Redwood Managed Volatility Fund (RWDYX)

Overview

The adviser operates on a trend-following strategy, focusing on identifying significant turning points in both the high yield bond and bank loan markets. This investment strategy is grounded in a quantitatively driven process, aiming to capitalize on market trends for optimized investment outcomes in diversified high yield bonds, bank loans, and other fixed income securities with similar characteristics. The core of this approach lies in the adaptability to market movements, where the adviser seeks to invest in high yield bonds and bank loans during upward trends and shifts towards short-term fixed income securities when the markets indicate a downward trajectory. This methodology is designed to navigate through market volatilities for potential enhanced returns and risk mitigation.

Products and Services

• Diversified High Yield Bond Investments

  This product focuses on investing in a broad range of high yield bonds that exhibit upward market trends. The goal is to provide investors with exposure to high return potentials while actively managing risk through strategic diversification.

• Bank Loan Investments

  Targeting loans extended by banks to entities that are experiencing upward market trends, this investment option seeks to capitalize on the opportunities within the bank loan sector. It aims at combining the potential for high returns with the tactical mitigation of associated risks, leveraging market movements for strategic advantage.

• Other Fixed Income Securities

  This offering extends beyond the conventional high yield bonds and bank loans, encompassing a selection of other fixed income securities with similar characteristics. The product is designed for investors looking to explore further diversification within their fixed income portfolios, benefitting from the adviser’s quantitatively driven investment process.

• Short-term Fixed Income Securities

  During periods where the high yield bond and bank loan markets are trending downwards, the firm shifts focus towards short-term fixed income securities. This strategic adjustment aims to safeguard investments against market downturns, prioritizing capital preservation while seeking positive returns in challenging market environments.