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REDWOOD INVESTMENTS uses a time-tested investment process designed to generate consistent and superior performance while managing risk. The approach is designed to look at assets objectively and follow a strict, disciplined process to managing money.
STOCK SELECTION
The process is initiated utilizing a proprietary model that ranks every security in the investment universe based on fundamentals, valuation, and quality. The portfolio management team conducts fundamental research on the highest ranked stocks by focusing on the critical variables. To do so, the team meets with company management, competitors, customers, and suppliers, analyzes financial statements and conducts a thorough valuation appraisal. The most attractive stocks are then placed on a short list of candidates for inclusion in the portfolios.
PORTFOLIO CONSTRUCTION
Controlling risk is an important component to generating consistent returns. Redwood’s portfolio construction process is designed to optimize returns while reducing risk through prudent diversification, analysis of beta, sector, industry, and other factors, continuous monitoring, and the constant discovery of new investment ideas.
SELL DISCIPLINE
Redwood’s strict, well-defined sell discipline provides even greater risk control. By closely monitoring investments and measuring critical variables within each company, Redwood seeks to outperform the benchmark and minimize risk. |
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