Redwood Asset Management Announces Launch of a Unique New Fund Designed to Profit from Mispriced Assets Caused by Irrational Investor Behaviour

Redwood Asset Management Inc. (“Redwood”) is pleased to announce the launch of Redwood Behavioural Opportunities Fund (“the Fund”), a unique new strategy that seeks to identify and profit from irrational, emotionally driven investor decisions. Redwood has completed the initial public offering of ETF shares and the Fund will commence trading on the Aequitas NEO Exchange (“NEO”) today under the ticker symbol “BHAV”. The Fund is also available in mutual fund Series A (RAM360) and Series F (RAM361) through Fundserv.

“This unique Fund – the first of its kind in Canada – represents an important new frontier for investors,” said Peter Shippen, President and Chief Executive Officer of Redwood Asset Management. “While the study of Behavioural Finance is not new, Canadians have until this point not had a widely accessible vehicle to capitalize on the collective effects of investors’ emotional mistakes. The launch of Redwood Behavioural Opportunities Fund marks yet another essential step forward in the long-term evolution of our business, and in our view, is a meaningful way to help our clients achieve their goals.”

Redwood Behavioural Opportunities Fund is sub-advised by Richardson GMP’s asset management division, Connected Wealth®, led by Chief Investment Officer Craig Basinger. “We are very excited about the launch of this new product,” said Mr. Basinger. “There are thousands of funds in Canada, most of which are value or dividend focused, but there is only one Behavioural Finance-based fund. Investors’ emotional mistakes are potentially one of the greatest sources of mispriced assets in the market, and this actively managed, multi-approach strategy is a logical way to target – and profit from –  the behaviours that cause the mispricing.”


Redwood Behavioural Opportunities Fund

Redwood Behavioural Opportunities Fund aims to generate long-term capital growth by investing predominantly in equity securities of North-American issuers. The Fund utilizes a basket of different strategies, each researched and designed to take advantage of either an investor behavioural bias/weakness or structural inefficiency in the market.

Return to Press Releases