10 Best Marijuana Stocks To Buy According to Hedge Funds

2. Tilray Brands, Inc. (NASDAQ:TLRY)

Number of Hedge Fund Holders: 16

The New York-based Tilray Brands, Inc. (NASDAQ:TLRY) has a highly diversified global portfolio – operating in more than 20 countries with businesses in medical adult-use cannabis, beverages, spirits, wellness products, and a vast array of consumer-connected lifestyle brands.

Tilray Brands, Inc. (NASDAQ:TLRY)’s core business is cannabis but that seems to be changing now. The company recently forayed into the alcohol sector with significant investments in craft breweries and is now the 5th largest craft beer business in the US with a 4.5% market share. In fact, Tilray Brands, Inc. (NASDAQ:TLRY)’s alcohol business now accounts for 28% of its revenue, whereas 31% came from cannabis. A year ago, 13% of its sales were from alcohol and 40% from cannabis. The other two segments, distribution services and wellness products, haven’t changed that much. This comes in response to the slower-than-expected marijuana legalization policies in the US and the EU, and the saturation of the cannabis market in Canada.

That said, Tilray Brands, Inc. (NASDAQ:TLRY) is still the number one cannabis business in Canada, the leading medical cannabis business across Europe, and the top branded hemp business in North America.

Despite its shifting strategy, Tilray Brands, Inc. (NASDAQ:TLRY) continues to invest and expand its presence in the cannabis industry. In September, Tilray also entered the lucrative US THC beverage market with a range of Delta-9 THC mocktails and seltzers through its newly formed Tilray Alternative Beverages business unit. The company is hoping to dominate the rapidly ballooning market for cannabis-infused drinks since it already has a business and distribution network in place thanks to its beverage-related assets.

Tilray Brands, Inc. (NASDAQ:TLRY) ended its Q1 with $287.9 million in long-term debt and $280.1 million in cash, equivalents, and short-term investments. Its TTM cash outflow was just $82.2 million, so it can still afford to sustain its strategy of diversification and expansion into new businesses and markets for a while.

At the end of Q3 2024, shares of Tilray Brands, Inc. (NASDAQ:TLRY) were held by 16 hedge funds tracked by IM with a total stake value of $20.62 million, up 36% from the previous quarter.