Two Funds One Letter
The Mindset Value Fund and The Mindset Value Wellness Fund Q3 Letters
Disclaimer: The below post are the Q3 2025 Investor Letters that I sent to investors in the Mindset Value Fund and the Mindset Value Wellness Fund. This post is NOT a solicitation. I talk about stocks that I own and my view of the future. It is imperative that you do your own due diligence and not rely on anything written below. I’m posting this in order to show how my writing translates to actual performance. With that, I hope you enjoy and gain insights.
Mindset Value Fund Q3 2025 Investor Letter
The Mindset Value Fund gained 10.2% on a net basis during Q3 and is down 12.4% year-to-date.
Cannabis Reform in the Air
We appear to be getting closer to real federal cannabis reform. President Trump recently shared a video discussing not only the benefits of the endocannabinoid system, but also the benefits of cannabis legalization.
Shortly after, Target (NYSE: TGT) began selling hemp beverages in a pilot program in Minnesota. The initial lineup of cannabis beverages included three Mindset portfolio companies and one Mindset Value Fund investment — Cann.
Finally, in October, Glass House (OTC: GLASF) became available for trading on Robinhood.
Each of these developments point to the continued normalization and eventual federal legalization of cannabis. While patience has been necessary and the waiting can be frustrating, we believe there is now a strong likelihood of meaningful federal reform before the midterm elections next year.
Vireo Gets Very Aggressive Amid a Volatile Quarter
For reasons that remain unclear, our third-largest position, Vireo (OTC: VREOF), experienced extraordinary volatility this quarter. Beginning on August 28, what appears to have been a portfolio liquidation drove shares from $0.70 down to $0.32 in just four trading days — with no accompanying news.
Remarkably, this sharp decline occurred just two weeks before Vireo received phenomenally positive news: approval to commence adult-use cannabis sales in Minnesota.
I estimate that together, they currently operate about 60,000 square feet of cultivation for adult use and another 60,000 for medical use. Meanwhile, the state’s own analysis shows Minnesota needs between 1.5 and 2 million square feet of cultivation capacity.
Here’s how this impacts Vireo:
As of Q2, Vireo was running at approximately $100 million of annualized EBITDA. Minnesota could add another $30–45 million. On a market cap of roughly $500 million, Vireo looks deeply undervalued if it can generate $130–145 million of EBITDA next year, implying 30–45% growth.
Vireo also announced a blockbuster acquisition — buying the debt of Schwazze, a distressed cannabis operator in Colorado and New Mexico. It appears Vireo acquired the senior debt and is recapitalizing the business at around 3X EBITDA, an extremely accretive deal.
We expect Vireo’s upcoming Q3 earnings report to highlight multiple positives and provide strong growth projections — something in short supply across the cannabis sector. Based on our estimates, Vireo could be trading at just 4X its 2026 EBITDA run rate, while growing 50–100% year over year.
When the stock plunged, we were active buyers. The episode was a vivid reminder, however, of how illiquid and inefficient these stocks remain — and how volatile they may continue to be until reform allows them to trade on major exchanges.
Private Markups Coming in October
In October, we expect to book a couple of meaningful valuation markups from private holdings.
First, our hemp beverage investment Cantrip raised new capital at approximately 3X the valuation of our January 2024 investment. The company has been on a growth tear while remaining impressively capital-efficient. Adam and Dylan are two of the scrappiest entrepreneurs we know, and we’re proud to be their largest outside investor.
Second, we took advantage of a distressed seller in another private investment, Mammoth. We’re closing on additional shares at a fraction of last year’s price — despite the company continuing to perform well and maintaining its intrinsic value. We’ve engaged Houlihan Capital to value our position after this transaction, and we expect to mark up our newly acquired discounted shares accordingly.
There continue to be few investors still operating in the space. Opportunities like this arise because there’s little competition — and if we keep “hanging around the hoop,” we’ll keep finding some easy layups.
Summary
Cannabis-related news dominated this quarter’s update. There was limited activity from Nelnet (NYSE: NNI), HireQuest (NASDAQ: HQI), and Consorcio ARA (Mexico: ARA), though we expect more movement in Q4 — particularly around earnings releases and updates such as HireQuest’s pursuit of TrueBlue.
As a reminder, we will continue to strategically reduce our cannabis exposure in this fund over time as opportunities arise to sell positions at valuations reflecting their true worth. The purpose of this fund is small cap value and we now have other dedicated cannabis funds such as the Mindset Value Wellness Fund that will focus on cannabis.
With meaningful catalysts, strong expected growth, and improving earnings across our portfolio, we remain optimistic about both the near-term and long-term future.
As always, please reach out with any questions or comments.
Sincerely,
Aaron M. Edelheit
****************************************************
Mindset Value Wellness Fund Q3 2025 Investor Letter
The Mindset Value Wellness Fund gained 16.1% on a net basis during Q3 and is down 11.5% year-to-date.
Cannabis Reform in the Air
We appear to be getting closer to real federal cannabis reform. President Trump recently shared a video discussing not only the benefits of the endocannabinoid system, but also the benefits of cannabis legalization.
Shortly after, Target (NYSE: TGT) began selling hemp beverages in a pilot program in Minnesota. The initial lineup of cannabis beverages included three Mindset portfolio companies and one Mindset Value Fund investment — Cann.
Finally, in October, Glass House (OTC: GLASF) became available for trading on Robinhood.
Each of these developments point to the continued normalization and eventual federal legalization of cannabis. While patience has been necessary and the waiting can be frustrating, we believe there is now a strong likelihood of meaningful federal reform before the midterm elections next year.
Vireo Gets Very Aggressive Amid a Volatile Quarter
For reasons that remain unclear, our third-largest position, Vireo (OTC: VREOF), experienced extraordinary volatility this quarter. Beginning on August 28, what appears to have been a portfolio liquidation drove shares from $0.70 down to $0.32 in just four trading days — with no accompanying news.
Remarkably, this sharp decline occurred just two weeks before Vireo received phenomenally positive news: approval to commence adult-use cannabis sales in Minnesota.
I estimate that together, they currently operate about 60,000 square feet of cultivation for adult use and another 60,000 for medical use. Meanwhile, the state’s own analysis shows Minnesota needs between 1.5 and 2 million square feet of cultivation capacity.
Here’s how this impacts Vireo:
As of Q2, Vireo was running at approximately $100 million of annualized EBITDA. Minnesota could add another $30–45 million. On a market cap of roughly $500 million, Vireo looks deeply undervalued if it can generate $130–145 million of EBITDA next year, implying 30–45% growth.
Vireo also announced a blockbuster acquisition — buying the debt of Schwazze, a distressed cannabis operator in Colorado and New Mexico. It appears Vireo acquired the senior debt and is recapitalizing the business at around 3X EBITDA, an extremely accretive deal.
We expect Vireo’s upcoming Q3 earnings report to highlight multiple positives and provide strong growth projections — something in short supply across the cannabis sector. Based on our estimates, Vireo could be trading at just 4X its 2026 EBITDA run rate, while growing 50–100% year over year.
When the stock plunged, we were active buyers. The episode was a vivid reminder, however, of how illiquid and inefficient these stocks remain — and how volatile they may continue to be until reform allows them to trade on major exchanges.
Private Markups Coming in October
In October, we expect to book a couple of meaningful valuation markups from private holdings.
First, our hemp beverage investment Cantrip raised new capital at approximately 3X the valuation of our January 2024 investment. The company has been on a growth tear while remaining impressively capital-efficient. Adam and Dylan are two of the scrappiest entrepreneurs we know, and we’re proud to be their largest outside investor.
Second, we took advantage of a distressed seller in another private investment, Mammoth. We’re closing on additional shares at a fraction of last year’s price — despite the company continuing to perform well and maintaining its intrinsic value. We’ve engaged Houlihan Capital to value our position after this transaction, and we expect to mark up our newly acquired discounted shares accordingly.
There continue to be few investors still operating in the space. Opportunities like this arise because there’s little competition — and if we keep “hanging around the hoop,” we’ll keep finding some easy layups.
Summary
This could be an exciting fourth quarter for cannabis. We think reform is edging ever closer and that our companies are poised for significant growth in the quarters and years ahead. And while there wasn’t much to write on about our largest position Grown Rogue (OTC: GRUSF), we think that could very much change in the next investor letter.
With meaningful catalysts, strong expected growth, and improving earnings across our portfolio, we remain optimistic about both the near-term and long-term future.
As always, please reach out with any questions or comments.
Sincerely,
Aaron M. Edelheit