7707 Atkinson Road Sebastopol CA 95472
We are surely living in a surreal time!! I hope you, your family, and all of your loved ones are well and safe.
We have had a number of solid conference calls with public companies in the retail marijuana space and Cannabis dispensaries are creating double to triple the volumes during this horrible crisis. As we move through and defeat this emergency, the Cannabis market could have sizeable quarterly earnings along with price gains.
Please let us show you our strategy in a brief call. I know this feels weird during this lockdown, but there is a big opportunity as the markets settle. The supply chains in Cannabis are flowing without disruption and the retail demand is literally out the door and around the corner. Illinois, Michigan, Florida, California and other locked downed states have passed new laws to keep Cannabis dispensaries open as critical care units.
Symmetry Capital is the General Partner for Medicus L.P. Symmetry Capital was the general partner for a variety of limited partnerships investing in small to mid-capitalization health care companies, a sector with a great deal of upside for investors with strong fundamental analysis skills and an understanding of science. In 2018, Ms. Seringer and Michael Lamb came together to talk about the Cannabis space, both medicinal and recreational. Both partners have children with Attention Deficit Disorder (ADD) and were intrigued by the data beginning to surface for the use of CBD as a treatment for ADD.
A cursory look at companies in the space indicated that valuations in some of the larger cannabis public companies were not supported by the fundamentals and many were over leveraged with debt. However, there were opportunities further downstream in Cannabis and related companies in the sector. Furthermore, there were many ways to invest in private deals, but very few avenues for investment in professionally managed public equity funds.
Ms. Seringer and Mr. Lamb decided to team up and move forward with an investment product that leveraged both skill sets, public equity fund management and extensive backgrounds in pharmacological drug development and recreational cannabis markets in California. Medicus is a long biased, Limited Partnership for accredited individuals and organizations which will invest in public, exchange traded companies in the cannabis space. Investor net asset values are calculated on a monthly basis by our administrator, Kline Fund Services and audited annually by Spicer Jeffries. This provides full transparency for investors. Our Prime Broker is BTIG and custodian is Pershing. Medicus started investing in January 2020 and will post monthly, performance numbers to this site on the Supporting Documents tab.
Kellie Seringer founded Symmetry Capital Management; a health-care focused hedge fund, in October 2001. For 20 years, Symmetry Capital has focused on small to mid-capitalization biotechnology and medical device companies. In 2019, Symmetry’s limited partnerships will begin investment in the cannabis industry, as a complimentary sector with far more near-term upside potential.
Ms. Seringer has 25 years of public, health care equity experience. Prior to founding Symmetry Capital, Ms. Seringer had been a portfolio manager for the EGM Medical Technology Fund in 2000 and 2001. For the year 2000, the strategy was the 5th overall ranked hedge fund, as reported in January 2001 by Barron’s. Prior to EGM, she held equity research analyst positions at Evolution Capital, Montgomery Securities, now Bank of America Securities, and Dean Witter Reynolds.
Philanthropy is an important aspect to Ms. Seringer’s life. She has been the President of Friends of Harvey Milk from 2010 – 2019. The Friends of Harvey Milk focuses on funding youth projects central to the mission of equity, academics and social justice in the spirit of the work and life of Harvey Milk, who dedicated his life to creating social justice and equity for all. Additionally, she has been a CASA (Court Appointed Special Advocate) in San Francisco for over 10 years and has two daughters who were formerly in foster care. Ms. Seringer has also served as the President of multiple 501(c)3 school foundations over the last decade.
Ms. Seringer graduated from Texas A&M University with Bachelor of Science degrees in Biochemistry and Genetics.
In 2019, Michael Lamb Joined Symmetry Capital Management’s Medicus, this limited partnership will investment in the cannabis industry.
Michael Lamb has a 35-year career working with a number of large primary broker dealers such as Morgan Stanley, Bank of America/Merrill Lynch, and the Piper Jaffray Companies, as an Institutional Fixed Income Regional Manager in the San Francisco office manager for Wealth Management.
Before both management tours, Mr. Lamb worked as an Institutional Fixed Income Salesman to mid-size financial companies as well as a high net worth financial advisor in the Wealth Management division. Institutional work included balance sheet and securities portfolio analysis combined with trading in high quality Corporate, Asset backed, Government Agency and Mortgage backed securities. Wealth management duties include asset allocation, equity sector analysis, and block trading with a focus in Environmental and Social Governance.
Mr. Lamb has spent much of his off work time promoting youth sports programs by coaching women’s basketball for eight seasons and serving as the President of the Sleepy Hollow Swim Team. As a long time sailboat racer on shore and off shore, much of my time on the water is directed toward teaching young people who do not have access to the sport.
Mr. Lamb graduated from the University of California at Davis with a Bachelor of Science in Architectural Design
Timing is Everything!!
We expect the Cannabis market to outpace most business sectors this year due to strong demand and improving company fundamentals in one of the most exciting new sectors since tech in the early 2000s. After a thorough wash-out in 2019, the sector is poised for a comeback as more sophisticated investors inter the space and company management teams perform or are replaced.
Cannabis is a product manufactured in many different formats (flower, CBD, edibles, medicinal, etc) with overall revenue in 2019 of roughly $19 billion and projections of sales growth to nearly $60 billion by 2025. The question is: how do we harvest the profit from businesses generating the revenue in this sector? Our answer is an investment in a professionally managed investment platform in publicly traded companies that touch the Cannabis sector starting in 2020!
While 2018 was an exciting year for the Cannabis community, much of the rising equity values were hyped on the news of legalization in Canada and more individual states in the U.S. Many retail investors flooded to the different Global Stock Exchanges to speculate on the new companies involved in the Marijuana market. However, 2019 was a reality check for the sector and Cannabis stock values declined roughly 50-80% due to poor earnings, lackluster revenue performance, and poor management skills. Luckily, this washout has created a huge opportunity for sophisticated investors with experience in difficult sectors.
2020 brings us closer to many legislative victories for the growers and the supply chain side of the Cannabis business. The House of Representatives has passed the States Banking Bill which will be presented to the Senate in the near term. This bill will make banking legal for permitted businesses in the Cannabis industry. This will also allow investment banking into the space so the capital bottleneck can open to help finance new and ongoing capital requirements. This legalization will allow investment management firms to freely buy Cannabis stocks on the Global Stock exchanges without reservation. Recently, many media outlets have parroted the information above.
The key to maximizing the profit potential in the Cannabis market is to have a diverse portfolio of publicly traded companies which meets liquidity and transparency requirements for investors. Publicly traded Cannabis equities are required to provide audited financial results and disclose all major news events. They have to adhere to SEC rules and other bodies which require compliance. With that reporting, the professionals at Medicus LP can perform the important due diligence, analysis and screening to construct a successful portfolio. The founders of Medicus LP have a combined 60 years of experience in the capital markets and are excited to optimize this experience in the growing industry of Cannabis.
Medicus LP was formed in January 2020. We will publish monthly performance numbers as we get them. All numbers are net of fees and unaudited until the audit is complete the following year. We will clearly mark audited from unaudited numbers.
BTG is our prime broker, Spicer Jeffries is our auditor and Kline fund Services is our administrator. Our stocks are all mark to market, exchange traded equities. Kline Fund Services generates our performance numbers based on the reports generated by BTIG. We do not touch this process in any way.
Please request our Operating Memorandum for a more thorough description of the process and risks involved with Medicus LP.