Fundamental Investing in the Era of Climate Change Redwood Grove Capital is a thematic, value public equity manager. Our approach is driven by a simple, yet powerful idea: climate change’s economic impact is mispriced in the markets, representing a durable alpha generator for active managers. Our two part investment process analyzes a company’s fundamental strength as well as the economic impacts of climate change. We do this by incorporating climate science’s forecasts into a value investment process. Redwood Grove believes that by focusing on the economics of climate change, and scientific forecasts we identify market inefficiencies. We look for strong absolute returns with a focus on finding the best investment opportunities, and less on correlation to a specific benchmark. With over 25 years average experience, our partners have invested capital for large institutional investors through multiple market cycles. Portfolio Construction: Our portfolio is derived from two complementary investment analyses. This two part investment process identifies fundamentally undervalued companies that are also beneficiaries of unpriced trends created by climate change. Our fundamental research evaluates a company’s management, business, and valuation. Concurrently our climate analysis identifies forecasted marco-trends and the impact on publicly traded companies. These trends are broken up into four main categories; technological shifts in energy production and consumption, physical impacts of a warming planet, consumer behavioral changes and future global, federal and state regulations. Each of these macro trends have underlying sub-trends, many of which are reflected in our portfolio holdings.