Contact Us

Marmont Partners, LLC
925 W. Lancaster Avenue, Suite 220, Bryn Mawr, PA 19010
inquiries@marmontpartners.com
833-MARMONT / (833)-627-6668

Philosophy
& Process

The central premise that guides Redwood’s investment philosophy is that a good business is not necessarily a good stock. Redwood seeks to generate alpha by combining quantitative and qualitative assessments designed to identify attractively valued, high quality companies that will exceed sell side consensus earnings expectations over the near- to intermediate-term. The portfolio holds 35-50 names and is moderately concentrated to allow the team’s conviction to shine through.

The quantitative model helps to efficiently and objectively narrow the universe and points Redwood’s fundamental analysts toward stocks with attractive characteristics that are believed to have a good chance of exceeding Wall Street (sell side) analyst estimates. Redwood’s analysts seek to understand the critical drivers of each business they assess, and only invest in those companies where they possess a materially above-consensus view. While upside to consensus estimates are a prerequisite to invest in any stock, the decision-making process integrates quality and valuation to minimize the chances of negative surprises and ensure that the upside to earnings estimates is not already reflected in the stock price.

Teamwork is important at Redwood as it enhances collaborative thinking and helps eliminate bias. All decisions are made by unanimous agreement of the investment team. The firm shares an entrepreneurial culture and has a flat structure. There is no room for complacency at Redwood.

Redwood started the International Developed Markets strategy in July 2014. Michael Mufson, Ezra Samet and Don Smith form the International Developed Market portfolio management team.

Alpha is a measure of how much better or worse a fund’s performance is relative to an index of funds in the same category, after allowing for differences in risk.

Redwood uses the same fundamental,
bottom-up investment process in all
its strategies and prides itself on
consistently employing this approach
across asset categories with a
common goal of generating alpha.

Daily Price Change

MARMONT REDWOOD INTERNATIONAL EQUITY FUND
DAILY PERFORMANCE AS OF 12/5/2019

MARMONT REDWOOD INTERNATIONAL EQUITY FUND
DAILY PERFORMANCE AS OF 12/5/2019
Fund Ticker Price Change
» Institutional MRILX $10.48 -$0.34
» Retail MRIDX $10.55 -$0.34

WHY MARMONT REDWOOD INTERNATIONAL EQUITY FUND

TEAM

Redwood Investments International Equities team is comprised of our three portfolio managers who have over 45 years of combined investment expertise. The group is aligned behind the philosophy and process, and makes decisions as a team.

APPROACH

Redwood Investments has a universal investment philosophy across all products: they believe that stocks are largely priced as a multiple of consensus earnings estimates, and that these estimates are typically flawed due to human nature and market structure. Further, these inefficiencies can be exploited by diligent investors to clients’ advantage. The inefficiencies may be more pronounced in non-US markets.

RISK AVERSE

At its core, Redwood is a qualitative investment firm focused on fundamental analysis. Critical to the approach, however, is a proprietary quantitative model that serves as a first step in their investment process. The model narrows the broad universe of companies and allows the analysts to prioritize their qualitative research. The model is also used to provide objective feedback on individual stocks, and to continuously manage risk and exposures in the overall portfolio.