analyst at Marijuana Business Daily explained.
“A rising investment appetite from investors with long-term outlooks could have positive benefits such as serving to de-risk early stage cannabis investing through more stable and consistent exit opportunities.”
We’ve also seen pension funds pull their money out of controversial assets, so the willingness to invest in cannabis demonstrates increasing normalization of the product.
The California State Teachers Retirement System is among those investing in Innovative Industrial Properties, which leases space to medical cannabis operators.
Last year, it was revealed that the nation’s largest pension fund, CalPERS, had invested in cannabis company Tilray.