Toronto-based Redwood Asset Management Inc. has launched Redwood Behaviour Opportunities Fund, a new strategy that identifies and profits from “irrational, emotionally driven investors decisions,” the firm announced.
Redwood has completed the initial public offering of ETF shares and the fund began trading on Aequitas NEO Exchange Jan. 17. The fund is also available in mutual fund Series A and Series F through Fundserv.
“This unique fund — the first of its kind in Canada — represents an important new frontier for investors,” says Peter Shippen, president and CEO of Redwood Asset Management, in a statement.
“While the study of behavioural finance is not new,” he adds, “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 clients achieve their goals.”
The 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. There are thousands of funds in Canada, most of which are value or dividend focused, but there is only one behavioural finance-based fund,” Basinger says, in a statement.
“Investors’ emotional mistakes are potentially one of the greatest sources of mispriced assets in the market, and this actively managed, multi-approached strategy is a logical way to target — and profit from — the behaviours that cause the mispricing,” he adds.