The Small Cap BioTech BubbleRedwood_News/Entries/2015/6/11_The_End_of_the_Small_Cap_Biotech_Bubble.html

REDWOOD INVESTMENTS, an independent investment management boutique, specializes in managing Large and Small Capitalization Equity portfolios for ERISA, foundation, endowment and private clients. Redwood also offers Sustainable Investing strategies that incorporate environmental, social and corporate governance (ESG) factors with traditional investment analysis. Portfolios are managed by an experienced investment team utilizing a sophisticated investment process. The portfolio management team employs a disciplined, fundamentally driven stock selection process which integrates in-depth bottom-up equity research informed by proprietary quantitative tools and an advanced portfolio optimization construction system – all aimed at delivering superior and consistent investment performance.  In addition, Redwood’s entrepreneurial employee-owners aspire to deliver highly attentive client service.   

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Redwood Investments Small Cap Growth Strategy

Receives PSN Top Guns Status

(source: Informa Investment Solutions, as of March 31, 2014)


Pensions & Investments includes Redwood

Investments’ Smidcap Growth Strategy in its

“Top-Performing Small Managers of 2013”

Redwood’s Smidcap Growth Strategy is ranked number 4

for 1-year performance

(source: eVestment Alliance, as of September 30, 2013 for managers with less than

$3 billion in assets under management)



Biotechnology and Pharmaceutical (“Biopharma”) stocks have skyrocketed since January 1, 2013 with small cap growth biotechnology stocks jumping 173% vs. 62% for the Russell 2000 Growth Index.  We now believe that Biopharma is currently in an investment bubble, with inflated valuations which have become disconnected from fundamentals.  
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