Business Insider: Hedge Fund Legend Invests in Cannabis
Leon Cooperman may not be a household name, but the man labeled a “hedge fund legend” by Business Insider has a net worth of over $3 billion. And he’s the latest big investor publicly revealed as investing in the cannabis industry. Cooperman, the CEO of Omega Advisors, made a personal investment in Green Thumb Industries, as reported by Business Insider:
Hedge fund billionaire Leon Cooperman is investing in the marijuana industry. He’s the biggest name so far to purchase stock directly in a marijuana cultivator.
Cooperman posed a series of detailed questions to Green Thumb Industries (GTI) CEO Ben Kovler during the company’s Q2 earnings call on Tuesday afternoon. GTI is a publicly-traded chain of marijuana dispensaries, cultivators, and distributors with licenses to operate in a number of states where marijuana is legal.
“I’m investing because I’m a fan of Ben’s,” Cooperman told Business Insider over the phone. “I think he’s doing a great job.”
According to Marijuana Business Daily, Green Thumb Industries has performed well recently:
Green Thumb reported revenue of $13.6 million in the second quarter, a nearly 300% increase year-over-year.
Quarter-over-quarter revenue was up 25% compared with the first quarter’s $10.9 million.
Net income for the quarter was roughly $400,000, up significantly from a first-quarter loss of $1.6 million.
The multi-billionaire Cooperman is just the latest big name making a splash by investing in cannabis, following a Wrigley Chewing Gum heir and alcohol-giant Constellation Brands, among others. A hedge fund legend joining the growing mainstream investor class willing to bet on cannabis is a great sign for the short-term surge that cannabis stocks are enjoying and the long-term viability of the market as a whole. While the future is uncertain, it is a safe bet that more major investors will be following suit.
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