You can’t control performance.

You can manage risk.

Manage RiskFirst

Success Follows

$0B
AUM
0+
Financial Advisors
0%*
Annual Growth

For decades, advisors have picked and churned through money managers based on past performance. It’s time-consuming, misleading, and not your main value-add. Ready to break through the inefficient cycle?

Manager “Research” Seeking Returns

Advisors pick and choose the “best” portfolios based on historical returns

Our 3-Step Solution

01Setting Expectations

Define Drawdown Risk

Vague terms like "conservative, moderate, or aggressive" fail to quantify the investor's most important risk metric: capital loss, measured by drawdown. The RiskFirst process is designed to keep investors within drawdown guidelines based on defined risk-tolerance objectives.

Brochure

Provide Ranges

Investor expectations should be based on a range of potential returns aligned with their risk budget. Our portfolios are built to operate with 95% probability within an expected range.

Ranges of Returns

02Implementing Investments

Pair Strategic with Tactical

Redwood Engineered Risk-Budgeted portfolios combine the benefits of strategic long-only and tactical risk management investment styles. Every ERB portfolio operates sub-strategies that can fully participate – or tactically can go risk-off.

Matrix

Strategic

Stays invested to capture strong market rallies
May incur larger drawdowns amid market crises

Matrix

Tactical

Can move into defensive positions to mitigate portfolio drawdown
May miss initial upside in a recovery — or buy back in higher than sell point

Matrix

Engineered Risk-Budgeted Portfolio

Redwood’s Engineered Risk-Budgeted (ERB) portfolios seek to mitigate drawdowns by diversifying both asset classes and investment styles. The ERB models incorporate tactical mandates to maintain beta exposure during upside, with the flexibility to move risk assets to safe havens – such as cash and short-term treasuries – during downturns.

Matrix

Designate Drawdown Limits

Our portfolios are designed to keep the investor on track and within their risk budget. We engineer each portfolio with the objective to stay within drawdown limits based on the investor’s defined risk tolerance.

Matrix

Tactical Fixed-Income

Strategic Equity

Strategic Fixed-Income

Active Factor

Tactical Equity

What is your drawdown tolerance (DT)?

DT5-8%

DT8-12%

DT12-17%

DT17-25%

DT25-35%

03Measuring Outcomes

Redwood operates as a true business partner, providing the models, materials, and metrics you need to achieve practice growth through client satisfaction.

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Show clients they are on track when a portfolio stays within two key metrics: drawdown budget and range of expected returns.

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Proactively engage clients via letters, market reports, and commentaries — weekly, monthly, and quarterly — all “white label” in your brand.

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Utilize Redwood-curated insights, case studies, advisor best practices, and other materials designed to help you refine your narrative and better serve clients.

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Impact for RiskFirst® Partners

Your AUM
38%* – average annual AUM growth for RiskFirst® adopters.
When your clients are aligned with their financial goals, it doesn’t build just credibility and trust – it builds your business.
Your Team
75% of advisors work on a team of three or fewer staff.
Leverage Redwood’s decades of investment and operations expertise to amplify your in-house capabilities.
Your Time
77% of advisors’ time goes to meeting with clients and prospects.
Redwood manages portfolio construction and investment research – so that you can focus on client service.

How to Implement RiskFirst®

Align

To begin, a Redwood Advisor Analyst (AA) will help you evaluate if your business is a good fit for the RiskFirst process.

Investigate

Your dedicated AA facilitates the due diligence research process, answering questions, furnishing resources, and resolving any issues.

Transition

Receive a seamless transition strategy as your AA delivers proven resources tailored to your business goals, ensuring a smooth implementation.

Reframe

Start defining your performance narrative around drawdown risk budget and the ability of client portfolios to stay in range.

Trade

Unlock hand-in-glove support from our in-house operations team to simplify the trade execution process.

Reinforce

Distribute timely, curated materials – market updates, quarterly commentaries, and topical letters – branded to your business.

Collaborate

Enjoy ongoing RiskFirst partnership support from your AA when addressing client-specific needs and while evolving, scaling, and growing your practice.