Indoor Harvest Corp (INQD)

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"Let me tell you a story," said Bocskor. "In January, I was at ArcView and we were listening to different companies pitching. One company had a $295 million market cap, but no revenues, no capital on hand, and a complete disconnect between basic financials and its share price. When I asked the CEO about it, he said that disconnect wasn't his problem. I said it was his problem and his company and its stock was going to act as a magnet for mischief and bad actors.

"We all know this [industry] has attracted bad actors, and that regulators are being very careful. But I have seen this kind of thing before, during the dot-com era. Some of these companies might as well have dot-cannabis attached to their name," he said.

Bocskor has some background in investment banking, having worked as a broker at Lehman Brothers in the 1980s and having co-founded Mason Cabot LLC, an investment bank that focused on early-stage media and technology finance, in the 1990s.

His strategy with his hedge fund will focus largely on turning around marijuana businesses that struggle as public companies.

"A lot of these companies are going to have problems. Their share price might start out well after a reverse merger, but it will drop and they will have trouble navigating the waves as a public company," he said. "For companies with a value proposition - real assets and a pedigree - we will look to do a turnaround."

Douglas Leighton, managing partner of hedge fund manager Dutchess Capital Management in Boston, said he thinks Bocskor's turnaround strategy has merit.