Modern Value Investing

Redwood Grove Capital, LP is a thematic, value-oriented, public equity manager in the era of climate change. We look for strong absolute returns. Redwood Grove is not an index fund. Instead, we use a dual investment process that analyzes a company’s fundamental strength as well as the economic impacts of climate change. We closely follow climate science to understand the economics of mitigation and adaption strategies. Our focus is on finding the best investment opportunities we can, and less on correlation to a specific benchmark.

Portfolio Construction:

Our portfolio is built by dual analysis. The two-pronged research process identifies fundamentally undervalued companies that also capture a market inefficiency associated with climate change. We divide the most impactful macro trends forecasted by climate scientists and economists into four main categories; 1) technological shifts in how we produce and consume energy 2) physical impacts of a warming planet 3) consumer behavioral changes and 4) future global, federal and state regulations. Each of these macro trends have underlying sub-trends, many of which are reflected in our portfolio holdings.