Redwood Trust, Inc.
RWT
position
long
Preston Athey
Thesis
I like the company because I see an increasing set of fees and assets on which they can generate returns. The stock has done very well over the past six months, and if we have a really good housing market and Redwood continues to sell RMBS securitizations, the stock could still double over the next two or three years.
Did it work?
failed
confidence: high
The stock has declined by 80.1% since the pitch, which is a significant negative return that contradicts the long thesis. The expectation of doubling the stock price over two to three years is clearly not being met, indicating that the thesis did not play out as anticipated.
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