Cannabis Stocks News: What Hedge Funds Are Really Doing After Trump's Move

During the third quarter of 2025, some of Wall Street’s most sophisticated money managers made a calculated move that tells us something important about where they think the cannabis sector is heading. While most investors were focused on traditional sectors, a quiet accumulation of Canopy Growth shares by the industry’s sharpest minds suggests they believe the story isn’t over. Here’s what the data reveals about institutional positioning in cannabis stocks and what it could mean for the broader market.

Why Big Quantitative Funds Are Quietly Accumulating Canopy Growth

The latest SEC 13-F filings paint a clear picture: it wasn’t your typical mutual fund managers or passive index trackers driving the action in cannabis stocks during Q3 2025. Instead, the heavyweights of quantitative trading stepped in decisively. Susquehanna International Group led the charge, expanding its position by approximately 2.75 million shares. Following closely behind were other titans of algorithmic finance: Citadel added 2.7 million shares, Millennium Management purchased 2.1 million, and D.E. Shaw accumulated 1.9 million.

For context, Canopy Growth remains one of Canada’s largest publicly traded cannabis producers, though it has historically struggled with profitability—partly due to its inability to access the lucrative U.S. market under current federal restrictions. These restrictions, however, may be loosening.

The December Catalyst That Triggered Momentum

In December 2025, President Donald Trump issued an executive order directing the Department of Justice to explore rescheduling marijuana to Schedule III status. While this wouldn’t constitute full federal legalization, it represents meaningful progress toward removing federal barriers. The cannabis stocks rally that followed was sharp but ultimately short-lived. Canopy Growth and similar companies experienced price volatility as traders digested the implications.

The key question for investors watching these cannabis stocks: Are the institutional investors who loaded up in Q3 maintaining their positions, or did they exit during the selling that followed?

The Next Big Signal Comes Soon

Here’s what makes the current situation in cannabis stocks so uncertain: the institutional buyers’ next moves won’t be clear until the next round of SEC 13-F filings become available. These quarterly reports will reveal whether the quantitative funds saw the post-December pullback as a buying opportunity to expand positions further, or as a signal to reduce exposure.

For now, the data suggests that despite the price weakness in cannabis stocks, some of the world’s most sophisticated investors believe the long-term thesis remains intact. However, without concrete confirmation from upcoming filings, drawing firm conclusions remains premature. Investors should probably monitor these developments before making significant moves in the sector.

What This Means for Cannabis Investment Strategy

The activity in cannabis stocks by these institutional players offers several valuable lessons. First, when major quantitative funds move in concert on a single stock, they’re usually responding to probability shifts rather than hype. Second, the fact that they’re willing to hold through volatility suggests confidence in regulatory progress. Third, the timing of their purchases—ahead of the December rally—demonstrates they had conviction before the catalyst became mainstream news.

That said, cannabis stocks remain highly speculative. The Motley Fool’s Stock Advisor team has noted that many investors chase cannabis narratives without fully understanding the underlying business dynamics. Historical analysis shows that patience and conviction matter: Netflix and Nvidia investors who held through volatile periods saw returns exceeding 400,000% and 1,000,000% respectively over the long term. Cannabis stocks could follow a similar trajectory, but only for investors who maintain conviction through the inevitable ups and downs ahead.