Redwood Grove Capital reflects on the challenges of 2018’s volatile market, particularly on value stocks due to concerns about higher interest rates and an economic slowdown. We share our views on the undervalued position of Western Digital due to short-term cyclicality in the NAND markets, as well as investment opportunities arising from the PG&E bankruptcy, particularly in the renewable energy sector.
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Rapidly shifting federal policy has driven market volatility that reflects narrative churn more than underlying fundamentals. Redwood Grove views this environment as a source of opportunity, focusing on companies positioned to benefit from structural change while underwriting long-term climate risk rather than short-term noise.
Data Centers, Electricity, and Climate
Our Q3 2025 Investor Letter explores how the rapid expansion of AI and data centers is reshaping global energy demand and creating long-term opportunities in clean power. We discuss Redwood Grove Capital’s positioning to capture this trend through disciplined investments in renewable and energy-efficiency companies aligned with climate resilience and sustainable growth.
Coffee and Climate
Redwood Grove Capital’s Q2 letter highlights how climate change is disrupting global coffee production, with rising temperatures, drought, and crop disease impacting supply and prices. These challenges illustrate a broader theme: companies and systems must adapt—not just mitigate—to a changing climate.
