Redwood Grove’s latest quarterly letter explores the perfect storm caused by exponential energy demands in the era of AI running up against an aging and underinvested grid system.

In this quarterly update, Redwood Grove looks at how climate change impacts food production: altering flavor profiles, complicating growing conditions and disrupting supply chains. Examining climate change’s inflationary impact on food, we discuss a new addition to our portfolio, International Flavors and Fragrances (IFF) and the continued role of flavoring companies as food manufacturing adapts to new climate challenges.

In the latest update from Redwood Grove, we look at the alarming rise in global temperatures, the market’s short-term focus with renewable energy stocks experiencing a significant sell-off, and discuss the increasing attention on the economics of climate change and the importance of a long-term view.

Redwood Grove Capital explores the environmental impact of plastic packaging and the growing concern around waste. We highlight our investment in Westrock, a leading cardboard manufacturer, aligning with the global shift towards eco-friendly packaging solutions.

Our latest update addresses the alarming reality of Earth’s hottest day on record, and the impact of extreme weather events. We discuss Generac as an opportunity to adapt to the growing challenges posed by climate change, while introducing NextEra Partners as a strategic addition to the portfolio for its focus on clean energy projects.

Redwood Grove publishes its first impact report to give our investors a more quantifiable and comparable way to understand how the portfolio performs from a climate perspective. We spotlight the strategic addition of PGT Innovations, a leading manufacturer of impact-resistant windows positioned for growth amid extreme weather.

Redwood Grove addresses the rise of the “Anti-ESG” movement, and recent state legislatures aiming to restrict ESG and climate considerations in pension investments. We delve into the nuances between impact investing and ESG, and Redwood Grove’s unique approach to identifying climate-driven market inefficiencies.

In this update, we discuss how climate change remains inaccurately priced into public equity markets, and why this mispricing represents a significant source of alpha. We look at the impact of extreme weather events, highlighting the disconnect between scientific research and market analysis, and the opportunity to integrate thoughtful fundamental and climate research.

Redwood Grove shares the origin story of our firm name and explores the impact of extreme weather on agriculture and companies like Lamb Weston, a major supplier of the American french fry. We explore investment opportunities in companies with sustainable and climate-resilient approaches, such as Gibraltar Industries and their focus on reducing agricultural greenhouses.