Redwood Investment Management

What Redwood Investment Management does

Redwood Investment Management is a privately held, SEC-registered investment adviser founded in 2010 by Michael T. Messinger and headquartered in Scottsdale, Arizona, with a secondary office in Los Angeles. The firm builds proprietary quantitative investment strategies under the RiskFirst® process, which frames risk around quantified drawdown tolerance bands (DT5-8% through DT25-35%) rather than conventional volatility or qualitative labels. Its Engineered Risk-Budgeted (ERB) portfolios combine strategic long-only and tactical risk-management sub-strategies, with the flexibility to rotate into cash or short-term treasuries during drawdown periods. Redwood distributes these models through Redwood Mutual Funds, separately managed accounts (SMAs), unified managed accounts (UMAs), and a model-portfolio program accessible across multiple custodian and advisory platforms.

The firm generates revenue through recurring investment-advisory fees on assets under management, with pricing delivered via quote-based engagement rather than public disclosure. As of 12/31/24, Redwood reported approximately $2.7B in AUM — unchanged year-over-year — distributed through 300+ partner financial advisors, most independent and operating in teams of three or fewer staff. Go-to-market is anchored by a dedicated Advisor Analyst (AA) model and a 7-step implementation process (Align, Investigate, Transition, Reframe, Trade, Reinforce, Collaborate), supplemented by white-label client communication materials and pre-built matrices for each major custodian and broker-dealer platform. In October 2025, Redwood liquidated its two LeaderShares® ETFs (ACTV and SQEW), refocusing on the model-portfolio and RIC mutual fund channels. The firm is GIPS-compliant and maintains affiliations with Mulholland Wealth Advisors as an affiliated RIA.

Name

Redwood Investment Management

Legal name

Redwood Investment Management, LLC

Website

https://redwoodim.com

Company type

Private

Founded year

2010

Operating status

Operating

Headcount range

11–50 employees

Short description

Redwood Investment Management is a Scottsdale-based SEC-registered investment adviser that builds proprietary Engineered Risk-Budgeted (ERB) portfolios under its RiskFirst® drawdown-management process, distributing them to 300+ independent financial advisors across multiple custodians and broker-dealer platforms.

Ownership category

akta.pro rank

Product category

Investment Management (Asset Management)

NAICS

Portfolio Management and Investment Advice (523940), Open-End Investment Funds (525910)

SIC

Investment Advice (6282)

akta.pro primary industry

Advisory Portfolio Management (Non-Discretionary) (FSAAABAD)

Keywords

• Investment management
• Drawdown risk management
• Model portfolios
• Financial advisor solutions
• Risk-budgeted portfolios

Headquarters

HQ city

Scottsdale

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Investment Advisory Fees: Redwood generates revenue as a registered investment advisor providing proprietary investment strategies. Serves as advisor to Redwood mutual funds, LeaderShares ETFs, separately managed accounts, unified managed accounts, and model portfolios.
2. Model Portfolio Distribution: Distributes ERB model portfolios to financial advisors through custodian platforms (Fidelity, Schwab, Pershing, etc.) and broker-dealer relationships. Revenue derived from advisory fees on assets under management.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels5 records

Core offering

Redwood Investment Management is an SEC-registered investment adviser that provides quantitative, drawdown-focused investment solutions to financial advisors through its proprietary RiskFirst process and Engineered Risk-Budgeted (ERB) portfolio models. The firm delivers these strategies via mutual funds, separately managed accounts, unified managed accounts, and model portfolios made available across major custodian and advisory platforms. The offering combines strategic long-only and tactical risk-management styles with the flexibility to shift to defensive positions during market downturns.

Product overview

Redwood Investment Management offers a unified investment platform centered on its proprietary RiskFirst process, which provides Engineered Risk-Budgeted (ERB) portfolio models designed to manage drawdown risk. The firm delivers its investment solutions across multiple product vehicles including Redwood Mutual Funds (RIC mutual funds), LeaderShares ETFs (exchange-traded funds), separately managed accounts, unified managed accounts, and model portfolios. These products are distributed through a network of 300+ partner financial advisors and are accessible across multiple custodian and platform integrations including Fidelity, Pershing, Interactive Brokers, Orion, Envestnet, and other major advisory platforms.

Differentiator

Problem solved

Functional benefit

Brands

• RiskFirst®: Proprietary investment process focused on drawdown risk management and setting achievable investor expectations.
• LeaderShares®
• Redwood Mutual Funds
• Engineered Risk-Budgeted (ERB) Portfolios

Products and services

• RiskFirst Process Proprietary three-step investment process focused on drawdown risk management: Setting Expectations (define drawdown risk and provide ranges of potential returns), Implementing Investments (pair strategic with tactical through ERB portfolios), and Measuring Outcomes (quantify success through drawdown budget and range of expected returns). Provided to financial advisors serving their end clients.
• Engineered Risk-Budgeted (ERB) Portfolios Model portfolios that combine strategic long-only and tactical risk-management investment styles, with sub-strategies that can fully participate in upside or tactically move to risk-off positions (e.g., cash, short-term treasuries) during downturns. Engineered to remain within defined drawdown tolerance bands (DT5-8%, DT8-12%, DT12-17%, DT17-25%, DT25-35%). Delivered to financial advisors through custodian and platform integrations.
• Redwood Mutual Funds Registered Investment Company (RIC) mutual funds for which Redwood Investment Management serves as investment adviser.
• Separately Managed Accounts Individual portfolio management accounts managed by Redwood and tailored to specific client needs, distributed through partner financial advisors.
• Unified Managed Accounts Consolidated account structures that combine multiple investment strategies within a single account, managed by Redwood and offered through partner advisors.
• Model Portfolios Pre-constructed portfolio models made available to financial advisors for implementation with their clients across custodian platforms including Fidelity, Schwab, Pershing, Orion, Envestnet, Morningstar, and others.

Quantifiable outcome

• 28% average annual AUM growth for RiskFirst adopters with minimum 3 years after adoption
• +2 more outcomes

Named customers8 records

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration15 records

Feature3 records

Partnerships

Twelve partnerships are on record, tiered core and major.

• FidelitycoreTechnology or IntegrationFidelity serves as a custodian platform for Redwood's ERB model portfolios. Redwood provides model matrices specific to Fidelity for advisor use.
• SchwabcoreTechnology or IntegrationSchwab platform hosts Redwood ERB model portfolios. Dedicated Schwab-specific matrix available for advisor implementation.
• PershingcoreTechnology or IntegrationPershing custodian platform provides access to Redwood ERB Pershing Matrix for advisors.
• LPL FinancialcoreChannel Partner/ Reseller/ DistributorMajor broker-dealer partner with dedicated Redwood ERB LPL Financial Matrix. Redwood sponsors LPL Focus conferences.
• OrionmajorTechnology or IntegrationAdvisory platform integration for Redwood model portfolios.
• RiskalyzemajorTechnology or IntegrationRiskalyze trading platform integration with Redwood ERB models.
• Adhesion WealthmajorTechnology or IntegrationAdvisory platform partner for Redwood model portfolio distribution.
• AltruistmajorTechnology or IntegrationCustodian and platform partner for Redwood ERB models.
• EnvestnetmajorTechnology or IntegrationPlatform integration for Redwood model portfolios and managed account services.
• MorningstarmajorTechnology or IntegrationMorningstar platform hosts Redwood ERB model matrices for advisor access.
• Advisor GroupmajorChannel Partner/ Reseller/ DistributorBroker-dealer network partner for Redwood investment solutions distribution.
• Atria WealthmajorChannel Partner/ Reseller/ DistributorBroker-dealer partner for distribution of Redwood investment solutions.

Scale indicators4 records

Recent moves7 records

Expansion highlights3 records

Direct peers

• AssetMark: AssetMark provides curated model portfolios and investment solutions to independent advisors, with a similar go-to-market through advisor platforms and custodians. Comparable product suite and target customer base.
• Manning & Napier: Manning & Napier manages multi-asset portfolios distributed primarily through financial advisors, with a multi-decade focus on risk-managed strategies. Similar niche in advisor-distributed risk-controlled portfolios.
• Dimensional Fund Advisors: Dimensional is the canonical advisor-focused asset manager, distributing proprietary fund and model portfolio strategies exclusively through financial advisors. Highly comparable business model and channel strategy to Redwood, with significantly greater AUM scale.
• Russell Investments: Russell delivers model portfolios and multi-asset strategies to financial advisors and institutional clients. Comparable in its advisor-channel distribution of risk-managed portfolio solutions, with broader institutional reach.

Broad incumbents

• Morningstar Investment Management: Morningstar's investment management arm builds and distributes model portfolios on the Morningstar platform — the same platform that hosts Redwood's matrices. Comparable product with substantially larger distribution leverage.
• SEI Investments: SEI provides investment management and platform services to advisors and institutions, including model portfolios and managed account solutions. Larger, more diversified incumbent serving the same advisor channel.
• BlackRock: BlackRock offers advisor model portfolios and risk-managed strategies across iShares and managed-account platforms. Significant competitor for advisor wallet share, with far greater scale and R&D resources.
• Vanguard: Vanguard distributes model portfolios (e.g., Vanguard Adaptive Allocation) through advisors at low fees. Much larger scale and brand, putting pricing pressure on specialist managers like Redwood.

Emerging players

• Envestnet: Envestnet is both a Redwood distribution partner and a competitor offering its own PMC model portfolios on its advisory platform. Direct overlap in product offering and target customer.
• Brighthouse Financial: Brighthouse provides risk-managed investment solutions including model portfolios distributed through financial institutions. Comparable product positioning with focus on risk-managed outcomes.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights5 records

Customer concentration

• Xx.com/RedwoodInvestm1
• Facebookfacebook.com/RedwoodInvestmentManagement
• LinkedInlinkedin.com/company/redwood-investment-management-llc

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Subsidiaries3 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Redwood Investment Management