Redwood US Value Stocks

Rewdwood is a core-satellite strategy focused on business cycle analysis with the goal to choose best performing sectors in the USA. Strategy is managed by CFA charter holders. During different stages of a business cycle, various US sectors outperform the broad market (S&P500). Our strategy is focused on such analysis and overweighting best stocks from most promising sectors of US economy. It's a conservative & long term portfolio with a goal to beat the benchmark - S&P500 by 50% on annual basis. This portfolio is managed by investment professionals with 10 years of experience in financial markets. Portfolio managers are entitled to use CFA designation as well as Investment Advisor and Stock Broker licenses certified by Polish Financial Supervision Authority. According to our market view, currently financial markets are in the late phase of a bull market. We believe that the inflation has already hit its bottom, interest rate will be rising along with Fed decisions and commodities have already entered the bull market. Our view is consistent with expected fiscal policy under Donald Trump administration. These factors have prevailed to overweight such sectors like Energy, Industrials and Basic Materials. Redwood portfolio is an example of a top-down approach. After our macro analysis and decisions concerning most promising US sectors, we are heading to micro analysis of particular companies, looking for "winners". Our micro analysis is focused especially on an extensive fundamental approach. Our strategy actively manages allocation among 10 US Sectors (Consumer Discretionary, Consumer Staples, Energy, Financials, Health Care, Industrials, IT, Materials, Telecommunications and Utilities). The alpha of Redwood portfolio is created by overweighting the most promising sectors and underweighting industries with worse risk/reward ratio. This approach helps us to create a sustainable alpha and provide extensive diversification of our portfolio. These factors results in a much higher Sharpe ratio than the broad market. Strategy is focused on medium and big stocks (market cap is bigger than few billions of dollars) with stable dividend policy. Thanks to these approach the overall portfolio risk is considerably low. Average number of transactions per month equals 6-7 which makes this approach cost-effective. Average number of holdings in a portfolio is 15.