| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 20.5% | 6.7% |
| 2025 | 2024 |
|---|---|
| 6.7% | 65.6% |
The Mindset Value Wellness Fund delivered 20.5% net returns in Q4 and 6.7% for 2025, marking three consecutive years of positive performance while the primary cannabis index MSOS declined 32% over the same period. The fund has generated 200% returns since 2023 by focusing on companies with sustainable cost advantages in a structurally inefficient market characterized by minimal institutional participation and limited quality research. Portfolio performance was driven by three top-performing cannabis companies: Glass House Brands, Grown Rogue, and Vireo, which generated CAGRs of 67.46%, 67.45%, and 55.6% respectively. President Trump's executive order directing cannabis rescheduling to Schedule III represents a historic federal policy shift expected to complete in the first half of 2026. The manager views this as the beginning rather than end of opportunities, with the cannabis industry experiencing widespread distress creating acquisition opportunities for operators with cost advantages. The fund is positioning for the next three years with focus on cost control, operational excellence, and capital discipline while pursuing new transactions offering attractive yield and equity upside.
Cannabis offers tremendous alpha due to structural inefficiencies, and the fund focuses on companies with durable cost advantages and compelling special situations while federal reform creates the beginning of a multi-year opportunity.
Reform marks the start of the game, not the end. The manager sees a long runway of growth and a robust opportunity set ahead. The next three years could be even more compelling than the past three years.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 29 2026 | 2025 Q4 | GLASF, GRUSF, VREOF | alpha, Cannabis, Cost Advantages, distressed, Federal Reform, growth |
GLASF GRUSF |
Cannabis investing offers tremendous alpha due to structural inefficiencies including minimal institutional participation, limited quality research, and lack of focus on unit-level economics. The fund… |
| Oct 24 2025 | 2025 Q3 | VREO CN | Cannabis, Hemp, Legalization, Reform, small caps |
VREOF GLASF CAN VREOF GLASF CAN |
The fund gained 10.2% in Q3, driven by improving sentiment around U.S. cannabis legalization and strong private investment performance. Managers highlight federal reform momentum as… |
| Jul 31 2025 | 2025 Q2 | BRND/U CN, HQI | catalysts, small caps, special situations, turnaround, valuation |
HQI TBI GLASF NNI |
The letter centers on catalyst-driven value investing, highlighting situations where operational improvements, regulatory shifts, or strategic actions can unlock mispriced assets. Management stresses disciplined reassessment… |
| May 2 2025 | 2025 Q1 | BRND/U CN, GRIN CN | - | - | - |
| Feb 14 2025 | 2024 Q4 | GRIN CN, VREO CN | - | - | - |
| Nov 20 2024 | 2024 Q3 | GRIN CN, GTII CN, MTH CN, TRUL CN | - | - | - |
| Aug 7 2024 | 2024 Q2 | GRIN CN, PRM, TDG | - | - | - |
| May 15 2024 | 2024 Q1 | BRND/U CN, GRIN CN | - | - | - |
| Jul 2 2024 | 2023 Q4 | GRIN CN, HQI, MRMD | - | - | - |
| Oct 24 2023 | 2023 Q3 | GLHAU, GRIN CN | - | - | - |
| Jul 18 2023 | 2023 Q2 | GRIN CN, HQI | - | - | - |
| Apr 28 2023 | 2023 Q1 | 4KF0 GR, ARA MM, GRIN CN, HQI | - | - | - |
| Oct 2 2023 | 2022 Q4 | ARA MM, AYRWF, BAMM CN, GLASF, GRIN CN, HQI, VRNOF | - | - | - |
| Apr 11 2022 | 2022 Q3 | ARA MM, GLASF, NNI | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
CannabisCannabis investing offers tremendous alpha due to structural inefficiencies including minimal institutional participation, limited quality research, and lack of focus on unit-level economics. The fund has generated 200% returns since 2023 by focusing on companies with durable cost advantages. Federal rescheduling to Schedule III is expected in the first half of 2026, marking the beginning rather than end of opportunities. |
Cannabis Federal Reform Cost Advantages Rescheduling Alpha |
DistressedThe cannabis industry is experiencing widespread distress driven by oversupply, falling prices, and capital scarcity. This creates opportunities for operators with cost advantages to acquire distressed assets and restart defunct facilities at substantially lower capital expenditures with materially higher returns on invested capital. |
Distressed Assets Oversupply Capital Scarcity Consolidation Returns | |
| 2025 Q3 |
CannabisCannabis investing offers tremendous alpha due to structural inefficiencies including minimal institutional participation, limited quality research, and lack of focus on unit-level economics. The fund has generated 200% returns since 2023 by focusing on companies with durable cost advantages. Federal rescheduling to Schedule III is expected in the first half of 2026, marking the beginning rather than end of opportunities. |
Cannabis Federal Reform Cost Advantages Rescheduling Alpha |
Reform |
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Small CapsThe fund invests in a portfolio of competitively advantaged small and medium-sized businesses, which remained out of favor for most of the quarter. The strategy of owning leading small-cap businesses has been the foundation since inception, delivering 354 basis points of annual outperformance over the benchmark since inception despite recent headwinds. |
Growth Outperformance Benchmark Russell Businesses | |
| 2025 Q2 |
Catalysts |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 31, 2025 | Fund Letters | Aaron Edelheit | HQI | HireQuest Inc. | Industrials | Human Resource & Employment Services | Bull | NASDAQ | acquisition, cashflow, franchise, Rollup, Staffing | Login |
| Jul 31, 2025 | Fund Letters | Aaron Edelheit | TBI | TrueBlue Inc. | Industrials | Human Resource & Employment Services | Bull | New York Stock Exchange | acquisition, franchise, Staffing, synergies, turnaround | Login |
| Jul 31, 2025 | Fund Letters | Aaron Edelheit | GLASF | Glass House Brands Inc. | Consumer Staples | Cultivation & Agriculture | Bear | US | Cannabis, Enforcement, Regulation, Risk, Volatility | Login |
| Jul 31, 2025 | Fund Letters | Aaron Edelheit | NNI | Nelnet Inc. | Financials | Consumer Finance | Bull | New York Stock Exchange | AI, growth, Loans, productivity, Servicing | Login |
| Jan 29, 2026 | Fund Letters | Aaron Edelheit | GLASF | Glass House Brands Inc. | Consumer Staples | Cannabis | Bull | Dubai Financial Market | Cannabis, consolidation, Cost advantage, Greenhouse, scale | Login |
| Jan 29, 2026 | Fund Letters | Aaron Edelheit | GRUSF | Grown Rogue International Inc. | Consumer Staples | Cannabis | Bull | Dubai Financial Market | Cannabis, Cost leadership, Distressed assets, growth, Indoor-Cultivation | Login |
| Oct 24, 2025 | Fund Letters | Aaron Edelheit | VREOF | Vireo Health International Inc. | Health Care | Cannabis | Bull | - | acquisition, Cannabis, EBITDA growth, legalization, Minnesota, Reform, undervaluation, vertical integration | Login |
| Oct 24, 2025 | Fund Letters | Aaron Edelheit | GLASF | Glass House Brands Inc. | Health Care | Cannabis | Bull | - | California, Cannabis, Liquidity, Listing, Reform, vertical integration, visibility, Wholesale | Login |
| Oct 24, 2025 | Fund Letters | Aaron Edelheit | CAN | Cantrip Beverages | Information Technology | Beverages | Bull | - | Beverages, Brand, Cannabis, capital discipline, Distribution, efficiency, growth, valuation | Login |
| Oct 24, 2025 | Fund Letters | Aaron Edelheit | VREOF | Vireo Health International Inc. | Health Care | Cannabis | Bull | - | acquisition, Cannabis, EBITDA growth, legalization, Minnesota, Reform, undervaluation, vertical integration | Login |
| Oct 24, 2025 | Fund Letters | Aaron Edelheit | GLASF | Glass House Brands Inc. | Health Care | Cannabis | Bull | - | California, Cannabis, Liquidity, Listing, Reform, vertical integration, visibility, Wholesale | Login |
| Oct 24, 2025 | Fund Letters | Aaron Edelheit | CAN | Cantrip Beverages | Information Technology | Beverages | Bull | - | Beverages, Brand, Cannabis, capital discipline, Distribution, efficiency, growth, valuation | Login |
| TICKER | COMMENTARY |
|---|---|
| GLASF | Glass House Brands is #1 performer with 67.46% CAGR. Glass House could profitably grow cannabis when many competitors could not. Glass House has significantly outperformed the broader cannabis sector and now trades at a healthy valuation multiple that reflects both its cost leadership and its growth runway as additional greenhouses come online. Glass House benefits from massive scale and state-of-the-art greenhouse cultivation. |
| GRUSF | Grown Rogue is #2 performer with 67.45% CAGR. Grown Rogue has developed a meaningful cost advantage in indoor craft flower. Our research indicates that Grown Rogue may operate at more than a 50% cost advantage relative to larger U.S. cannabis operators. In December, Grown Rogue announced it was sold out in New Jersey and had begun construction on Phase 2 of its indoor facility. The company has also started building a new facility in Minnesota. Grown Rogue has noted on recent conference calls that it is in discussions with cannabis lenders and cannabis real estate investors. |
| VREOF | Vireo is #3 performer with 55.6% CAGR. |
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