The number of Canadian-listed exchange-traded funds specializing in the marijuana industry is doubling to four this week, with two contrasting strategies being rolled out by competing firms.
Evolve Marijuana (Symbol: SEED), which has a global mandate but starts out investing almost exclusively in Canada, opened for trading today on the Toronto Stock Exchange. It will be managed internally by Toronto-based Evolve Funds Group Inc., whose chief investment officer Kirk Cooper specializes in quantitative investing.
In selecting a portfolio of 25 stocks, Cooper employs quantitative techniques such as ranking stocks according to their short-term price momentum. This is combined with fundamental analysis, as well as risk constraints including ensuring that stocks have sufficient trading liquidity. Up to 10% of the portfolio can be invested in equity securities of unlisted issuers.